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A plant has capacity of producing 8000 units per month of a product, which it sells for 1.50P per unit regardless of output. The monthly fixed costs are 2800P and a variable cost of 4800P at 75% capacity. What is the fixed cost per unit at the break-even point?
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- If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000Faldo 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?) A plant has a capacity of producing 80T units per year of a product which it sells for P20.00 per unit regardless of output. The annual FC are P280T & a variable cost of P480T at 75% capacity. a) What is the break-even point in units? b) What is the fixed cost per unit and variable cost per unit at the break-even point? c) What is the profit at this level (75%) and at 100% capacity? d) At what volume of output will the company incur a loss?
- A product sells for $30 per unit and has variable costs of $20 per unit. The fixed costs are $720,000. If the variable costs per unit were to decrease by 18%, if fixed costs increase to $900,000, and the selling price increases by 25%, what would be the breakeven point in units?A company makes a product with a selling price of $20 per unit and variable costs of $12 12 per unit. The fixed costs for the period are P40000. What is the required output level to make a target profit of $10000?A machine manufacturer sells each machine for $7,300. The fixed costs are $279,550 per annum, variable costs are $1,500 per machine, and the production capacity is 58 machines in a year. What is break-even as a percent of capacity per annum?
- A small manufacturing operation can produce up to 300 units per week of a product that sells for $40 per unit. The variable cost per unit is $25, and the fixed cost per week is $3825. (a) What is the break-even point expressed as a percent of capacity? and (b) What would be the net income at 95% capacity?A firm manufactures a product that sells for $640 per unit. Variable cost per unit is $360 and fixed cost per month is $26,880. Capacity is 150 units per period. a. How much is the contribution margin? b. How much is the contribution rate? c. How many units must they sell in order to break even? d. Determine the break-even point if fixed cost is increased to $32,200. e. Determine the break-even point as a percent of capacity if fixed cost is reduced to $23,808, while unit variable cost is increased to 60% of unit price.Calculating breakeven point in units, contribution margin has given Mackler, Inc. sells a product with a contribution margin of $50 per unit. Fixed costs are $8,000 per month. How many units must Mackler sell to break even?
- Product X sells for $35 per unit and has related variable costs of $25 per unit. The fixed costs of producing product X are $65,000 per month. How many units of product X must be sold each month to earn a monthly operating income of $85,000?John Co. produces a product that sells for P80. The variable manufacturing costs are P50 per unit. The fixed manufacturing cost is P10 per unit based on the current level of activity, and fixed selling and administrative costs are P10 per unit. A selling commission of 10% of the selling price is paid on each unit sold. What is the contribution margin per unit?Nata Products produces Gloves. The estimated fixed costs for the year are $164,500, and the estimated variable costs per unit are $12. The company expects to produce and sell 40,000 Gloves at a unit selling price of $26 per unit. How much is the break-even point in units?
