BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 21, Problem 21.20EX
Textbook Problem

Break-even chart

Name the following chart and identify the items represented by the letters (a) through (f):

Chapter 21, Problem 21.20EX, Break-even chart Name the following chart and identify the items represented by the letters (a)

Expert Solution
To determine

Break-even (Cost-Volume-Profit) chart: It is a graphical representation of the relationship between the sales, costs, and the related profit or loss at various levels of units sold. In other words, it shows the effect of the changes in the cost and the sales volume on the operating income of the company.

To name and identify: the items represented by the letters (a) through (f) in the given chart.

Explanation of Solution

Name and identify the items represented by the letters (a) through (f) in the given chart.

Sl. No. Name
a. Break-even point
b. Total fixed costs
c. Operating loss area
d. Maximum operating profit
e. Profit line
f. Operating profit area

Table (1)

a.

The break-even point is the intersection point where the profit line meets at the $0 operating profit line drawn horizontally from left to right. A vertical dotted line is drawn downward from the intersection point to reach at the break-even sales (units). At this break-even level of sales units, indicates no profit no loss.

b.

The total fixed cost of ($150,000) is equal to the maximum operating loss total fixed cost at zero level of sales. The company suffers the loss of the fixed cost incurred even though there are no units produced...

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Chapter 21 Solutions

Accounting
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Ch. 21 - High-low method The manufacturing costs of...Ch. 21 - High-low method The manufacturing costs of...Ch. 21 - Contribution margin Lanning Company sells 160,000...Ch. 21 - Contribution margin Weidner Company sells 22,000...Ch. 21 - Break-even point Bigelow Inc. sells a product for...Ch. 21 - Break-even point Elrod Inc. sells a product for 75...Ch. 21 - Target profit Ramirez Inc. sells a product for 80...Ch. 21 - Target profit Scrushy Company sells a product for...Ch. 21 - Sales mix and break-even analysis Wide Open...Ch. 21 - Sales mix and break-even analysis Einhorn Company...Ch. 21 - Operating leverage SungSam Enterprises reports the...Ch. 21 - Operating leverage Westminster Co. reports the...Ch. 21 - Margin of safety Liu Inc. has sales of 48,500,000,...Ch. 21 - Margin of safety Junck Company has sales of...Ch. 21 - Classify costs Following is a list of various...Ch. 21 - Identify cost graphs The following cost graphs...Ch. 21 - Identify activity bases For a major university,...Ch. 21 - Identify activity bases From the following list of...Ch. 21 - Identify fixed and variable costs Intuit Inc...Ch. 21 - Relevant range and fixed and variable costs Vogel...Ch. 21 - High-low method Ziegler Inc. has decided to use...Ch. 21 - High-low method for a service company Boston...Ch. 21 - Contribution margin ratio a. Yountz Company...Ch. 21 - Contribution margin and contribution margin ratio...Ch. 21 - Break-even sales and sales to realize income from...Ch. 21 - Break-even sales Anheuser-Busch InBev Companies,...Ch. 21 - Break even sales Currently, the unit .selling...Ch. 21 - Break-even analysis The Junior League of...Ch. 21 - Break-even analysis Media outlets such as ESPN and...Ch. 21 - Break-even analysis for a service company Sprint...Ch. 21 - Cost-volume-profit chart For the coming year,...Ch. 21 - Profit-volume chart Using the data for Loudermilk...Ch. 21 - Break-even chart Name the following chart and...Ch. 21 - Break-even chart Name the following chart and...Ch. 21 - Sales mix and break-even sales Dragon Sports Inc....Ch. 21 - Break-even sales and sales mix for a service...Ch. 21 - Margin of safety a. If Canace Company, with a...Ch. 21 - Break-even and margin of safety relationships At a...Ch. 21 - Operating leverage Beck Inc. and Bryant Inc. have...Ch. 21 - Items on variable costing income statement In the...Ch. 21 - Variable costing income statement On July 31, the...Ch. 21 - Appendix Absorption costing income statement On...Ch. 21 - Classify costs Seymour Clothing Co. manufactures a...Ch. 21 - Break-even sales under present and proposed...Ch. 21 - Break-even sales and cost-volume-profit chart For...Ch. 21 - Break-even sales and cost-volume-profit chart Last...Ch. 21 - Sales mix and break-even sales Data related to the...Ch. 21 - Contribution margin, break-even sales,...Ch. 21 - Classify costs Cromwell Furniture Company...Ch. 21 - Break-even sales under present and proposed...Ch. 21 - Break-even sales and cost-volume-profit chart For...Ch. 21 - Break-even sales and cost-volume-profit chart Last...Ch. 21 - Sales mix and break even sales Data related to the...Ch. 21 - Contribution margin, break-even sales,...Ch. 21 - Ethics in Action Edward Seymour is a financial...Ch. 21 - Communication Sun Airlines is a commercial airline...Ch. 21 - Break-even analysis Somerset Inc. has finished a...Ch. 21 - Variable costs and activity bases in decision...Ch. 21 - Variable costs and activity bases in decision...

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