Using the following unit data for a company that produces Product A and B, what is the breakeven point (round to nearest unit) when fixed costs total $175000? Product A Product B Units sold last year 2250 1000 Sales price $200 $450 Cost of goods sold 145 350 Sales commission 15 37 Variable costs 160 387 Contribution margin $ 40 $ 63 963 Product A; 572 Product B 2574 Product A; 1144 Product B 1287 Product A; 572 Product B 715 Product A; 715 Product B

Using the following unit data for a company that produces Product A and B, what is the breakeven point (round to nearest unit) when fixed costs total $175000? Product A Product B Units sold last year 2250 1000 Sales price $200 $450 Cost of goods sold 145 350 Sales commission 15 37 Variable costs 160 387 Contribution margin $ 40 $ 63 963 Product A; 572 Product B 2574 Product A; 1144 Product B 1287 Product A; 572 Product B 715 Product A; 715 Product B

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

See similar textbooks

	Product A	Product B
Units sold last year	2250	1000
Sales price	$200	$450
Cost of goods sold	145	350
Sales commission	15	37
Variable costs	160	387
Contribution margin	$ 40	$ 63

Similar questions

Mauro Products distributes a single product, a woven basket whose selling price is $17 and whose variable expense is $14.96 per unit. The company's monthly fixed expense is $3,672. a. Solve for the company's break-even point in unit sales using the equation method. b. Solve for the company's break-even point in dollar sales using the equation method and the CM ratio.
What are the fixed cost and variable cost form th ebelow list? 3000 Bottles price 25782.62 years Website hosting 1201.28Stickers printing price 5723.45Shipment of stickers 2280Delivery Order charges 3793.32Customs duty 744Clearance 360Shipping documentation 413MPL charges 554.38Rent of warehouse 6500Wages 3000Raw Materials 4000Unit Selling price
Heinrich is a manufacturing engineer with the Miller Company. He has determined the costs of producing a new product to be as follows: Equipment cost: $288,000/year Equipment salvage value at EOY5 = $41,000 Variable cost per unit of production: $14.55 Overhead cost per year: $48,300 If the Miller Company uses a 5-year planning horizon and the product can be sold for a unit price of $39.75, how many units must be produced and sold each year to break even?
BVM manufactured and sold 25,000 small statues this past year. At that volume, the firm was exactly in a breakeven situation in terms of profitability. BVM’s unit costs are expected to increase by 30% next year. What additional information is needed to determine how much the production volume/sales would have to increase next year to just break even in terms of profitability? (a) Costs per unit (b) Sales price per unit and costs per unit (c) Total fixed costs, sales price per unit, and costs per unit (d) No data is needed, the volume increase is 25, 000 + 25, 000(0.30) = 32, 500 units.
Company X has $ 938529 in annual fixed costs. The primary product generates $ 7.98 in revenue per unit and has variable costs of $5.50. The annual breakeven quantity is ____ units.
The costs of producing a commodity consist of ₱102.00 per unit for labor and material cost and ₱54.00 per unit for other variable cost. The fixed cost per month amounts to ₱850,000. The commodity is sold at ₱740.00 each, what is the break-even quality per month? (Hint: for Break-even quality, COST = REVENUE)
Task Description Precedence Time (days) cost($) crash time (days) Per day revised cost Preparation of drawings and permits - 14 72,500 10 10,000 Calling and letting of tenders - 68 166,750 66 23,000 Site preparation and excavation A 6 116,000 4 16000 Pouring the foundation A 24 250,000 24 - Framing C,D 40 145,000 30 20000 Plumbing and electrical work D 18 159,500 12 22000 Interior finished F 16 108,750 12 15000 Exterior finishes E,G 22 175,000 22 - Installing and commissioning new machines B,E 34 101,500 30 14000 Finishing touches and final work through H,I 32 64,000 32 - Calculate the minimum time and associate cost in which the project could be completed
A factory with capacity of 700,000 units per year operates at 62% capacity. The annual income is $430,000.00. Annual fixed costs are $190,000.00 and the variable costs are $0.348 per unit. a) What is the current loss or profit? b) What is the breakeven point?.
Ella Ltd recently started to manufacture and sell productDG. The variable cost of product DG is £4 per unit and the totalweekly fixed costs are £18 000.The company has set the initial selling price of product DG byadding a mark up of 40 per cent to its total unit cost. It has assumedthat production and sales will be 3000 units per week.The company holds no stocks of product DG.Required:(a) Calculate for product DG:(i) the initial selling price per unit; and(ii) the resultant weekly profit. The management accountant has established that alinear relationship between the unit selling price (P in £)and the weekly demand (Q in units) for product DG isgiven by:P = 20 - 0:002QThe marginal revenue (MR in £ per unit) is related to weeklydemand (Q in units) by the equation:MR = 20 - 0:004Q(b) Calculate the selling price per unit for product DG that shouldbe set in order to maximize weekly profit. (c) Distinguish briefly between penetration and skimming pricingpolicies when launching a new…
Method of full coating is taking into account a. Only direct costs and respective contribution margin b. All costs including fixed and variable costs c. Only direct costs and respective gross margin d. Total sum of fixed costs,but only a paid amount of variable cos
If company A manufactures t-shirts and sells them to retailers for US$9.80 each.It has fixed costs of $2625 related to the production of the t-shirts, and the production cost per unit is US$2.30. Company B also manufactures t-shirts and selll them directly to consumers.The demand for its product is p = 15-x/ 125, its production cost per unit is US$5.00 and its fixed cost are the same as for company A . How many t-shirts must company B sell to maximise its profit?
Chambers Company has just gathered estimates forconducting a break-even analysis for a new product.Variable costs are $7 a unit. The additional plant willcost $48,000. The new product will be charged $18,000a year for its share of general overhead. Advertisingexpenditures will be $80,000, and $55,000 will be spenton distribution. If the product sells for $12, what is thebreak even point in units? What is the break even pointin dollar sales volume?