The new break-even point in units is:
Q: Alex Miller, Inc., sells car batteries to service stations for an average of $30 each. The variable…
A: Break even level = Total fixed costs / Contribution margin per unit where, Contribution margin per…
Q: Blossom Company makes radios that sell for $40 each. For the coming year, management expects fixed…
A: Contribution margin per unit = sales price - variable costs = $40 per unit - $32 per unit = $8 per…
Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…
A: Contribution margin income statement is a statement which shows variable costs and fixed costs of…
Q: A company sells 4100 units of a product at 15 JOD per unit, which costs the company JOD 12 to…
A: Markup: The markup is the difference between the selling price of a product or service and the cost…
Q: Vaughn Manufacturing sells radios for $50 per unit. The fixed costs are $425000 and the variable…
A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…
Q: Machine A has a fixed cost of P40,000 per year and a variable cost of P6 per unit. Machine B has an…
A: At break even point Fixed cost = contribution
Q: Forrester Company is considering buying new equipment that would increase monthly fixed costs from…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $10 per unit,…
A: Target sales = (Fixed Cost-Desired Income)/contribution per unit
Q: Mazoon Company is producing 30000 units every year and making a profit of RO 450000. The company…
A: Degree of Operating Leverage = Contribution margin/ Net Income
Q: Plymouth Corp. sells units for $108 each. Variable costs are $41 per unit, and fixed costs are…
A: The level of production at which leasing and not leasing the new machine will be indifferent is…
Q: Currently, the unit selling price of a product is $750, the unit variable cost is $600, and the…
A:
Q: Determine the annual breakeven quantity for the (a) Current system and (b) the new system. (b) Plot…
A: •Break even point = fixed cost / contribution per unit •Contribution per unit = selling price per…
Q: Forrester Company is considering buying new equipment that would increase monthly fixed costs from…
A: Contribution margin: It refers to the leftover revenue after deducting or decreasing the variable…
Q: Newton cellular manufactures and sells the top line cell phone for the year 2022. Newton has…
A: Solution 1: Contribution margin ratio = 100% - Variable cost ratio = 100% - 70% = 30%
Q: Mullis Corporation manufactures DVDs that sell for $5.20. Fixed costs are $35,000 and variable costs…
A: The break-even point is the point at which a company is a neither profitable nor losing money. At…
Q: The Monde Company makes a juice cooler with a capacity of 24 bottles. Each juice cooler sells for…
A: The question is based on the concept of cost volume profit analysis and calculation of Breakeven…
Q: Forrester Company is considering buying new equipment that would increase monthly fixed costs from…
A: For New Equipment: Fixed costs = $150,000 Variable cost = $60 per unit Selling price = $100 per unit…
Q: Victory Tire Company makes a special kind of racing tire. Variable costs are $220 per unit, and…
A: Increase (decrease) in operating income = [(New sales price - old sales price) - (New variable cost…
Q: Sweet Manufacturing is planning to sell 400,000 hammers for $3 per unit. The contribution margin…
A: Contribution margin per unit = Sales x Contribution margin ratio = $3 per unit x 20% = $0.60 per…
Q: COVID 19 Co. currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit,…
A: Units need to sell for desired profit = (Fixed costs + Desired profit) / Contribution margin per…
Q: In the upcoming year, NUBD estimates that it will produce and sell 4,000 units. The variable costs…
A: Analysis: As per Marginal costing, Margin of safety is the difference between Total sales Amount and…
Q: The DeWayne Company sells binoculars for $150 per unit. The variable cost is $100 per unit while the…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Forrester Company is considering buying new equipment that would increase monthly fixed costs from…
A: Break-even sales in units: The number of units of items that the company must sell to break even is…
Q: Drape Corp. would like to market a new product at a selling price of P15 per unit. Fixed costs for…
A: Contribution margin per unit = P15 x 35% = P5.25
Q: Barnam Company currently produces and sells 6,000 units of a product that has a contribution margin…
A: Determine contribution margin per unit (After investment).
Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…
A: SOLUTION- BREAK EVEN POINT IS THE POINT WHERE TOTAL COST IS EQUAL TO TOTAL REVENUE I.E THERE IS NO…
Q: how many units must Tony sell to breakeven?
A: Breakeven sales is the sales at which there is no profit or no loss. Breakeven point = Fixed cost/…
Q: Current Attempt in Progress Coronado Industries sells radios for $50 per unit. Th costs are $685000…
A: Compute variable cost per unit for new equipment as shown below:
Q: Trent PLLent Swifty Corporation sells a product for $50 per unit. The fixed costs are $930000 and…
A: The breakeven point in units has been calculated by total fixed cost divided by contribution per…
Q: Dishman Ltd plans to sell 200,000 items a year for £15 each. Fixed costs are £360,000 a year and…
A: Margin of safety is the difference between the actual sales for the current period and the break…
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: NUBD Company manufactures a face masks that sells for P10 per unit. This is its sole product and it…
A: Break Even Point = Total Fixed CostContribution Per Unit 50,000 units =…
Q: If the fixed costs of manufacturing a new cell phone are $9,000, the sales price is $100, and…
A: Break-Even Point is when the company recovered its fixed cost from its profit but did not earn…
Q: What is the fixed cost per unit at the break-even point?
A: Information Provided: Production units = 8000 Selling price = 1.50P Fixed costs = 2800P Variable…
Q: Kent Co. manufactures a product that sells for $50.00 and has variable costs of $24.00 per unit.…
A: Contribution margin = Sales - Variable cost
Q: FRANCORP sells product ABC for $60. The variable production cost is $12, the fixed production cost…
A: Minimum price per unit = Total cost / total units
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: Sparrow Co. is currently operating at 80% of capacity and is currently purchasing a part used in its…
A: Differential cost means diff. between the cost of two alternative decisions i.e. either the firm has…
Q: Shapland Inc. has fixed operating costs of $500,000 and variable costs of $50per unit. If it sells…
A: Given information: Fixed operating costs amounted to $500,000 Variable cost per unit is $50 Selling…
Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $10 per unit,…
A: Units need to sell for desired profit = (Fixed costs + Desired profit) / Contribution margin per…
Q: Compute the contribution margin per unit if the machine is purchased.
A: Contribution Margin = Sale Price - Variable Cost Sale Price = $57 per unit Variable Cost = $34 per…
Q: NUBD Company manufactures a face masks that sells for P10 per unit. This is its sole product and it…
A: Solution: Contribution margin per unit = Fixed costs / Breakeven units = P100,000 / 50000 = P2 per…
Q: Currently, the unit selling price of a product is $200, the unit variable cost is $160, and the…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: Exon is selling a commercial heating unit at the price of $100.000 per unit. The variable cost of…
A: Net profit refers to the net amount of money being earned by an individual or an entity or a company…
Q: Shelby Industries has a capacity to produce 45,00045,000 oak shelves per year and is currently…
A: Given Information : Capacity to produce = 45,000 shelves Currently selling = 40,000 shelves Unit…
Q: Ace Company manufactures a western-style hat that sells for P10 per unit. This is its sole product…
A: Break Even Point ( In units ) = Fixed cost Contribution per unit…
Q: Drape Corp. would like to market a new product at a selling price of P15 per unit. Fixed costs for…
A: Contribution margin per unit = P15 x 35% = P5.25
Q: Dishman Ltd plans to sell 200,000 items a year for £15 each. Fixed costs are £360,000 a year and…
A: Margin of Safety:- It is the difference in the intrinsic value and the market value of the stock. It…
Waterway Industries sells radios for $50 per unit. The fixed costs are $625000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $105000 and variable costs will be 50% of the selling price. The new break-even point in units is:
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- 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?Shelby Industries has a capacity to produce 45.000 oak shelves per year and is currently selling 40,000 shelves for $32 each. Martin Hardwoods has approached Shelby about buying 1,200 shelves for a new project and is willing to pay $26 each. The shelves can be packaged in bulk; this saves Shelby $1.50 per shelf compared to the normal packaging cost. Shelves have a unit variable cost of $27 with fixed costs of $350,000. Because the shelves dont require packaging, the unit variable costs for the special order will drop from $27 per shelf to $25.50 per shelf. Shelby has enough idle capacity to accept the contract. What is the minimum price per shelf that Shelby should accept for this special order?Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?
- 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 245,000Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $18,250 per year. The information they will use to consider these changes is shown here.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.
- 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.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.)Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shell. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320.000. However, the $130 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order? A. Profits will decrease by $1,200. B. Profits will increase by $31,200. C. Profits will increase by $600. D. Profits will increase by $7,200.
- Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?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.Syntech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and requires $1,500 per month in fixed costs. Syntech sells 100 cameras per month. If they process the camera further to enhance its functionality, it will require an additional $45 per unit of variable costs, plus an increase in fixed costs of $1,000 per month. The current price of the camera is $160. The marketing manager is positive that they can sell more and charge a higher price for the improved version. At what price level would the upgraded camera begin to improve operational earnings?