A furniture manufacturer has an annual overhead cost of P120,000 plus 20% of the sales in pesos. Labor costs P20 per set and the materials cost P10. He has a maximum capacity of 1000 sets per month but expects to produce only 8000 sets per year. If he could sell all what he expects to produce, how much is the selling price of each set just to break even?

Q: The manager of Coowie, Inc. is considering raising its current price of $30 per unit by 10%. If she…

A: Break even point in units = Fixed costs / Contribution margin per unit Where,…

Q: A moped manufacturing company needs 100,000 units of moped tires for its production per year.The…

A: Economic order quantity was an inventory management costing principle used to find out required…

Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit,…

A: Contribution margin is the price of the product deduct all the linked variable costs, results from…

Q: If each sales rep earns a salary of €60,000 per year, whatsales are necessary to break even on the…

A: Break-Even Point: It refers to a point of production at which there is no profit no loss.

Q: Dream Enterprise wants to know how much it costs to make (1) unit of their product and how much it…

A: Break Even Point: It is the situation where there is no profit and loss for the company; Total…

Q: Last year Minden Company introduced a new product and sold 15,000 units of it at a price of $70 per…

A: In this question, we will find a breakeven point in dollar sales which can be calculated by dividing…

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A: Increment revenue arises when the product is processed further to earn additional revenue over the…

Q: Nytre Limited sells executive office chairs for a price of $195 each. The contribution margin ratio…

A: The targeted sales are calculated as sum of fixed cost and target profit divided by contribution…

Q: aughn Manufacturing produces a product that requires 3.40 pounds of materials per unit. The…

A: Material is the inventory purchased by the company in order to produce the product for the company.…

Q: A manufacturing shop has annual fixed expenses of P500,000,000 and variable costs of P1,400 per…

A: Break even in cost accounting refers to a point where total costs are equal to total revenue and…

Q: The cost of producing a small transistor radio set consists of P22.00 for labor and P36.00 for…

A: Cost of Producing one unit = labor cost + material cost + variable cost Cost of Producing one P22 +…

Q: FDE Manufacturing Company has a normal plant capacity of 75,000 units per month. Because of an extra…

A: Answer) FDE Manufacturing Company Proposal to Sell to Exporter April 21, 20XX…

Q: Acme Brick Company has an order to make 25,000 bricks.  It normally charges $6.95 per brick but this…

A: Formula used: Break even units = Fixed cost / Unit Contribution margin Division of Unit contribution…

Q: A company is creating and selling a new product. They can sell each unit for $26.29. the variable…

A: Selling price = $ 26.29 Variable cost = $ 15.04 Fixed cost = $ 2968

Q: A local company assembling stereo radio cassette produces 300 units per month at a cost of 800 per…

A: Break even point  is the situation where there is no profit or loss for the company Break even…

Q: Jamie Quinn, a sole proprietor, has the following projected figures for next year: Selling price…

A: Formula: Break even point in units = Fixed cost / ( Selling price per unit - variable cost per unit…

Q: plant operation has fixed costs of ₱2,000,000 per year, and its output capacity is 100,000…

A:

Q: Dream Enterprise wants to know how much it costs to make one (1) unit of their product and how much…

A: Answer 1) Calculation of Product’s total cost per unit Total Cost per unit = (Fixed Cost per month +…

Q: Jack’s Jax has total fixed costs of $25,000. If the company’s contribution margin is 60%, the income…

A: Given that, total fixed costs of $25,000 company’s contribution margin is 60%  the income tax rate…

Q: ABC Company has only 25,000 hours of machine time each month to manufacture its two products.…

A: Calculation of contribution margin per machine hour = Contribution per unit/Machine hours per unit…

Q: Marsh Motors sells 5,000 motors a year for $30 apiece. Variable costs are $8 per unit, and total…

A: The break even sales units are the sales where business earns no profit no loss during the year.

Q: Annually (10000) units of a product are sold at a price of (12) $/unit, if the fixed costs is…

A: The question is based on the concept of Cost Accounting.

Q: b. XYZ company produces staplers and other items. The production cost per unit is $8 and the cost of…

A: Production time allocated annually to the product =Annual demand/Daily production

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…

Q: The cost of producing a small transistor radio set consists of P22.00 for labor and P36.00 for…

A: A Break-even point is a point where a company's revenues and expenses were equal within a specific…

Q: Knoll, Inc. currently sells 51,000 units a month for $98 each, has variable costs of $68 per unit,…

A: Calculate the amount of prior profit before the price change.

Q: how many pairs must be produced each month for the foundry to break even?

A: Break even:-  Break even is a point at which the company is neither in profits nor losses. Anything…

Q: If the fixed cost becomes $1,250,000, due to the increase in rent and salaries, what would be the…

A: The following computations are done for Jet X Company to calculate the revised BEP load factor.

Q: The National Inc. will produce 5,000 boxes of chocolates next year.  Variable costs is 60% of sales,…

A: The correct calculation of the above question is given in the following steps for your reference.

Q: (a) What is the break-even point for each machine? (b) If Zoe expects to make 10,000 copies per…

A: a) Calculation of break even point for each machine:   Machine-1 Machine-2 Selling price 0.05…

Q: MicroCam produces a single product. Variable cost per unit is $25, and fixed costs are $95,000 per…

A: Sales at desired profit=Fixed cost+Desired profitSelling price-Variable cost per unit

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: Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the…

A: Pounds per sack = 100 lb   Week by week interest = 100,000 lb   d = Wkly intt for sacks =…

Q: A Mobile shop sells 5000 mobiles in a year and the sales is relatively constant throughout the year.…

A: Hi student Since there are multiple subparts,we will answer only first three subparts. If you want…

Q: Consider a factory that produces gear boxes at the annual rate of 12,000. Demand for the gear boxes…

A: The optimal average stock level is the ideal amount of inventory that a manufacturer should have at…

Q: A shoe manufacturer produces a pair of shoes at a labor cost of P10.00 + (01/100) and material cost…

A: Given data, Labor cost =P10 Material cost =P25 Fixed costs=P15,000 Variable cost per unit =P2…

Q: Benson Corporation is a manufacturing company that makes small electric motors it sells for $40 per…

A: The break even sales are the sales where business earns the no profit no loss during the period.

Q: The fixed costs within a machine shop are $3.4M annually.  The main product this shop produces is…

A: Formula: Net Profit = Revenues - expenses Deduction of expenses from revenues derives the Net…

Q: During a slack period, a manufacturer can sell 3000 articles per month at a price of $1.20 each. A…

A: Following are the given inputs Particulars Amount in $ Per Item Sales (3000 * 12) 36,000 $ 1.2…

Q: The cost of producing a small transistor radio set consists of P22.00 for labor and P36.00 for…

A: Total variable cost = labor + materials  + variable cost = P22.00 + P36.00 + P1.50 = P59.50

Q: The Charleston Company has fixed costs of Birr 20,000 per month, and variable costs of Birr 15 per…

A: Profit = Sales - Variable Cost - Fixed Cost

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: How much is the break-even point in units?

A: Break Even Point in Units = Fixed Costs / Contribution Per Unit Fixed Costs = $164500 Contribution…

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 fixed costs of Chun Company are $309,000 and the total variable costs for its only product are…

A: Contribution = Selling price - Variable cost Increase in contribution margin = 120 units × $100×55%…