sales price of $250 is required to earn a target profit of $45,000 if fixed costs are $1200, variable costs are $96, and sales in units are 300. True or False?
Q: Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit of $100,000.…
A: The break-even point indicates that how many units the organization should sell to recover the cost…
Q: Atlantic Company sells a product with a break-even point of 3,868 sales units. The variable cost is…
A: Unit sales price is the price at which each unit is sold. In other words, this means selling price…
Q: Reynold's Company has a product with fixed costs of $279,000, a unit selling price of $27, and unit…
A: Contribution margin per unit = Unit selling price - Unit variable costs Break-even sales (units) =…
Q: Sales = 5250 units with selling price of OMR 20 per unit, Break-even point = 4000 units, Fixed cost…
A: Given: Sales = 5250 units Break-even point = 4000 units Fixed cost = OMR 24000 Total Variable cost…
Q: Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit of $80,000.…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: he selling price of a particular product is $37.00 per unit, fixed costs total $225,600, and the…
A: Break even sales = Fixed costs/Contribution margin ratio Contribution margin ratio = Fixed…
Q: Maggie Corp. has a selling price of $25 per unit, variable costs of $11 per unit, and fixed costs of…
A: The Break-even point is the point where the company is able to cover all its costs but does not make…
Q: A company produces a product with variable costs of $2.50 per unit. The product sells for $5.00 per…
A: Answer - Sales Level to achieve the desired Target income = (Fixed Cost + Targeted Income) /…
Q: Rooney Company reported the following data regarding the product it sells: Sales price Contribution…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: A company desires to sell a sufficient quantity of products to earn a profit of $200000. If the unit…
A: Contribution margin per unit = Selling price - Variable cost per unit Contribution margin per unit =…
Q: Using the variable cost concept, determine the selling price per unit for 30,000 units using the…
A: Sales = Total cost + Desired profit Total cost = Total variable cost + Total fixed costs
Q: If fixed costs are $450,000, the unit selling price is $75, and the unit variable costs are $50,…
A: Break-Even Sales:-It is the sales which a business earns with zero profit margin. Here the company…
Q: A firm expects to sell 25,400 units of its product at $14 per unit. Income is predicted to be…
A: A constant cost is something that does not change in response to activities. It must be paid on a…
Q: If fixed costs are $260,000, the unit selling price is $74, and the unit variable costs are $55, the…
A: Break even units = Fixed cost/ Contribution per unit Contribution per unit= Sales price - Variable…
Q: If fixed costs are $17,000,000 with breakeven units at 400,000 and the variable cost is $17,000,000…
A: The Numerical has covered the concept of Break-Even Point. Break-Even Point is that point where the…
Q: Summersville Production Company had the following projected information for the current year:…
A: Formula: Break even point in units = Fixed cost / ( Selling price per unit - variable cost per unit…
Q: Spice Inc.'s unit selling price is $51, the unit variable costs are $38, fixed costs are $102,000,…
A: Formula: Contribution margin = selling price - variable cost Deduction of variable cost from selling…
Q: Variable costs for Concord Corporation are 60% of sales. Its selling price is $240 per unit. If…
A: Break-even refers to covering all the costs without making a profit. At break-even point company…
Q: If the selling price is $32 per unit, the variable cost is $24 per unit, and total fixed cost is…
A: Break-even analysis is a technique used widely by production management. It helps to determine the…
Q: If fixed costs are $300,000, the unit selling price is $25, and the unit variable costs are $20,…
A: Formula for Break even point: Break even point = Fixed cost / (Selling price - Variable cost)
Q: Management believes it can sell a new product for $6.50. The fixed costs of production are estimated…
A: a )Given that: Selling price= $6.50. Fixed costs of production= $5,500, and the Variable costs =…
Q: At a sales volume of 20,000 units, total costs are 60,000. The company's variable cost per unit is…
A: Fixed costs are those costs which do not change with change in level of activity. Variable costs are…
Q: If the sales price is $150 per unit, the variable cost is $90 per unit, and total fixed costs is…
A: Contribution margin per unit = Sales price - Variable cost Contribution margin ratio = Contribution…
Q: A company needs to sell 10,000 units of its only product in order to break even. Fixed costs are…
A: Margin of Safety: The break-even point reflects the level of sales volume where no profit or loss is…
Q: Gladstorm Enterprises sells a product for $60 per unit. The variable cost is $40 per unit, while…
A: Break even point in units = fixed costs/(selling price per unit - variable cost per unit)
Q: The selling price of a particular product is $81.00 per unit, the variable expense is $55.00 per…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: If fixed costs are $ 500,000, the unit selling price is $55, and the unit variable costs are $30,…
A: Break-even Point: It refers to a point in the level of operations at which a company experiences…
Q: Currently, the unit selling price of a product is $1,500, the unit variable cost is $1,200, and the…
A: Break-even point(BEP): It is a point where there would be no profit or no loss which means that the…
Q: Tequila Mockingbird, Inc. has total costs of $70,000 when it sells 10,000 units. If total fixed…
A: Cost: Cost in accounting can be explained as the amount that is borne by a company or an…
Q: Given selling price is RO 12 per unit, variable cost is RO 8 per unit and fixed cost is RO 5,000.…
A: Break Even Point is Point at which there is no profit and no loss . To calculate the same following…
Q: If fixed costs are $235,000, the unit selling price is $125, and the unit variable costs are $75,…
A: Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with…
Q: If the unit sales price is $22 and variable costs are $14, how many units have to be söld to earn a…
A: The number of units to be sold is the target volume to achieve a target profit. Target profit =…
Q: How many total dollars of sales must BAC Company sell to break even if the selling price per unit is…
A: Contribution margin per unit = Selling price per unit - Variable cost per unit Contribution margin…
Q: If fixed expenses are $45,000, the break-even in sales dollars is $60,000 and the selling price per…
A:
Q: margin of safety will be
A: Definition: Margin of safety: Margin of safety reflects the excess of sales over the break-even…
Q: Bergman Ltd has the following product information available: Sales price $12 per unit Variable…
A: Contribution margin per unit = $12 - $4 = $8
Q: Golden Corporation contemplates to market a new product. Estimated fixed costs is P1,000,000. The…
A: Variable cost ratio is the ratio of toral variable costs with total sales revenue. Contribution…
Q: 500 units in sales are required to earn a target profit of $45,000 if fixed costs are $1200,…
A: The Break-even point is the level of sales at which the operating income of the company is zero At…
Q: Currently, the unit selling price of a product is $340, the unit variable cost is $280, and the…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: Solomon company has total fixed cost of $15,000, variable cost per unit of $6, and a price of $8. If…
A: Units required to earn Targeted profits can be calculated by the formula as follows, =(Total fixed…
Q: If fixed costs are $332,000, the unit selling price is $74, and the unit variable costs are $53, the…
A: Selling price per unit: It is the price at which a unit of product is sold in the market. Variable…
Q: Given breakeven sales in units of 32,000 and a unit contribution margin of $10, how many units must…
A:
Q: Halifax Products sells a product for $118. Variable costs per unit are $67, and monthly fixed costs…
A: Following are the answers to the given questions
Q: Sheffield Corp. wants to sell a sufficient quantity of products to earn a profit of $250000. If the…
A: Desired Units = (Fixed Cost + Desired Profit) / (Unit Selling Price - Unit Variable Cost)
Q: Fountain Corp. has a selling price of $14 per unit and variable costs of $9.80 per unit. When 18,000…
A: The margin of safety is additional sales above the break even sales level
Q: Expected sales 10,000 units at $8 each Variable costs $5 per unit Fixed Costs $21,000 Assume…
A: Unit Contribution margin = Selling price - Unit Variable cost = $8 - $5 = $3
Q: Versa Inc. sells a product for $100 per unit. The variable cost is $75 per unit, and fixed costs are…
A: (a) Break-even point in sales units = Fixed costsSales price per unit-Variable cost per units…
Q: Sooner Industries charges a price of $88 and has fixed cost of $301,000. Next year, Sooner expects…
A: Net operating income = Contribution margin - Fixed costs Contribution margin = Net operating income…
Q: The Waterfall Company sells a product for $150 per unit. The variable cost is $80 per unit, and…
A: The profits can be arrived from the income statement of the company. All the revenues, and expenses…
Q: with sales per unit of 300, variable cost per unit of 180, Total fixed cost of 75,000 and target…
A: Break even sales = fixed cost/ pv ratio
A sales price of $250 is required to earn a target profit of $45,000 if fixed costs are $1200, variable costs are $96, and sales in units are 300. True or False?
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- 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?Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.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 245,000
- 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. 2,000Maple 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.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.
- 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.A company has prepared the following statistics regarding its production and sales at different capacity levels. Total costs: 1. At what point is break-even reached in sales dollars? In units? (Hint: Use the capacity level to determine the number of units.) 2. If the company is operating at 60% capacity, should it accept an offer from a customer to buy 10,000 units at 3 per unit?
- 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?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.
