Question

Assume a sales price per unit of $20, variable cost per unit of $16, and total...

Assume a sales price per unit of $20, variable cost per unit of $16, and total fixed costs of $168,000. What is the breakeven point?

a. 420,000 units

b. $420,000

c. 840,000 units

d. $840,000

(answer a is incorrect; also please show all steps in calculating the correct answer)

0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
Assume a sales price per unit of $20, variable cost per unit of $16, and total...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Assume a sales price per unit of $20, variable cost per unit $16, and total fixed...

    Assume a sales price per unit of $20, variable cost per unit $16, and total fixed costs of $208320. What is the breakeven point in units? 52000 units O 5787 units 0 13020 units 10416 units Sve for later Attempts: 0 of 1 used Submit Answer

  • assume a sales price per unit of $25 variable cost per unit $15 and total fixed...

    assume a sales price per unit of $25 variable cost per unit $15 and total fixed costs of $15480. what is the breakeven point in dollars

  • Assume a sales prise per unit of $25. variable cost per unit $15, and total fixed...

    Assume a sales prise per unit of $25. variable cost per unit $15, and total fixed costs of $20880. If no units are sold, how much cost would the company incur? The amount of variable costs at the breakeven point. $31320 O $20880 Sveforster Attempts: 0 of 1 used Submit Answer

  • 4. When the selling price per unit and variable costs per unit remain constant, if total...

    4. When the selling price per unit and variable costs per unit remain constant, if total fixed costs decrease, which of the following statements is true? A. Breakeven point in units increases. C. Breakeven point in units decreases B. Contribution margin decreases. D. Contribution margin increases. lace Furniture sells two products, tables and chairs. A table sells for $80 per unit riable costs of $25 per unit. A chair sells for $60 per unit with variable costs of Total fixed...

  • I. A company sells a product which has a unit sales price of $10, unit variable...

    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...

  • Assume the average unit sales price is $2.00 and the average unit cost is $1.10 for...

    Assume the average unit sales price is $2.00 and the average unit cost is $1.10 for beverages. Fixed costs for the business are $90,000 per year. What is the breakeven point in unit sales? What is the breakeven point in total sales dollars? How much profit would they make if the sales price increased by 8% per unit, but all variable & fixed costs remained the same? How much profit would they make if they increased sales volume by 10%...

  • 2. Data: Selling price = $50, variable cost per unit = $30, total fixed costs =...

    2. Data: Selling price = $50, variable cost per unit = $30, total fixed costs = $400,000, and target profit = $100,000. a. Calculate the breakeven point in units using the equation method. b. Calculate the breakeven point in units using the formula method. c. Calculate the sales in units needed to earn the target profit. d. Calculate the total sales dollars needed to earn the target profit. Show all calculations,

  • 6. Assume total fixed costs of $249600, variable costs per unit of $6, and contribution margin...

    6. Assume total fixed costs of $249600, variable costs per unit of $6, and contribution margin per unit of $4. What are the sales dollars required to earn a target net income of $78000 assuming a tax rate of 20%? A. $546000 B. $867750 C. $780000 D. $819000 6. Assume a sales price per unit of $20, variable cost per unit $10, and total fixed costs of $16200. If no units are sold, how much cost would the company incur?...

  • Assume a selling price of $20 per unit, variable cost per unit of $12, and total...

    Assume a selling price of $20 per unit, variable cost per unit of $12, and total fixed cost of $500. If 200 units are sold, calculate the contribution margin and the operating income.

  • Please explain the steps! QUESTION1 Berhannan's Cellular sells phones for $100. The unit variable cost per...

    Please explain the steps! QUESTION1 Berhannan's Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10%, Fixed manufacturing costs total $1,250 per month, while fixed selling and administrative costs total $2,500. A. What is the contribution (gross margin) per phone? B. What is the breakeven point in phones? How many phones must be sold to earn a targeted profit of $7,500? c. QUESTION 2 Following information is related to sales mix...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT