Davison Toaster Corp. sells its products for $110 per unit. It has the following costs:
Rent | $ | 103,200 | ||
Factory labor | $ | 16 | per unit | |
Executive salaries | $ | 160,000 | ||
Raw materials | $ | 7 | per unit | |
The break-even point is
Variable costs per unit = Raw materials per unit + Factory labor per unit
= $7 + $16
= $23
Contribution margin per unit = Selling price per unit - Variable costs per unit
= $110 - $23
= $87
Fixed costs = Rent + Executive salaries
= $103,200 + $160,000
= $263,200
Break-even point = Fixed costs / Contribution margin per unit
= $263,200 / $87
= 3,025 units
Davison Toaster Corp. sells its products for $110 per unit. It has the following costs: Rent...
Wilson Wood Coup, sells its products for $80 per unit. It has costs as follows: Rent = $ 101, ooo Factory labor = $13 per unit Executive salaries & 13o, ooo Raw Materials = 64 per unit The break-even point is =
Needy Threads sells its products for $27 per unit. It has the following costs: Rent = $ 215, ooo Factory labor = $11.00 per unit Executives under contract 448,300 Raw material = $2.60 per und Separate the expenses between fixed and variable costs per unit, Using this information and the sales price of $27 per unit, compute the break-even point. Do not round intermediate calculations.) Break even point = units.
Clark Zealand Co. has total fixed costs of $160,000. Its product sells for $40 per unit and variable costs amount to $30 per unit. What is the break-even point in dollar sales? Use the formula(s) that were introduced in this chapter. Hint: the BV point in dollar sales will be a number greater than $500,000
Baird Corporation sells products for $28 each that have variable costs of $16 per unit. Baird's annual fixed cost is $278,400. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Break-even point in units Break-even point in dollars
National Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are red, $65; white, $95; and blue, $120. The per unit variable costs to manufacture and sell these products are red, $50; white, $70; and blue, $90. Their sales mix is reflected in a ratio of 2:2:1 (red:white:blue). Annual fixed costs shared by all three products are $160,000. One type of raw material has been used to manufacture all three products. The company has developed...
A company manufactures and sells a product for $115 per unit The company's fixed costs are $63,760 and its variable costs are $85 per unit. The company's break-even point in units is O 2125 O 554 750. O 319. 0 790. A company's prime costs total $5,400,000 and its conversion costs total $9,400,000. If direct materials are $2200,000 and factory overhead is $6,200,000, then direct labor is: O $4,000,000. $18,800,000. $3,200,000 $1,000,000 o $5,400,000,
Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $65; white, $95; and blue, $120. The per unit variable costs to manufacture and sell these products are red, $50; white, $70; and blue, $90. Their sales mix is reflected in a ratio of 2:2:1 (red:white:blue). Annual fixed costs shared by all three products are $160,000. One type of raw material ha been used to manufacture all three products. The company has developed...
Zhao Co. has fixed costs of $245,000. Its single product sells for $155 per unit, and variable costs are $106 per unit. If the company expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales. Dollars Percent Margin of safety % US-Mobile manufactures and sells two products, tablet computers and smartphones, in the ratio of 4:2. Fixed costs are $90,860, and the contribution margin per composite unit is $118. What number...
Finch Corporation sells products for $42 each that have variable costs of $9 per unit. Finch’s annual fixed cost is $759,000. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Break-even point in units Break-even point in dollars
Fanning Corporation sells products for $41 each that have variable costs of $11 per unit. Fanning's annual fixed cost is $711,000. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Break-even point in units Break-even point in dollars