Homework Answers
Answer- Option C - 20000 Units is Correct.
Calculations Table as per following:
| Particulars | Amount in $ |
| Selling Price Per Unit | 9 |
| Variable Cost Per Unit | 6 |
| Contribution Per Unit | 3 |
| Fixed Cost | 60,000 |
| Break Even Point -( Fixed Cost/Contribution Per Unit) | 20,000 |
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A company sells a product which has a unit sales price of $5, unit variable cost...
A company sells a product which has a unit sales price of $5, unit variable cost of $3 and costs of $240,000. The number of units the company must sell to break even is ble cost of $3 and total fixed 31. This ONE Henderson Co. has fixed costs of $36,000 and a contribution margin ratio of 24%. If expected sales are $200,000, what is the margin of safety as a percent of sales?!
I. A company sells a product which has a unit sales price of $10, unit variable...
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Air Company sells it product for $120 per unit. Estimated costs for October 2013 are as follows: Cost Variable product costs per unit $60 Variable sales commission per unit 10% of selling price Total fixed production overheads $25,000 Total fixed administrative salaries $15,000 Required: a) Calculate the contribution margin per unit (Hint – you will need to identify the company’s variable costs) b) Calculate the company’s break-even point in units and total sales dollars. c) How many units must be...
29. Webber, Inc. developed the following information for its product: Per Unit Sales price $90 Variable...
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A company sells a product which has a unit sales price of $5, unit variable cost of $3 and costs of $240,000. The number of units the company must sell to break even is ble cost of $3 and total fixed 31. This ONE Henderson Co. has fixed costs of $36,000 and a contribution margin ratio of 24%. If expected sales are $200,000, what is the margin of safety as a percent of sales?!
I. A company sells a product which has a unit sales price of $10, unit variable cost of $5 and total fixed costs of $280,000. The number of units the company must sell to break even is: 2. At the breakeven point of 3.000 units, variable costs are $300,000, and fixed costs are S180,000. How much is the selling price per unit? 3. A company has total fixed costs of $160,000 and a contribution margin ratio of 20%. The total...
Fowler Company produces a product that sells for $200 per unit and has a variable cost of $125 per unit. Fowler incurs annual fixed costs of $450,000 Required a. Determine the sales volume in units and dollars required to break even. (Do not round intermediate calculations.) b. Calculate the break-even point assuming fixed costs increase to $600,000. (Do not round intermediate calculations.) Answer is not complete. 6,000 $ 1,200,000 Sales volume in units Sales in dollars Break-even units Break-even sales...
Q.5 (8 Marks): Webber, Inc. developed the following information for its product: Per Unit Sales price Variable cost Contribution margin $27 $90 63 Total fixed costs $1,215,000 Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers. 1. How many units must be sold to break even? 2. What is the total sales that must be generated for the company to earn a profit of $60,000? 3. If the company is presently...
QUESTION 9 Boomerang company sells a product at $100 per unit that has unit variable costs of $30. The company's break-even sales point in sales dollars is $150,000. How much profit will the company make if it sells 4,000 units? A. $120,000 B. $70,000 C.$175,000 D. $215,000 QUESTION 10 To find the break-even point for a company that sells several products, the analyst must make an assumption about what the sales mix will be and calculate a weighted average contribution...
29. Webber, Inc. developed the following information for its product: Per Unit Sales price $90 Variable cost 63 Boone Contribution margin $27 Total fixed costs $1.215.000 Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers. 1. How many units must be sold to break even? 2. What is the total sales that must be generated for the company to earn a profit of $60,000? 3. If the company is presently selling...
29. Webber, Inc. developed the following information for its product: Per Unit Sales price $90 Variable cost 63 Contribution margin $27 Total fixed costs $1.215.000 Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers. 1. How many units must be sold to break even? 2. What is the total sales that must be generated for the company to earn a profit of $60,000? 3. If the company is presently selling 50,000...
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