A factory engaged in the fabrication of an automobile part with a production capacity of 600,000 units per year is only operating 60% capacity due to unavailability of materials. The annual income is P400,000, annual fixed costs are P180,000 and variable costs are P0.35 per unit. What is the break-even point?

Q: Night Shades, Incorporated, manufactures biotech sunglasses. The variable materials cost is $12.14…

A: Please refer to the image below.

Q: CNR Computer is considering moving some of its operations overseas in order to reduce labour costs.…

A: Production Cost- Production costs are the expenses incurred by a manufacturer while producing a…

Q: Machine A has a fixed cost of P40,000 per year and a variable cost of P6 per unit. Machine B has an…

A: Since both machines break even at 2,000 units, total cost of both Machines will be equal at…

Q: A business is operating at 90% of capacity and is currently purchasing a part used in its…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: This year Burchard Company sold 40,000 units of its only product for $25 per unit. Manufacturing and…

A:

Q: A certain company has the capacity to produce 500,000 units of a product yearly. This year, the…

A: Answer - Formula for Break even Point -  Break even Point = Fixed Cost/ (Sales price per unit -…

Q: The annual variable production costs for a plant operates at 70% capacity are $600,000 while the sum…

A: Workings: 1) Computation of income statement at 70% capacity Particulars Amount $ Per unit $…

Q: Desert Industries manufactures 5,000 units of Part X300 each month for use in production. The…

A: Make or buy decision: This type of decision is generally considered when a component can be bought…

Q: manufacturing overhead costs. if the special order is accepted, variable selling costs would…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: A factory with capacity of 700,000 units per year operates at 62% capacity. The annual income is…

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: A bike manufacturing company has fixed costs of $165,000 per annum and the variable costs are 48% of…

A: Calculate contribution margin per unit, if variable costs increased to 56% of sales.Contribution…

Q: A company has annual fixed cost of Php 600,000 and a breakeven point at 42% of capacity. The ratio…

A: Contribution margin analysis is used to determine the various sales level. It mainly helps the firm…

Q: Mitchell Company manufactures a product with a unit variable cost of $50 and a unit sales price of…

A: As accepting the special order will not affect the fixed cost and the present sales (given), so the…

Q: Boo Company has just completed the first month of producing a new product but has not yet shipped…

A: Break even point means a situation where the is neither profit nor loss. Sales revenue is sufficient…

Q: Company XYZ produced 1,000 units of product A. At this level, the variable manufacturing costs were…

A: Interpretation of the data: Units produced=1000 Units Variable Manufacturing Cost= OMR 120,000 Units…

Q: ach unit of Product X sells for $8 and has a contribution margin of $5. If Product X is…

A: The company produces 5000 units of Product X which contributes $ 5 per unit of contribution . If the…

Q: Acme Corp has fixed has fixed overhead of $250,000 for its plant and salaries of $350,000. It sells…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: A company has already incurred $5,000 of costs in producing 6,000 units of Product XY. Product XY…

A: Given: Current selling price = $15 Further processing cost = $8 Selling price after further…

Q: Sage Company is operating at 90% of capacity and is currently purchasing a part used in its…

A: TOTAL UNITS :  = 30,000 UNITS    VARIABLE COST :  = $11 PER UNIT   PURCHASE COST :  = $15 PER UNIT…

Q: Lusk Corporation produces and sells 15,000 units of Product X each month. The selling price of…

A: Solution: Contribution margin lost if discontinued = CM per unit * units = (40-32)*15000 = 120,000

Q: A company that manufactures monitors has fixed costs of $78,000 per annum. The variable costs are…

A: According to the question we need to calculate the original sales revenue, it can be calculated by…

Q: Orion Inc., is a newly organized manufacturing business that plans to manufacture and sell 30,000…

A: Contribution is the difference between the sales price and variable cost Contribution = Sales -…

Q: Daily Kneads, Inc., is considering outsourcing one of its many products rather than making it…

A: Make or Buy Decision: The process of deciding whether to produce a product or service in-house or to…

Q: Burchard Company sold 45,000 units of its only product for $18.00 per unit this year. Manufacturing…

A: The contribution margin is the sales revenue over the total variable cost incurred on manufacturing…

Q: per unit, fixed manufacturing overhead costs total $185,000 per month, and fixed selling costs total…

A: The impact on income from closing the plant would be the loss in contribution margin for the 9,000…

Q: A factory engaged in manufacturing plastic toys is working at 50% capacity and produces 50,000 toys…

A: Capacity Level 50% 60% 80% Production (Units) 50,000 60,000 80,000   Per Unit Total Per Unit…

Q: Total fixed expenses are P400,000 per month. All three products are sold in highly competitive…

A: Break-even point is the point at which total cost and total revenue are equal. Break Even point =…

Q: Piper Corp. is operating at 70% of capacity and is currently purchasing a part used in its…

A: Answer is Option c) $30,000 cost increase .

Q: Artisan Metalworks has a bottleneck in their production that occurs within the engraving department.…

A: Computation of the annual financial impact of hiring the extra workers as follows:

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: Discuss the limitations of break-even analysis.

A: Break even point is a point where the situation is no profit no loss.  Break even point (units) =…

Q: Sparrow Co. is currently operating at 80% of capacity and is currently purchasing a part used in its…

A: Differential cost means diff. between the cost of two alternative decisions i.e. either the firm has…

Q: Panther Tyres Inc., produces 50,000 units each day, and the average number of units in work in…

A: Comments; Multiple questions asked  Carrying cost - It is the cost of holding the inventory in the…

Q: Cotton Corp. currently makes 12,500 subcomponents a year in one of its factories. The unit costs to…

A: Formulas:

Q: Sage Company is operating at 90% of capacity and is currently purchasing a part used in its…

A: Differential analysis (also called incremental analysis) is a management accounting technique in…

Q: Lusk Corporation produces and sells 16,000 units of Product X each month. The selling price of…

A: The company discontinues the production of any product when the product is generating loss or not…

Q: The following are the unit costs of making and selling an item at a volume of 30,000 units per month…

A: To analyze the result of the change in any activity or process by the management a differential cost…

Q: Artisan Metalworks has a bottleneck in their production that occurs within the engraving department.…

A: Financial impact of hiring new worker = Contribution on selling additonal units - additional fixed…

Q: what would be the amount of differential cost increase or decrease from making the part rather than…

A: Differential analysis:   Differential analysis (also called incremental analysis) is a management…

Q: Brecht Ltd produces a standard product which is sold for £85 each. The business incurred variable…

A: Breakeven point is that point in business at which business is recovering its fixed costs and…

Q: MZE Manufacturing Company has a normal plant capacity of 37,500 units per month. Because of an…

A: Monthly fixed costs and expenses are irrelevant costs because they will not increase with the…

Q: Determine the per-unit cost of making and selling 1,800 pagers. (Do not round intermediate…

A: Given information is: Gibson Modems has excess production capacity and is considering the…

Q: turn Company produces 1,000 parts per year, which are used in the assembly of one of its products.…

A: Relevant costs are the cost which helps in taking cost related decisions. In the given case, Saturn…

Q: The following data are available: variable cost per unit, P8, fixed cost per unit P10, profit…

A: “Since you have asked multiple questions, we will solve the first question for you. If youwant any…

Q: A company has a production capacity of 580 units per month and its fixed cost is P185,000 a month.…

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

Q: increases the unit variable cost by $18 per unit but it does not have any fixed costs. The company…

A: Operating income = total revenue - total variable costs - total fixed costs. We will now use the…