Compute break-even unit for each product
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A: If new equipment is purchased then Variable cost = $20 - $1 = $19
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A: Given,
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A: Formulas:
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A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: How would i find the variable cost per unit?
A: Variable costs: Variable costs refers to those costs that change in proportion, with the change in…
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A: ‘’Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
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A: Fixed monthly cost=$8000Variable cost per table=$65Sales volume=300Selling price per piece=$180
Q: Jana's Company produces tie racks. The estimated fixed costs for the year are $288,000, and the…
A: Formula: Contribution margin ratio=Selling price per unit-Variable cost per unitSelling price per…
Q: EasyWriter manufactures an erasable ballpoint pen, which sells for $1.75 per unit. Management…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
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Q: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90.…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: If the sales mix and sales units are as expected, the break-even in sales ($) is: (round figures to…
A: A break even point is the production level at which the company is able to recover all of its fixed…
Q: The Willow Furniture Company produces tables. The fixed monthly cost of production is$8,000, and the…
A: Contribution margin per unit = Sales price per unit - Variable cost per unit = $180 - $65 = $115 per…
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A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
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Q: XYZ Company produces two models of wood chairs, A and B. The selling price per unit and the variable…
A: Total sales = 7,200 + 1,800 = 9,000 Sales mix of model A = 7,200/9,000 Sales mix of model A = 80%…
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A: The Break-even point is the point at which the company is able to earn only the required amount to…
Q: Last year, Bread City had sales of 70,000 loaves resulting in revenues of $350,000. Variable costs…
A: Solution:- Profit means the surplus of revenue over the incurred costs.
Q: Neptune Company has developed a small Inflatable toy that It Is anxlouUs to Introduce to Its…
A: Break-even point: A breakeven analysis is a calculation of the point at which revenue equals…
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A: Solution: Contribution margin ration = Contribution margin / Sales price = (40 - 32) / 40 = 8/40 =…
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A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: Robeson Company estimates it will produce and sell 3,000 units next month. Data on costs follows:…
A: Contribution margin per unit = Selling price - Variable costs per unit Breakeven in units = Fixed…
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A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
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A: Sales - variable cost = contribution
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A:
Q: o ship its product to customers. Currently, the company’s returns department incurs annual overhead…
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Q: Mackler, Inc. sells a product with a contribution margin of $50 per unit. Fixed costs are $8,000 per…
A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…
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…
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A: The Numerical has covered the concept of calculation of Selling Price When we need to compute the…
Q: ) Robeson Company estimates it will produce and sell 3,000 units next month. Data on costs follows:…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
In the next month, the company want to launch new product, a night cream. The selling price for Night Cream is $15 and variable cost per unit to produce is $5. The total fixed cost to produce night cream is $525,000. The sales mix between face wash and night cream is 2:1. Compute break-even unit for each product
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- Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.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.
- A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per year for reworking products. What is a good estimate of non-value-added costs? a. 126,000 b. 70,000 c. 56,000 d. 130,000Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?Wellington, Inc., reports the following contribution margin income statement for the month of May. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $10 but will increase fixed costs by 20%. Prepare a projected contribution margin income statement for Wellington, Inc., assuming it purchases the new equipment. Assume sales level remains unchanged.
- Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)Bethany Company has just completed the first month of producing a new product but has not yet shipped any of this product. The product incurred variable manufacturing costs of 5,000,000, fixed manufacturing costs of 2,000,000, variable marketing costs of 1,000,000, and fixed marketing costs of 3,000,000. Under the variable costing concept, the inventory value of the new product would be: a. 5,000,000. b. 6,000,000. c. 8,000,000. d. 11,000,000.Markham Farms reports the following contribution margin income statement for the month of August. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $2 but will increase fixed costs by 15%. Prepare a projected contribution margin income statement for Markham Farm assuming it purchases the new equipment. Assume sales level remains unchanged.
- The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express the companys maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Predict the maintenance costs i190,000 gallons of paint are produced. Predict the maintenance costs if 81,000 gallons of paint are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between gallons of paint produced and equipment maintenance expenses.Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200Kerr 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.