Based on this information, the breakeven points for Bulldogs Co. and National Co. are: a. 5 million and 6 million units, respectively.b. 1.5 million and 0.75 million units, respectively.c. 0.75 million and 1.1 million units, respectively.d. 1 million and 1.5 million units, respectively. An analyst is evaluating the risk of two companies in the machinery industry: Bulldogs Co.and National Co. The analyst used the latest fiscal year's financial statements and interviewswith managers of the respective companies to gather the following information:Bulldogs Co.National Co.Number of units produced and soldSales price per unitVariable cost per unitFixed operating costFixed financing expense1 million1.5 millionP200P200P100P90 millionP120P40 millionP20 millionP20 million

Breakeven point is that level of sales revenue at which business is only recovering it's fixed costs…

Based on this information, the breakeven points for Bulldogs Co. and National Co. are: a. 5 million and 6 million units, respectively. b. 1.5 million and 0.75 million units, respectively. c. 0.75 million and 1.1 million units, respectively. d. 1 million and 1.5 million units, respectively.

Based on this information, the breakeven points for Bulldogs Co. and National Co. are: a. 5 million and 6 million units, respectively. b. 1.5 million and 0.75 million units, respectively. c. 0.75 million and 1.1 million units, respectively. d. 1 million and 1.5 million units, respectively.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 3PB: The income statement comparison for Rush Delivery Company shows the income statement for the current...

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Concept explainers

Cost volume profit (CVP) analysis

CVP analysis is a cost-volume-profit technique of cost accounting that examines the influence of varying levels of expenses and volume on operating profit. Cost Volume Profit analysis determines the relationship between Cost, Sale Volume, sales price, and Profit. CVP analysis is also known as break-even analysis which helps the business organization, banks, and their management to determine and forecast how a change in total sales and cost affects the profit of the organization. CVP analysis helps in financial decision-making for the budget, expense, tax, market investment, and corporate finance and aims at measuring variations in cost and volume.

Question

Based on this information, the breakeven points for Bulldogs Co. and National Co. are:

a. 5 million and 6 million units, respectively.

b. 1.5 million and 0.75 million units, respectively.

c. 0.75 million and 1.1 million units, respectively.

d. 1 million and 1.5 million units, respectively.

An analyst is evaluating the risk of two companies in the machinery industry: Bulldogs Co.
and National Co. The analyst used the latest fiscal year's financial statements and interviews
with managers of the respective companies to gather the following information:
Bulldogs Co.
National Co.
Number of units produced and sold
Sales price per unit
Variable cost per unit
Fixed operating cost
Fixed financing expense
1 million
1.5 million
P200
P200
P100
P90 million
P120
P40 million
P20 million
P20 million

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