Calculate Break Even when a given profit is required DATA Fixed Costs Fixed Factory Overhead =...
Calculate Break Even when a given profit is required
- DATA
-
- Fixed Costs
- Fixed Factory Overhead = $63,000
- Fixed Selling overhead = $10,000
- Variable Costs
- Variable Manufacturing costs = $30
- Variable selling cost per unit = $5
- Cost Per Unit = $100
- Profit of $12,000 is required
- Fixed Costs
- Calculate the CM
- Calculate the CM %
- Calculate Break Even Point
-
Homework Answers
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Calculate Break Even when a given profit is
required
DATA
Fixed Costs
Fixed Factory Overhead =...
2) Contribution Margin DATA Fixed Costs Fixed Factory Overhead = $50,000 Fixed Selling overhead = $10,000...
2) Contribution Margin DATA Fixed Costs Fixed Factory Overhead = $50,000 Fixed Selling overhead = $10,000 Variable Costs Variable Manufacturing costs = $10 Variable selling cost per unit = $4 Cost Per Unit = $35 Calculate the CM Calculate the CM % Note: the selling price is not given How can we find the selling price by giving info
Basic Break-Even Calculations Suppose that Adams Company sells a product for $22.00. Unit costs are as...
Basic Break-Even Calculations Suppose that Adams Company sells a product for $22.00. Unit costs are as follows: Direct materials $3.80 Direct labour 1.40 Variable factory overhead 2.30 Variable selling and administrative expense 1.40 Total fixed factory overhead is $74,840 per year, and total fixed selling and administrative expense is $54,195. Required: 1. Calculate the variable cost per unit and the contribution margin per unit. Round your answers to the nearest cent and use rounded amounts in subsequent requirements. Variable cost...
Break-Even Point and Target Profit Measured in Units (Single Product). Nellie Company has monthly fixed costs...
Break-Even Point and Target Profit Measured in Units (Single Product). Nellie Company has monthly fixed costs totaling S100,000 and variable costs of $20 per unit. Each unit of product is sold for $25. Required: Calculate the contribution margin per unit Find the break-even point in units. How many units must be sold to earn a monthly profit of $40,000?
1) At the break even point of 400 units, variable cost were $400 and fixed costs...
1) At the break even point of 400 units, variable cost were $400 and fixed costs were $200. how much will the 401st unit sold contribute to operating profit before income taxes? 2) Break even would not change if : a) sales price increases, b) fixed cost decrease, c) sales volume decrease, d) variable cost per unit increase 3) what is break even point in dollars? sales price: $100, variable cost per unit: $40, total fixed cost :$ 120,000 4)...
From the data provided herein calculate the break-even point and turnover (sales revenue) required to earn...
From the data provided herein calculate the break-even point and turnover (sales revenue) required to earn a profit of sh.36,000 after tax. Tax is at the rate of 40% of net income before taxes. Sh. Fixed cost 180,000 Variable cost per unit 2 Selling price 20 b. if the company earns a profit of sh.36,000 express the margin of safety available to company.
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...
EXERCISES: Set A (continued) 30. Break-Even Point and Target Profit Measured in Units (Multiple Products a....
EXERCISES: Set A (continued) 30. Break-Even Point and Target Profit Measured in Units (Multiple Products a. Start by calculating the contribution margin for each product Sweater contribution margin- Jacket contribution margin- per unit per unit Then, calculate the weighted average contribution margin per unit: Weighted average contribution margin per unit = ) + ( b. The break-even point in units is calculated as: c. Break-even point in units for each product is: Sweater Jacket Total units (= units (= units...
APPLY THE CONCEPTS: Calculate the break-even point in sales dollars for Lennon Products Further analysis of...
APPLY THE CONCEPTS: Calculate the break-even point in sales dollars for Lennon Products Further analysis of Lennon Products’s fixed costs revealed that the company actually faces annual fixed overhead costs of $9,800 and annual fixed selling and administrative costs of $4,200. Variable cost estimates are correct: direct materials cost, $4.00 per unit; direct labor costs, $5.00 per unit; and variable overhead costs, $1.00 per unit. At this time, the selling price of $20 will not change. Complete the following formulas...
Activity 13.3 - Price Calculation – Breakeven Pricing Often a firm will calculate the break-even point...
Activity 13.3 - Price Calculation – Breakeven Pricing Often a firm will calculate the break-even point for a price. That is, if we set the price at $X, then how many units will we need to sell to cover costs (that is, our break-even point). Work through the following two examples to gain a better understanding of this approach. Fixed Costs = $10,000 Variable Costs = $10 Using break-even analysis calculate: 1. How many units need to be sold to...
APPLY THE CONCEPTS: Calculate the break-even point in sales dollars for Epstein Hardware Further analysis of Epstein Har...
APPLY THE CONCEPTS: Calculate the break-even point in sales dollars for Epstein Hardware Further analysis of Epstein Hardware’s fixed costs revealed that the company actually faces annual fixed overhead costs of $9,800 and annual fixed selling and administrative costs of $4,200. Variable cost estimates are correct: direct materials cost, $4.00 per unit; direct labor costs, $5.00 per unit; and variable overhead costs, $1.00 per unit. At this time, the selling price of $20 will not change. Complete the following formulas...
Basic Break-Even Calculations Suppose that Adams Company sells a product for $22.00. Unit costs are as follows: Direct materials $3.80 Direct labour 1.40 Variable factory overhead 2.30 Variable selling and administrative expense 1.40 Total fixed factory overhead is $74,840 per year, and total fixed selling and administrative expense is $54,195. Required: 1. Calculate the variable cost per unit and the contribution margin per unit. Round your answers to the nearest cent and use rounded amounts in subsequent requirements. Variable cost...
Break-Even Point and Target Profit Measured in Units (Single Product). Nellie Company has monthly fixed costs totaling S100,000 and variable costs of $20 per unit. Each unit of product is sold for $25. Required: Calculate the contribution margin per unit Find the break-even point in units. How many units must be sold to earn a monthly profit of $40,000?
EXERCISES: Set A (continued) 30. Break-Even Point and Target Profit Measured in Units (Multiple Products a. Start by calculating the contribution margin for each product Sweater contribution margin- Jacket contribution margin- per unit per unit Then, calculate the weighted average contribution margin per unit: Weighted average contribution margin per unit = ) + ( b. The break-even point in units is calculated as: c. Break-even point in units for each product is: Sweater Jacket Total units (= units (= units...
Activity 13.3 - Price Calculation – Breakeven Pricing Often a firm will calculate the break-even point for a price. That is, if we set the price at $X, then how many units will we need to sell to cover costs (that is, our break-even point). Work through the following two examples to gain a better understanding of this approach. Fixed Costs = $10,000 Variable Costs = $10 Using break-even analysis calculate: 1. How many units need to be sold to...
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