
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Frank Corporation has a single product. Its selling price is $80 and the variable costs are $30. The company’s fixed expenses are $5,000. What is the company’s break-even point in unit sales?
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- Chelsea Company has sales of $400,000, variable costs of $10 per unit, fixed costs of $100,000, and a profit of $60,000. How many units were sold?arrow_forwardGladstorm Enterprises sells a product for $60 per unit. The variable cost is $40 per unit, while fixed costs are $85,000. Determine the (a) break-even point in sales units and (b) break-even point in sales units if the selling price increased to $75 per unit.arrow_forwardLin Corporation has a single product whose selling price is $130 per unit and whose variable expense is $65 per unit. The company’s monthly fixed expense is $32,150. Lin Corporation has a single product whose selling price is $130 per unit and whose variable expense is $65 per unit. The company’s monthly fixed expense is $32,150. Required: 1. Calculate the unit sales needed to attain a target profit of $2,300. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $8,900. (Round your intermediate calculations to the nearest whole numbarrow_forward
- A-5arrow_forwardA company's fixed operating costs are $740,000, its variable costs are $2.25 per unit, and the product's sales price is $4.65. What is the company's break-even point; that is, at what unit sales volume will its income equal its costs? Round your answer to the nearest whole number. unitsarrow_forwardVirgil Corp. has a selling price of $30 per unit, and variable costs of $20 per unit. When 12,000 units are sold, profits equaled $55,000. How many units must be sold to break-even?arrow_forward
- A firm has fixed operating costs of $100,000 and variable costs of$4 per unit. If it sells the product for $6 per unit, what is the breakeven quantity? (50,000)arrow_forwardLin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The company’s monthly fixed expense is $31,600. Required: 1. Calculate the unit sales needed to attain a target profit of $8,300. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $10,000. (Round your intermediate calculations to the nearest whole number.)arrow_forwardFuture Corporation has a single product; the product selling price is $100 and variable costs are $60. The company’s fixed expenses are $10,000. What is the company’s break-even point in sales dollars?arrow_forward
- Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses. Contribution margin Fixed expenses Net operating income. Total $ 300,000 210,000 90,000 74,400 $ 15,600 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $29,400? 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. 4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. 5. What is the company's CM ratio? If the company can sell more units thereby increasing sales by $60,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Req 1 Per Unit $ 20 14 $6 Complete this question by…arrow_forwardThe sole product of Kilo Company sells for $10 and its fixed costs total $220,000. If its break-even point is 170,000 units, what is its variable cost per unit? Select one: A. $8.71 B. $7.41 C. $9.23 D. $1.29 E. The answer cannot be determined by the information given.arrow_forwarda company is planning to sell 45,800 units for $2.8 per unit and will break even at this level of sales expenses will be $41,220 what are the company's variable expenses per unitarrow_forward
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