1. If a company has fixed costs of $4,500,000; variable costs of $1375 per item; and...
Homework Answers
Answer:
Break Even Point (in Units) = Fixed Cost / Contribution Margin
per Unit
Contribution Margin per Unit = Unit Sales Price – Unit Variable
Cost
Contribution Margin per Unit = $5,000 - $1,375
Contribution Margin per Unit = $3,625
Break Even Point (in Units) = $4,500,000 / $3,625
Break Even Point (in Units) = 1,241.37 or 1,241
Units
Add Answer to:
1.
If a company has fixed costs of $4,500,000;
variable costs of $1375
per item; and...
3) a company has fixed costs of $50,000 and variable costs of $2 per item. What...
3) a company has fixed costs of $50,000 and variable costs of $2 per item. What will happen to the break even point if they lower their fixed costs to $30,000 and increase their variable cost to $3 per item? Assume the sales price per item is $6. Which situation is better for the economy if the economy is predicted to be weak in the near future?
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Cohen Company produces and sells socks. Variable cost is $2.00 per pair, and fixed costs for...
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BOOK Calculator Print Item Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense...
BOOK Calculator Print Item Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Unless otherwise instructed, round all total dollar figures (e.g. sales, total contribution margin) to the nearest dollar, breakeven or target units to the nearest unit, and unit costs and unit contribution margins to the nearest cent. Round ratios to four significant digits. Required: 1. At the break-even point, Jefferson Company sells 115,000 units...
Stones Manufacturing, sells a marble slab for $1500. Fixed costs are $31,000, while the variable costs...
Stones Manufacturing, sells a marble slab for $1500. Fixed costs
are $31,000, while the variable costs are $450 per slab. The
company currently plans to sell 240 slabs this month. What is the
margin of safety assuming 75 slabs are budgeted?
$207,714.286
$31,000
$68,214.2857
$315,714.286
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Southwestern College is planning to hold a fund raising banquet at
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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...
The Virginia Company has fixed costs of $100,000 per month, and variable costs of $30 per...
The Virginia Company has fixed costs of $100,000 per month, and variable costs of $30 per unit of output. The sales price is $50 per unit of output. How many units would the company have to sell per month, to generate profits of $30,000 per month?
3) a company has fixed costs of $50,000 and variable costs of $2 per item. What will happen to the break even point if they lower their fixed costs to $30,000 and increase their variable cost to $3 per item? Assume the sales price per item is $6. Which situation is better for the economy if the economy is predicted to be weak in the near future?
Cohen Company produces and sells socks. Variable cost is $2.00 per pair, and fixed costs for the year total $50,000. The selling price is $4 per pair. Required: 1. Calculate the breakeven point in units. (Do not round intermediate calculations.) 2. Calculate the breakeven point in sales dollars. (Do not round intermediate calculations.) 3. Calculate the units required to make a before-tax profit of $30,000. (Do not round intermediate calculations.) 4. Calculate the sales dollars required to make a before-tax...
BOOK Calculator Print Item Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Unless otherwise instructed, round all total dollar figures (e.g. sales, total contribution margin) to the nearest dollar, breakeven or target units to the nearest unit, and unit costs and unit contribution margins to the nearest cent. Round ratios to four significant digits. Required: 1. At the break-even point, Jefferson Company sells 115,000 units...
Stones Manufacturing, sells a marble slab for $1500. Fixed costs
are $31,000, while the variable costs are $450 per slab. The
company currently plans to sell 240 slabs this month. What is the
margin of safety assuming 75 slabs are budgeted?
$207,714.286
$31,000
$68,214.2857
$315,714.286
Answer the following questions using the information
below:
Southwestern College is planning to hold a fund raising banquet at
one of the local country clubs. It has two options for the
banquet:
Southwestern College has...
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...
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