8. Merit, Ltd. manufactures a remote control device. The device sells for $25 per unit. The current fixed costs are $75 000 and the current variable cost per unit is $10. Find the new break-even point in units if fixed costs increase by 20%. The other values stay the same.
Q: Alex Miller, Inc., sells car batteries to service stations for an average of $30 each. The variable…
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A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
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A: Degree of Operating Leverage = Contribution margin/ Net Income
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A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: #7 Banachek, Inc. produces hair brushes. The selling price is P20 per unit and the variable…
A: Introduction:- The following formula used to calculate Breakeven point as follows: Breakeven point…
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A: The point where the total of all the FC of the entity is equal to the contribution, known as…
Q: Kyle Inc. is planning to sell 197,500 units of Product K. The fixed costs are P1,200,000 and the…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
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Q: Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $8 while…
A: Current sales = 20000 units Selling Price per unit = $8 Variable Cost Ratio = 20% Fixed Costs…
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A: Formula: Profit = Revenues - Expenses.
Q: In the upcoming year, NUBD estimates that it will produce and sell 4,000 units. The variable costs…
A: Analysis: As per Marginal costing, Margin of safety is the difference between Total sales Amount and…
Q: The new break-even point in units is:
A: Break-Even Point is the point where the entity has no profit/Loss . That is Revenue -Costs = 0…
Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…
A: SOLUTION- BREAK EVEN POINT IS THE POINT WHERE TOTAL COST IS EQUAL TO TOTAL REVENUE I.E THERE IS NO…
Q: A manufacturer predicts fixed costs of $502,000 for the next year. Its one product sells for $180…
A: “Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want…
Q: Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $10 while…
A: Step 1 Calculation of Actual sales in dollar…
Q: how many units must Tony sell to breakeven?
A: Breakeven sales is the sales at which there is no profit or no loss. Breakeven point = Fixed cost/…
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A: Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with…
Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…
A: The break even sales are the sales at point when business earned no profit or loss
Q: Glassman Company sells its one product at $30 per unit. Variable costs are $25 per unit and fixed…
A: Break-even point in units = Fixed costs / (Selling price - Variable costs) Break-even point in sales…
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A: The following information is provided as follows:- Fixed cost per month = P270,000 Variable cost =…
Q: A company needs to sell 10,000 units of its only product in order to break even. Fixed costs are…
A: The correct answer is Option (2).
Q: 11. Chesser Industries manufactures telescopes that sell for $200 each. Variable costs are $120 per…
A: “Hey, since there are multiple questions posted, we will answer first question (11). If you want any…
Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…
A: The Calculation of Profit is as follows: Contribution = Sales - Variable Costs…
Q: Kent Co. manufactures a product that sells for $50.00 and has variable costs of $24.00 per unit.…
A: Contribution margin = Sales - Variable cost
Q: Alex Miller, Inc., sells car batteries to service stations for an average of $30 each. The variable…
A: Break even point can be defined as the production level at which the manufacturing costs is equal to…
Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…
A: Break-Even (in units) = Fixed Costs / Contribution Margin Per Unit Break-Even (in dollars) =…
Q: A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable…
A: Information Provided: Selling price = $50 Variable cost (Chairs) = $25 Variable cost (Bar stools) =…
Q: A small coffee shop currently offers a cup of cafe latte for P107. The variable costs are P62 per…
A: Break Even sales is the point of sales where the firm neither incurs any losses or earns any gains…
Q: Loessing Compan produced and sold 12,000 units last year with sales price of $45 per unit and unit…
A: Since all direct expenses have been deducted from sales, contribution seems to be the amount of…
Q: Shapland Inc. has fixed operating costs of $500,000 and variable costs of $50per unit. If it sells…
A: Given information: Fixed operating costs amounted to $500,000 Variable cost per unit is $50 Selling…
Q: a. What is the break-even point in units? b. What is the break-even point in dollars? c. If Weber…
A: Break-even analysis is one of the most important quantitative techniques that is used in the…
Q: 1. Alex Miller, Inc., sells car batteries to service stations for an average of $30 each. The…
A: Breakeven units Fixed cost / contribution per unit Contribution per unit = Selling price -…
Q: A product sells for $30 per unit and has variable costs of $20 per unit. The fixed costs are…
A: Expected Contribution margin per unit = Expected sales price per unit - Expected variable cost per…
Q: NUBD Company manufactures a face masks that sells for P10 per unit. This is its sole product and it…
A: Solution: Contribution margin per unit = Fixed costs / Breakeven units = P100,000 / 50000 = P2 per…
Q: Chile's, Inc. currently produces and sells 4,000 units of a product that has a contribution margin…
A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…
Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…
A: Under Marginal costing profit is Sales revenue - Total variable cost - Total Fixed cost We know…
Q: A small coffee shop currently offers a cup of cafe latte for P106. The variable costs are P58 per…
A: The Break-even selling price is the price where the organization neither earns any profit nor bears…
Q: A small coffee shop currently offers a cup of cafe latte for P106. The variable costs are P63 per…
A: Here, Number of Units Sold is 10,079 Sales Price per cup is P106 Variable Cost per cup is P63 Profit…
Q: Derby Phones is considering the introduction of a new model of headphones with the following price…
A: Sales (7,000×22) $154,000 Less: Variable costs (7,000×5) 35,000 Contribution margin $119,000…
Q: The variable cost to get the product to customers is $3 per unit, and the price the company charges…
A: Break Even Point is the point where the total costs are recovered at a certain time. Break even is…
Q: The Blue Co. will produce 25,000 units of product next year. Variable costs ratio is 70%, while…
A: Number of units = 25,000 Variable cost ratio = 70% Fixed cost = P 85,000 EBIT = P 60,000 Price =…
Q: A small coffee shop currently offers a cup of cafe latte for P109. The variable costs are P60 per…
A: Break even point means a situation where the is neither profit nor loss. Sales revenue is sufficient…
Q: Dishman Ltd plans to sell 200,000 items a year for £15 each. Fixed costs are £360,000 a year and…
A: Margin of Safety:- It is the difference in the intrinsic value and the market value of the stock. It…
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- Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs per gas grill are 225, and the average price per gas grill is 600. Required: 1. How many gas grills must Gelbart Company sell to break even? 2. If Gelbart Company sells 46,775 gas grills in a year, what is the operating income? 3. If Gelbart Companys variable costs increase to 240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?
- Shelby Industries has a capacity to produce 45.000 oak shelves per year and is currently selling 40,000 shelves for $32 each. Martin Hardwoods has approached Shelby about buying 1,200 shelves for a new project and is willing to pay $26 each. The shelves can be packaged in bulk; this saves Shelby $1.50 per shelf compared to the normal packaging cost. Shelves have a unit variable cost of $27 with fixed costs of $350,000. Because the shelves dont require packaging, the unit variable costs for the special order will drop from $27 per shelf to $25.50 per shelf. Shelby has enough idle capacity to accept the contract. What is the minimum price per shelf that Shelby should accept for this special order?Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.
- Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.
- Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shell. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320.000. However, the $130 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order? A. Profits will decrease by $1,200. B. Profits will increase by $31,200. C. Profits will increase by $600. D. Profits will increase by $7,200.
