12 Our company currenty makes and sells two products: A and B. The relative number of production and sales between Aand B is 2:3. In other words, each time the company produces and sells two units of product A, it produces and sells threeunits of product B. The following cost information is available:CompanyAВUnit Selling Price$11$15Unit Varible Cost$5$7Total fixed expenses$15,000How much sales volume does the company need to make from Product B if it wants to achieve $3,000 profits?(Do not round intermediate calculations. Round the final answer to the nearest units.)А.1,500 unitsВ.1,340 unitsC.893 unitsD.1,000 unitsЕ.None of the above

The Break-even point indicates that total units are to be sold by the business entity to recover its…

12 Our company currenty makes and sells two products: A and B. The relative number of production and sales between A and B is 2:3. In other words, each time the company produces and sells two units of product A, it produces and sells three units of product B. The following cost information is available: Company A B Unit Selling Price $11 $15 Unit Varible Cost $5 $7 Total fixed expenses $15,000 How much sales volume does the company need to make from Product B if it wants to achieve $3,000 profits? (Do not round intermediate calculations. Round the final answer to the nearest units.) А. 1,500 units В. 1,340 units 893 units С. D. 1,000 units E. None of the above

12 Our company currenty makes and sells two products: A and B. The relative number of production and sales between A and B is 2:3. In other words, each time the company produces and sells two units of product A, it produces and sells three units of product B. The following cost information is available: Company A B Unit Selling Price $11 $15 Unit Varible Cost $5 $7 Total fixed expenses $15,000 How much sales volume does the company need to make from Product B if it wants to achieve $3,000 profits? (Do not round intermediate calculations. Round the final answer to the nearest units.) А. 1,500 units В. 1,340 units 893 units С. D. 1,000 units E. None of the above

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 14MC: A company produces two products. E and F in batches of 100 units. The production and cost data are:...

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A company produces two products. E and F in batches of 100 units. The production and cost data are: The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product. What is the differential profit from producing product E instead of product F for the year? A. $216,000 B. $204,000 C. $12,000 D. $54,000
Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Their sales mix s reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $25,000 per year. What are total variable costs for Morris with their current product mix? Calculate the number of units of each product that will need to be sold in order for Morris to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.
Abilene Industries manufactures and sells three products (XX, W, and ZZ). The sales price and unit variable cost for the three products are as follows: Their sales mix is reflected as a ratio of 4:2:1. Annual fixed costs shared by the three products are $345.000 per year. What are total variable costs for Abilene with their current product mix? Calculate the number of units of each product that will need to be sold in order for Abilene to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.
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Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and their product has a per-unit contribution margin of $250, how many units must they sell to reach their target income? A.20 B. 40 C. 60 D. 120