Sabrina Inc., sells table for $110. The unit variable cost per table is $85. Fixed costs total $475,000. Required: a. What is the contribution margin per table? b. What is the breakeven point in table? C. How many table must be sold to earn a pretax income of $450,000? d. What is the margin of safety, assuming 33 000 tires are sold?
Q: Vicious Cycle, Inc., produces and sells 2,000 bikes. Selling price per unit $2,000 Variable cost per…
A: Contribution margin per unit = Selling price per unit - Variable Cost per unit
Q: Locus Company has total fixed costs of $115,000. Its product sells for $43 per unit and variable…
A:
Q: Reynold's Grocery has fixed costs of $346,000, the unit selling price is $27, and the unit variable…
A: Break even sales means that level of sales revenue at which busines is fully recovering its fixed…
Q: Mango LLC sells its product for $60 and has variable cost of $30 per unit. The total fixed costs are…
A: Break even point = Fixed costs /Contribution margin per unit where, Contribution margin per unit =…
Q: If fixed costs are $276,000, the unit selling price is $117, and the unit variable costs are $76,…
A: Given the following information: Question 1): Fixed costs: $276,000 Selling price per unit: $117…
Q: Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs…
A: Margin of safety means the difference between the budget sales and breakeven sales. It means the…
Q: Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $8 while…
A: Current sales = 20000 units Selling Price per unit = $8 Variable Cost Ratio = 20% Fixed Costs…
Q: A product sells for $295 per unit, and its variable costs per unit are $217. Total fixed costs are…
A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…
Q: Kareem Co. produces a single product that is sold for $85 per unit. If the variable costs per unit…
A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…
Q: Adidas Co., has a sale of $2,100,000 (7,000 units), fixed expenses are $504,000, and the…
A: Introduction: Margin of safety : Deduction of break even sales from Actual sales derives the Margin…
Q: Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Orchid Corp. has a selling price of $15, variable costs of $10 per unit, and fixed costs of $25,000.…
A: Contribution margin is difference of Sales and variable costs Contribution Margin = Sales Revenue…
Q: Yang Inc. produces only one product, berry baskets, which it sells for P72 each. Unit variable costs…
A: Operating income is the income generated from normal operations such as buying or selling of goods…
Q: Waple Corp. has a selling price of $30, varlable costs of $20 per unit, and fixed costs of $20,000.…
A: Solution: Unit contribution margin = Selling price per unit - Variable cost per unit
Q: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90.…
A: Answer A) Calculation of Breakeven point in units Breakeven point in units = Total fixed Cost/…
Q: Gladstorm Enterprises sells a product for $60 per unit. The variable cost is $20 per unit, while…
A: Break even point is that point of revenue at which company is recovering it's fixed costs and…
Q: Kensington Corporation has provided the following contribution format income statement. Answer each…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: Ritz Furniture has a contribution margin ratio of 0.17. If fixed costs are $166,600, how many…
A: Formula: Break even point in sales dollars = Fixed cost / Contribution margin ratio Division of…
Q: Tiara Corporation manufactures and sells scarfs. Price and cost data for the company are provided…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: 1. What is the break-even level in tires? 2. What is the margin of safety, assuming sales total…
A: Comment: The Question is Multipart, so SME will answer only three subparts as per Bartleby…
Q: Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $179,300, how…
A: Break even point ( in dollars ) = Fixed costs / Contribution margin ratio
Q: what is the break-even point in sales units if fixed costs are increased by $31,100? a.20,698 units…
A: Break Even Point in Units = Fixed Costs / Contribution Per Unit Current Fixed Cost = $1435000 New…
Q: Radison Inc. sells a product for $40 per unit. The variable cost is $20 per unit, while fixed costs…
A: Contribution margin per unit = sales price - variable costs = $40 per unit - $20 per unit = $20 per…
Q: Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit…
A: As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the answer…
Q: break-even point
A: Since the question has multiple sub parts we will answer the first 3 sub parts for you . If need the…
Q: Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $7 while…
A: It is pertinent to note that margin of safety is the additional sales made by the entity over and…
Q: didas Co., has a sale of $2,100,000 (7,000 units), fixed expenses are $504,000, and the contribution…
A: Sales price per unit = Total sales / no. of units sold = $2,100,000 / 7,000 units = $300 per unit
Q: Shock Electronics sells portable heaters for #35 per unit, and the variable cost to produce them is…
A: Introduction Break even point is the sales level at which the firm occurs with no profit and no…
Q: The “ABM” Company sells pencil cases for $15 each. Manufacturing cost is $4.60 per pencil case;…
A: capicity in unit(sale units) =15000 Sale price =15 Sale =Units of sale of pencil…
Q: Melon Company, a manufacturer of desks which has been established for more than 5 years. As at…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Perry, Inc. manufactures metal stampings for automobiles: stick shifts and trim kits. Fixed costs…
A: Contribution margin per unit = Sales per unit - Variable cost per unit Break-even point in…
Q: Ibra Company makes radios that sell for OMR 30 each. For the coming year, management expects fixed…
A: Answer- Breakeven Sales in Units = Total Fixed Cost / Contribution Margin Per Unit Breakeven…
Q: e of $100,000?
A: Given: To calculate the units in which realizes an operating income as,
Q: Hawk Homes, Inc., makes one type of birdhouse that it sells for $29.40 each. Its variable cost is…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.00 each. Its variable cost is…
A: Disclaimer: Since you have put a multi-part question, we are providing you with the solutions to the…
Q: Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit…
A: Margin of safety is the difference between total sales value and breakeven sales value. Here, we can…
Q: ABC company sells shoses for $450. The variable cost is $200 per unit. The fixed costs are $750000.…
A: Please find the answers to the above questions below:
Q: Alex Miller, Inc., sells car batteries to service stations for an average of $30 each. The variable…
A: Break even point can be defined as the production level at which the manufacturing costs is equal to…
Q: Luna Sea Sushi, Inc. has total costs of $90,000 when it sells 40,000 units. If total fixed costs are…
A: Total Cost = $ 90,000 Units Sold = 40, 000 Units Fixed Cost = $ 50,000
Q: Berhannan's Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: If the objective of the firm is to get 25% profit, how many units does the firm need to sell if the…
A: Unit Contribution margin = Unit selling price x Contribution margin ratio
Q: Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit…
A: Variable cost ratio = 100 - Contribution margin ratio = 100 - 30% = 70%
Q: Auto Tires, Inc. sells tires to service stations for an average of $145 each. The variable costs of…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
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: Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs…
A: Breakeven units is the units where at those units there is no loss or no profit. Breakeven in units…
Q: Rhine Inc. make a single product with a selling price of £35 per unit. Fixed costs are £40,000 and…
A: Units that must be sold to achieve target profit means units at which business is recovering its…
Q: Snower Corporation sells product G for $150 per unit, the variable cost per unit is $105, and the…
A: Introduction:- Snower Corporation sells product G for $150 per unit variable cost per unit is $105…
Q: The following data are available: variable cost per unit, P8, fixed cost per unit P10, profit…
A: “Since you have asked multiple questions, we will solve the first question for you. If youwant any…
Q: Unit VI question 6
A: The process of estimating and analyzing an institution's margin of safety based on collected…
Step by step
Solved in 4 steps
- Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.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.
- Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. 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 November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.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. 2,000
- Faldo 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?Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.Kerr 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.
- Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs per gas grill are 225, and the average price per gas grill is 600. Required: 1. How many gas grills must Gelbart Company sell to break even? 2. If Gelbart Company sells 46,775 gas grills in a year, what is the operating income? 3. If Gelbart Companys variable costs increase to 240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?Abilene Industries manufactures and sells three products (XX, W, and ZZ). The sales price and unit variable cost for the three products are as follows: Their sales mix is reflected as a ratio of 4:2:1. Annual fixed costs shared by the three products are $345.000 per year. What are total variable costs for Abilene with their current product mix? Calculate the number of units of each product that will need to be sold in order for Abilene to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?