Solve using the Break even analysis, state each variable such as F, for fixed cost or TV, for total variable cost.
Homework Answers
| selling price per unit | 100 | ||
| variable cost per Unit (material and labor cost) | 50 | ||
| contribution margin per unit | 100-50 | 50 | |
| annual operating cost or total fixed cost | 300000 | ||
| break even point in units | annual operating cost/contribution margin per unit | 300000/50 | 6000 |
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Solve using the Break even analysis, state each variable such as
F, for fixed cost or...
Chapter 3 - Journal Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations...
Chapter 3 - Journal Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations where Profit equals zero. EXERCISE 1: Abner Corporation makes a product that sells for $200 per unit. The Variable Costs per unit are $120. Fixed Costs total $500,000 each year. Abner currently sells 7,500 units per year. Calculate the number of units that Abner must sell to break even. Use the equation method to solve for the number of units Abner needs to sell...
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,614,000. The unit selling price, variable cost per...
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,614,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price Variable Cost per Unit Contribution Margin per Unit Q $640 $320 $320 Z 340 220 120 The sales mix for products Q and Z is 40% and 60%, respectively. Determine the break-even point in units of Q and Z. If required, round your answers...
5 Q080 Break Even Analysis Page 159 Total Cost variable cost + fixed cost Break even...
5 Q080 Break Even Analysis Page 159 Total Cost variable cost + fixed cost Break even when revenue = cost. Profit = revenue - cost A company manufactures a dish washer that sells to retailers for $550. R(x)=550 ** The cost of making x of these dish washer is given by the cost function C(x)=240x+1560 a. Write the revenue function and determine the revenue if 43 are sold. 3 points b. Determine the profit function. What is the profit if...
Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target Income...
Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target Income Werner Company produces and sells disposable foil baking pans to retailers for $2.75 per pan. The variable cost per pan is as follows: Direct materials Direct labor $0.37 0.63 Variable factory overhead Variable selling expense 0.53 0.12 Fixed manufacturing cost totals $111,425 per year. Administrative cost (all foxed) totals $48,350. Unless otherwise instructed, round all total doilar figures (eg. sales, total contribution-margin) to the...
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $592,000. The unit selling price, variable cost per...
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $592,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $210 $110 210 $100 100 zz 310 The sales mix for Products QQ and ZZ is 40% and 60%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the...
Break-Even Analysis Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to...
Break-Even Analysis Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to cover costs or to make revenue equal costs. It is helpful in setting prices, estimating profit or loss potentials, and determining the discretionary costs that should be incurred. The general formula for calculating break-even units is Break-Even Units = Total Fixed Costs / ( Unit Selling Price − Unit Variable Cost ) 1. Use the formula to calculate how many cups of coffee an...
break-even analysis ms 13-1 BREAK-EVEN ANALYSIS A company's fixed operating costs are $430,000, its variable costs...
break-even analysis
ms 13-1 BREAK-EVEN ANALYSIS A company's fixed operating costs are $430,000, its variable costs are $2.95 per unit, and the product's sales price is $4.50. What is the company's break-even point; that is, at what unit sales volume will its income equal its costs?
What is the break-even point in units when you have a total fixed cost of $500,000,...
What is the break-even point in units when you have a total fixed cost of $500,000, a unit-selling price of $16 and a unit variable cost of $8? Calculate the Breakeven Point in Total Units. Answer: 62,500 66,500 31,500 Answer to the previous question is profit $62,500 In the above problem what would be the volume of sale units if the firm wanted to have a profit of $1,000,000? Calculate the Volume Point in Total Units. A.162,500 B.187,500 C.150,000
3. provide the break-even chart for: Revenue (price) = $10/item Variable cost = $8/item Fixed cost...
3. provide the break-even chart for: Revenue (price) = $10/item Variable cost = $8/item Fixed cost = $200 Revenue: Y = 10X VC: Y = 8X FC: Y = 200 Profit = revenue - (total cost) 4. provide the break-even chart for: revenue (price) = $15/item variable cost = $20/item fixed cost = $1000 revenue: Y = 15X VC: Y = 20X FC: Y = 1000 Profit = Revenue - (total cost)
Problem 4-31 Changes in Cost Structure; Break-Even Analysis; Indifference (L04, LOS, LO6] Patterson Products Inc. is...
Problem 4-31 Changes in Cost Structure; Break-Even Analysis; Indifference (L04, LOS, LO6] Patterson Products Inc. is considering an upgrade to its manufacturing equipment. The two upgrade options under consideration are shown below. Direct material cost per unit Direct labour cost per unit Variable overhead per unit Fixed manufacturing costs Option 1 61.2 48 13.2 $ 2,070,000 Option 2 $ 40.8 $ 41 $ 33.8 $ 4,008,000 The selling price of the company's product is $204 per unit with variable selling...
Chapter 3 - Journal Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations where Profit equals zero. EXERCISE 1: Abner Corporation makes a product that sells for $200 per unit. The Variable Costs per unit are $120. Fixed Costs total $500,000 each year. Abner currently sells 7,500 units per year. Calculate the number of units that Abner must sell to break even. Use the equation method to solve for the number of units Abner needs to sell...
5 Q080 Break Even Analysis Page 159 Total Cost variable cost + fixed cost Break even when revenue = cost. Profit = revenue - cost A company manufactures a dish washer that sells to retailers for $550. R(x)=550 ** The cost of making x of these dish washer is given by the cost function C(x)=240x+1560 a. Write the revenue function and determine the revenue if 43 are sold. 3 points b. Determine the profit function. What is the profit if...
Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target Income Werner Company produces and sells disposable foil baking pans to retailers for $2.75 per pan. The variable cost per pan is as follows: Direct materials Direct labor $0.37 0.63 Variable factory overhead Variable selling expense 0.53 0.12 Fixed manufacturing cost totals $111,425 per year. Administrative cost (all foxed) totals $48,350. Unless otherwise instructed, round all total doilar figures (eg. sales, total contribution-margin) to the...
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $592,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $210 $110 210 $100 100 zz 310 The sales mix for Products QQ and ZZ is 40% and 60%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the...
break-even analysis
ms 13-1 BREAK-EVEN ANALYSIS A company's fixed operating costs are $430,000, its variable costs are $2.95 per unit, and the product's sales price is $4.50. What is the company's break-even point; that is, at what unit sales volume will its income equal its costs?
Problem 4-31 Changes in Cost Structure; Break-Even Analysis; Indifference (L04, LOS, LO6] Patterson Products Inc. is considering an upgrade to its manufacturing equipment. The two upgrade options under consideration are shown below. Direct material cost per unit Direct labour cost per unit Variable overhead per unit Fixed manufacturing costs Option 1 61.2 48 13.2 $ 2,070,000 Option 2 $ 40.8 $ 41 $ 33.8 $ 4,008,000 The selling price of the company's product is $204 per unit with variable selling...
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