Question

What is the break-even point in terms of number of finished good units for purchasing another...

What is the break-even point in terms of number of finished good units for purchasing another machine at Station #3 if the projected selling price is $224 per finished good unit? For variable cost, use only the raw material cost and no interest or other costs.

Additional info:

Machine price: $142,500   

Inventory: Delivered every 4 days, $50 per unit, $1000 per order

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Given that, Seling price = SP = $224 per unit

Fixed cost = $142,500

Variable cost per unit = $50 per unit

Let the Breakeven quantity = P

In the condition of Breakeven,

Total Revenue = Total cost

Selling price per unit x Quantity = Fixed cost + (Variable cost per unit x Quantity)

224P = 142500 + 50P

174P = 142500

P = Breakeven Quanity = 818.96 Units or 819 Units (Approx.)

Add a comment
Know the answer?
Add Answer to:
What is the break-even point in terms of number of finished good units for purchasing another...
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
  • 2. Assume if the company uses the new material, determine its new break-even point in both...

    2. Assume if the company uses the new material, determine its new break-even point in both sales units and sales dollars of each individual product. (Round composite units up to next whole number.) 2. Determine its break-even point in both sales units and sales dollars of each individual product Determine the selling price per composite unit. Ratio Selling price per unit Total per composite unit Red 4 White 5 Blue 2 Determine the variable costs per composite unit. Ratio Variable...

  • Need help with the accounting problem. Problem 21-7A Break-even analysis with composite units LO P4 Patriot...

    Need help with the accounting problem. Problem 21-7A Break-even analysis with composite units LO P4 Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $53; white, $83; and blue, $108. The per unit variable costs to manufacture and sell these products are red, $38; white, $58; and blue, $78. Their sales mix is reflected in a ratio of 5:4:2 (red:white:blue). Annual fixed costs shared by all three products are $148,000. One type...

  • 18. What is the profit at 100,000 units above break even? 19. What is the margin...

    18. What is the profit at 100,000 units above break even? 19. What is the margin of safety at 1000 units above break even? 20. What is the sales volume required to give $100,000 profit before tax? 21. What is the sales volume required to give $180,000 after tax, assuming a tax rate of 40%? Child's Play Company makes a plastic rattle for toddlers. The rattle is generally marketed through exclusive retailers located in upscale shopping malls. The company used...

  • Break-Even Point Hilton Enterprises sells a product for $61 per unit. The variable cost is $28...

    Break-Even Point Hilton Enterprises sells a product for $61 per unit. The variable cost is $28 per unit, while fixed costs are $228,690. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $70 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $70 per unit units Break-Even Point Hilton Enterprises sells a product for $61 per unit. The variable...

  • Break-Even Point Hilton Enterprises sells a product for $119 per unit. The variable cost is $68...

    Break-Even Point Hilton Enterprises sells a product for $119 per unit. The variable cost is $68 per unit, while fixed costs are $436,968. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $124 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $124 per unit units reak-Even Point Hilton Enterprises sells a product for $119 per unit. The variable...

  • Break-Even Point Nicolas Enterprises sells a product for $62 per unit. The variable cost is $41...

    Break-Even Point Nicolas Enterprises sells a product for $62 per unit. The variable cost is $41 per unit, while fixed costs are $79,380. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $71 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $71 per unit units

  • Break-Even Point Radison Enterprises sells a product for $113 per unit. The variable cost is $66...

    Break-Even Point Radison Enterprises sells a product for $113 per unit. The variable cost is $66 per unit, while fixed costs are $351,231 Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $119 per unit a. Break-even point in sales units b. Break-even point if the selling price were increased to $119 per unit units units

  • Break-Even Point Radison Enterprises sells a product for $68 per unit. The variable cost is $41...

    Break-Even Point Radison Enterprises sells a product for $68 per unit. The variable cost is $41 per unit, while fixed costs are $99,144. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $75 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $75 per unit units

  • Break-Even Point Hilton Enterprises sells a product for $62 per unit. The variable cost is $42...

    Break-Even Point Hilton Enterprises sells a product for $62 per unit. The variable cost is $42 per unit, while fixed costs are $58,000. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $71 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $71 per unit units

  • Break-Even Point Nicolas Enterprises sells a product for $99 per unit. The variable cost is $45...

    Break-Even Point Nicolas Enterprises sells a product for $99 per unit. The variable cost is $45 per unit, while fixed costs are $734,832. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $108 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $108 per unit units

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