Friar Corp. sells two products. Product A sells for $112 per unit, and has unit variable costs of $65. Product B sells for $102 per unit, and has unit variable costs of $59. Currently, Friar sells three units of Product B for every one unit of Product A sold. Friar has fixed costs of $752,400. How many units would Friar have to sell to earn a profit of $250,800?

Friar Corp. sells two products. Product A sells for $112 per unit, and has unit variable costs of $65. Product B sells for $102 per unit, and has unit variable costs of $59. Currently, Friar sells three units of Product B for every one unit of Product A sold. Friar has fixed costs of $752,400. How many units would Friar have to sell to earn a profit of $250,800?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...

See similar textbooks

Similar questions

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.
Pimpton Plows sells its product for $50. Its variable cost per unit is $19.00. Fixed costs total $434,000.How many units does the company need to sell to breakeven?What are the total sales in dollars at the breakeven point?How many units does the company need to sell to earn a profit of $155,000?
XYZ Company sells a product for $250. The variable cost is $150 per unit. The fixed costs are $300,000. The company wants to have a profit of $400,000. How many units do they have to sell to achieve this goal?
COVID 19 Corp. sells two products. Product A sells for $200 per unit, and has unit variable costs of $150. Product B sells for $50 per unit, and has unit variable costs of $20. Currently, COVID 19 Corp. sells three units of Product B and two units of Product A. COVID 19 Corp. has fixed costs of $760,000. What is COVID 19 Corp's break- even point in units? Select one: a. 8,000 units of A and 12,000 units of B b. 20,000 units of A and 20,000 units of B c. 10,000 units of A and 10,000 units of d. 12,000 units of A and 8,000 units of В
Friar Corp. sells two products. Product A sells for $60 per unit, and has unit variable costs of $34. Product B sells for $76 per unit, and has unit variable costs of $40. Currently, Friar sells three units of Product B for every one unit of Product A sold. Friar has fixed costs of $552.750. How many units would Friar have to sell to earn a profit of $187,600? Multiple Choice 11,050 units of A and 11,050 units of B 22.100 units of A and 22,100 units of B 16,575 units of A and 5,525 units of B 5,525 units of A and 16,575 units of B
A new product can be sold at OMR 50 per unit. The fixed cost is 8,640. The variable cost per unit is OMR 30. The company produces 900 units. What is the total profit if the company sells 900 units?
Shalom Company manufactures Peace Products and sells it at P500 per unit. Variable manufacturing costs to manufacture is P200 per unit, while it incurs P150 per unit to sell. The fixed costs to manufacture and sell are P150,000 and P120,000, respectively. (1) How many units should Shalom Company sell to break-even? (2) If the company targets to earn profit of P300,000, how many units should Company sell?
Miles Co. can further process Product B to produce Product C. Product B is currently selling for P60 per pound and costs P42 per pound to produce. Product C would sell for P82 per pound and would require an additional cost of P13 per pound to produce. What is the differential revenue of producing and selling Product C? (Per pound)
Asher Company sells two products—X and Y. Product X is sold for $30 per unit and has a variable cost per unit of $15. Product Y is sold for $30 per unit and has a variable cost of $10 per unit. Total fixed costs for the company are $20,000. Asher Company typically sells three units of Product X for every unit of Product Y. What is the breakeven point in total units? (Round any intermediate calculations to two decimal places, and your answer to the nearest unit.)
Kareem Co. produces a single product that is sold for $85 per unit. If the variable costs per unit are $25 and foxed costs total $74,000. How many units must Kareem sell in order to earn operating income of $100,0000?
Carla Vista Company sells product 1976NLC for $20 per unit. The cost of one unit of 1976NLC is $21, and the replacement cost is $20. The estimated cost to dispose of a unit is $4, and the normal profit is 30% of selling price. At what amount per unit should product 1976NLC be reported, applying lower-of-cost-or-market?
Coney Adventures Inc. sells one product for $5. The variable cost per item is $3, and the fixed costs for the firm are $40. Compute the breakeven point in units. Compute the number of units and sales revenue needed to achieve a $20 profit. (Ignore income taxes.) Assume that the income tax rate for Redlands is 40%. Compute the number of units and sales revenue needed to achieve an $18 net profit. Compute the number of units and sales revenue needed to achieve an 8% profit margin. (Ignore income taxes.)