Question

Wallace Incorporated sells its products for $550 per unit. Variable costs are currently 20% of sales revenue. Fixed expe...

Wallace Incorporated sells its products for $550 per unit. Variable costs are currently 20% of sales revenue. Fixed expenses are $198,000 per year.

What is the breakeven point in units at the current selling price?

440 units

1800 units

450 units

300 units

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

Variable expenses=550*20%=110

Contribution margin=Sales-Variable cost

=550-110=$440

Hence breakeven=Fixed cost/Contribution margin

=198,000/440

=450 units.

Add a comment
Know the answer?
Add Answer to:
Wallace Incorporated sells its products for $550 per unit. Variable costs are currently 20% of sales revenue. Fixed expe...
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
  • Wallace Incorporated sells its products for $510 per unit. Variable costs are currently 30% of sales...

    Wallace Incorporated sells its products for $510 per unit. Variable costs are currently 30% of sales revenue. Fixed expenses are $174,930 per year. What is the breakeven point in units at the current selling price? O A. 357 units O B. 264 units O C. 490 units OD. 1,144 units Click to select your answer.

  • Deen Enterprises currently sells its products for $1600 per unit. Management is contemplating a 20% increase...

    Deen Enterprises currently sells its products for $1600 per unit. Management is contemplating a 20% increase in the selling price for the next year. Variable costs are currently 30% of sales revenue and are not expected to change next year. Fixed expenses are $280,800 per year. What is the breakeven point in units at the anticipated selling price per unit next year? 480 units 195 units 1755 units 117 units

  • Management at the Forrest Company currently sells its products for $275 per unit and is contemplating a 40% increase in...

    Management at the Forrest Company currently sells its products for $275 per unit and is contemplating a 40% increase in the selling price for the next year. Variable costs are currently 15% of sales revenue and are not expected to change in dollar amount on a per unit basis next year (the company will still pay the same variable cost per unit). Fixed expenses are $142,500 per year. If fixed costs were to decrease 10% during the current year and...

  • Grosheim Incorporated has fixed expenses of $212,500 per year. Right now. Grosheim Incorporated is selling its...

    Grosheim Incorporated has fixed expenses of $212,500 per year. Right now. Grosheim Incorporated is selling its products for $300 per unit. Management is contemplating a 40% increase in the selling price for the next year. Variable costs are currently 30% of sales revenue and are not expected to change in dollar amount on a per unit basis next year (the company will pay the same amount for variable costs next year) If fixed costs increase 10% next year, and the...

  • #1 Martin Compary currently sells its products for $240 per unit Management is contemplating a 40...

    #1 Martin Compary currently sells its products for $240 per unit Management is contemplating a 40 % increase in the selling price for the next year. Variable costs are curently 10% of sales revenue and are not expected to change naxt year Fixed expenses are $130,000 per year f foed costs inrease 20% next year, and the new solling price per unit goes into effect, how many units will need to be sold to breakeven? OA 500 units OB. 433...

  • 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...

  • Preston Milled products currently sells a product with a variable cost per unit of $16 and...

    Preston Milled products currently sells a product with a variable cost per unit of $16 and a unit selling price of $41. At the present time, the firm only sells on a cash basis with monthly sales of 400 units. The monthly interest rate is 1.2 percent. What is the switch break-even point if the firm switched to a net 30 credit policy? Assume the selling price per unit and the variable costs per unit remain constant

  • Megan Company has fixed costs of $1,675,000. The unit selling price, variable cost per unit, and...

    Megan Company has fixed costs of $1,675,000. The unit selling price, variable cost per unit, and contribution margin per unit for the two company's follow: Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,675,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Model Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $880 $440 $440 Zoro 620 480 The sales mix for products...

  • 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...

  • at $1.00 each. Fixed costs are $900.000 per year. Variable costs per unit equal $0.4 per...

    at $1.00 each. Fixed costs are $900.000 per year. Variable costs per unit equal $0.4 per pencil. Jaguar Manufacturing produces and sells pencils. Currently, 5,000,000 pencils are sold per year 2. Compute the operating income and breakeven point in revenues for the following independent oblem 4 [19 Points) Required: 1. (a) What is the current annual operating income? [3 points] (b) What is the current breakeven point in revenues? (4 points) cases: (a) A 10% increase in fixed costs. [5...

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