Bessler Brothers manufactures a carbon fiber head scratcher. Below is December 31st data: Sales (118,000 units...
| Bessler Brothers manufactures a carbon fiber head scratcher. Below is December 31st data: | ||||||
| Sales (118,000 units at $5 per unit) | 590,000 | |||||
| Variable expenses | 472,000 | |||||
| Contribution Margin | 118,000 | |||||
| Fixed expenses | 125,000 | |||||
| Net operating loss | (7,000) | |||||
| 4. By automating, the company could reduce its variable expense by 50%, however fixed costs would | |||||||
| increase by $115,000. | |||||||
| a. Compute the new break-even point in (a) sales units and (b) sales dollars. | |||||||
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Bessler Brothers manufactures a carbon fiber head
scratcher. Below is December 31st data:
Sales (118,000 units...
Bessler Brothers manufactures a carbon fiber head scratcher. Below is December 31st data: Sales (118,000 units...
Bessler Brothers manufactures a carbon fiber head scratcher. Below is December 31st data: Sales (118,000 units at $5 per unit) 590,000 Variable expenses 472,000 Contribution Margin 118,000 Fixed expenses 125,000 Net operating loss (7,000) b. Assume the company expects to sell 125,000 units next month. Prepare two contribution format income statements, (1) assuming that operations are not automated, (the only change is units), and (2) a statement reflecting the automation (reduce variable by 50% and increase fixed by $115,000).
Wesley Company manufactures and sells a single product. The company's sales and expenses for | quarter...
Wesley Company manufactures and sells a single product. The company's sales and expenses for | quarter follow: Sales Less: Variable expenses Total $120,000 72,000 Per Unit $20 12 Contribution margin 48,000 $ 8 Less: Fixed expenses 30,000 Net operating income $ 18,000 Required: 1. What is the quarterly break-even point in units sold and in sales dollars? Break-even point in units sold Break-even point in sales dollars / $ 3,750 75,000 2. Without resorting to computations, calculate the total contribution...
Bauer Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales...
Bauer Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $100. Variable costs Manufacturing $ 30 per unit Selling 12 per unit Fixed costs Manufacturing $ 360,000 per year Selling and administrative $ 162,000 per year Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a...
Munoz Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales...
Munoz Manufacturing Company reported the following data
regarding a product it manufactures and sells. The sales price is
$46.
Required
Use the per-unit contribution margin approach to determine the
break-even point in units and dollars.
Use the per-unit contribution margin approach to determine the
level of sales in units and dollars required to obtain a profit of
$182,500.
Suppose that variable selling costs could be eliminated by
employing a salaried sales force. If the company could sell 21,600
units, how...
Campbell Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales...
Campbell Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $42. $ 14 per unit 4 per unit Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative $169,000 per year $135,800 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a...
Fanning Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales...
Fanning Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $46. $ 10 per unit 4 per unit Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative $164,000 per year $ 261,600 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain...
Adams Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales...
Adams Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $50. 11 per unit 4 per unit Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative $168,000 per year $273,000 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit...
Solomon Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales...
Solomon Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $50. $ 11 per unit 7 per unit Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative $ 161,000 per year $274,200 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain...
Solomon Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales...
Solomon Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $44. Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative 16 per unit 3 per unit $160,000 per year $172,500 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit...
Gibson Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales...
Gibson Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $44 Variable costs Manufacturing Selling 11 per unit 7 per unit Fixed costs Manufacturing Selling and administrative $160,000 per year $180,600 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit...
Wesley Company manufactures and sells a single product. The company's sales and expenses for | quarter follow: Sales Less: Variable expenses Total $120,000 72,000 Per Unit $20 12 Contribution margin 48,000 $ 8 Less: Fixed expenses 30,000 Net operating income $ 18,000 Required: 1. What is the quarterly break-even point in units sold and in sales dollars? Break-even point in units sold Break-even point in sales dollars / $ 3,750 75,000 2. Without resorting to computations, calculate the total contribution...
Munoz Manufacturing Company reported the following data
regarding a product it manufactures and sells. The sales price is
$46.
Required
Use the per-unit contribution margin approach to determine the
break-even point in units and dollars.
Use the per-unit contribution margin approach to determine the
level of sales in units and dollars required to obtain a profit of
$182,500.
Suppose that variable selling costs could be eliminated by
employing a salaried sales force. If the company could sell 21,600
units, how...
Campbell Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $42. $ 14 per unit 4 per unit Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative $169,000 per year $135,800 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a...
Fanning Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $46. $ 10 per unit 4 per unit Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative $164,000 per year $ 261,600 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain...
Adams Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $50. 11 per unit 4 per unit Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative $168,000 per year $273,000 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit...
Solomon Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $50. $ 11 per unit 7 per unit Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative $ 161,000 per year $274,200 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain...
Solomon Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $44. Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative 16 per unit 3 per unit $160,000 per year $172,500 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit...
Gibson Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $44 Variable costs Manufacturing Selling 11 per unit 7 per unit Fixed costs Manufacturing Selling and administrative $160,000 per year $180,600 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit...
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