ease. XYZ company has a selling price of $30, and variable costs of $20 per unit. When 12,000 units are sold, profits equaled $60,000. How many units must be sold to break-even? Select one: a. 8,000 O b. None of the given answers O c. 2,000 O d. 6,000 Oe. 5,000 ility of a change in operation and has gathered the following

ease. XYZ company has a selling price of $30, and variable costs of $20 per unit. When 12,000 units are sold, profits equaled $60,000. How many units must be sold to break-even? Select one: a. 8,000 O b. None of the given answers O c. 2,000 O d. 6,000 Oe. 5,000 ility of a change in operation and has gathered the following

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter20: Activity-based Costing (abc)

Section: Chapter Questions

Problem 3R

See similar textbooks

Similar questions

Contribution Margin Ratio, Break-Even Sales, Operating Leverage Elgart Company produces plastic mailboxes. The projected income statement for the coming year follows: Required: 1. Compute the contribution margin ratio for the mailboxes. 2. How much revenue must Elgart earn in order to break even? 3. What is the effect on the contribution margin ratio if the unit selling price and unit variable cost each increase by 15%? 4. CONCEPTUAL CONNECTION Suppose that management has decided to give a 4% commission on all sales. The projected income statement does not reflect this commission. Recompute the contribution margin ratio, assuming that the commission will be paid. What effect does this have on the break-even point? 5. CONCEPTUAL CONNECTION If the commission is paid as described in Requirement 4, management expects sales revenues to increase by 80,000. How will this affect operating leverage? Is it a sound decision to implement the commission? Support your answer with appropriate computations.
Mario Company is considering discontinuing a product. The costs of the product consist of $20,000 fixed costs and $15,000 variable costs. The variable operating expenses related to the product total $4,000. What is the differential cost? A. $19,000 B. $15,000 C. $35,000 D. $39,000
Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
SBD Phone Company sells its waterproof phone case for $90 per unit. Fixed costs total $162,000, andvariable costs are $36 per unit. How will the break-even point in units change in response to each of thefollowing independent changes in selling price per unit, variable cost per unit, or total fixed costs? Use Ifor increase and D for decrease. (It is not necessary to compute new break-even points.) Selling price per unit to $80
SBD Phone Company sells its waterproof phone case for $90 per unit. Fixed costs total $162,000, andvariable costs are $36 per unit. How will the break-even point in units change in response to each of thefollowing independent changes in selling price per unit, variable cost per unit, or total fixed costs? Use Ifor increase and D for decrease. (It is not necessary to compute new break-even points.) Total fixed costs to $190,000
SBD Phone Company sells its waterproof phone case for $90 per unit. Fixed costs total $162,000, andvariable costs are $36 per unit. How will the break-even point in units change in response to each of thefollowing independent changes in selling price per unit, variable cost per unit, or total fixed costs? Use Ifor increase and D for decrease. (It is not necessary to compute new break-even points.) Variable costs to $67 per unit
Company XYZ produces and sells wireless earphones . The selling price per unit is $5 and the total fixed costs are $20,000 . Assuming a variable cost ratio of 40\% , what is the breakeven point in ($) value ? (round figures to the nearest number ) a. 33,333 b.40,000 c. None of the given answers d. 66,667 e. 50,000
Techiefy Co. wants to launch a new product. it is observed that the fixed cost of the new product is $35,000 and the variable cost per unit is $500. The revenue function for the sale of D unit is 5000D-100 D2. The company's break even points are From blank 1 to blank 2 write first the smallest number thanks
Dennis Company sells a product for P20, variable costs are P8 per unit, and fixed costs are P32,000.a. What is Dennis' break-even point in units?b. Find the selling price that Dennis must charge to earn an P8,000 profit selling 1,600 units.c. Dennis is considering new equipment that would increase fixed costs by P2,000 while reducing unit variable costs by P1.60 per unit. Find the sales level where Dennis is indifferent between the two cost structures.
Company XYZ has total fixed costs of $5,000. Assume a selling price per unit of $8 and total variable cost per unit of $4, what is the breakeven point in ($) value? Select one: O a. 40,000 O b. None of the given answers O c. 1,250 O d. 10,000 O e. 20,000
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $1,407,000 $28.00 Total variable cost 590,940 11.76 Contribution margin $ 816,060 $ 16.24 Total fixed cost 685,490 Operating income $ 130,570 Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. units 2. How many units must be sold to earn a profit of $240,000? If required, round your answer to nearest whole value. units 3. Compute the contribution margin ratio. If required, round your answer to nearest whole number. % Using the rounded ratio from above, compute the additional profit that Khumbu would earn if sales were $160,000 more than expected.$ 4. For the projected level of sales, compute the margin of safety in units. units
CVP analysis, margin of safety. Suppose Morrison Corp.’s breakeven point is revenues of $1,100,000. Fixed costs are $660,000. Required: Compute the contribution margin percentage. Compute the selling price if variable costs are $16 per unit. Suppose 75,000 units are sold. Compute the margin of safety in units and dollars. What does this tell you about the risk of Morrison making a loss? What are the most likely reasons for this risk to increase?