QS 18-15 (Static) Interpreting a CVP chart LO P2Solve for each of the items below.Dollars$25,000$20,000$15,000$10,000$5,000$0(b)0 200 400 600(c)(d).1. Units produced at break-even point2. Dollar sales at break-even point3. Capacity in units4. Are fixed costs greater than $10,000?5. If 1,400 units are produced and sold, is there a profit or a loss?(a)(e)800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400Units produced and sold

Solution : Breakeven point in a CVP chart is the level of production where revenue line intersect…

Answered: 1. Units produced at break-even point…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. What is the break-even point in units for a company whose total fixed costs are $275, 450, selling price per unit is $16, and variable cost per unit is $14.75? A) 220,360 B) 150, 300 C ) 183,633 D) 225, 120
43) Determine the break-even point of sales if: Sales is $100,000, Variable cost is $ 50,000 and Profit is $20,000. $40,000 $50,000 $80,000 4. $20,000 What is the answer ?
Please answer 2.4 and 2.5
2. Use this information to answer questions: Fixed Expenses Rent $ 44,000 Utilities $ 40,000 Depreciation $6,500 Variable Expenses Cost of Goods Sold 34% of sales Sales Commissions 15% of sales a. What is the company's contribution margin percentage? b. What is the break-even point in dollars? c. If the company wants to earn a profit of $35,000 instead of breaking even, what is the amount of sales the company must achieve?
Given that the total cost, C, is related to sales volume, x, by the equation y=1000+0.2x, say true or false for the following and proof it. (a) The cost-sales line rises $2 for each increase of $10 in sales volume. (b) The slope of the line is interpreted as variable cost
3. A company has different output levels, and incurs different total production costs at each level, as follows. Total Costs Output (units) 6,000 8,000 44,700 57,700 c) If the selling price is SXX/unit at all levels, what is the B.E.P.? d) What is the breakeven revenue?
6. Once the break-even point is reached, which of the following statements is true? A) Variable expenses will remain constant in total. The contribution margin ratio begins to decrease. Operating income will increase by the unit contribution margin for each additional B) C) item sold. D) The total contribution margin changes from negative to positive. 7. The break-even in units sold will decrease if there is an increase in which of the following? A) Total fixed expenses. B) Selling price. C) Unit sales volume. D) Unit variable expenses. 8. Which of the following is normally included in product cost under the variable costing method? A) Prime cost and all conversion cost. B) Direct materials cost, direct labour cost, but not manufacturing overhead cost. Direct materials cost, direct labour cost, and variable manufacturing overhead cost. C) D) Prime cost but not conversion cost. 9. Regarding job-order costing and process costing: A) Job-order costing is better in the long run B) Are both…
What is the Break-Even sales (in units) given the following data: Total Fixed Costs = $250,000.00 Unit Selling Price = $105.00 Unit Variable Cost = $65 10,000 6.250 3,846 2,381
4.3 Break-even analysis Consider the following data: Selling price $10 per unit Variable cost $6 per unit Fixed costs $1,000 How many units need to be sold to break even? 4.4 Profit targets Using the same data as in Question 4.3, if fixed costs rise by 20% and the company need to make a profit of $350, how many units need to be sold?
6. Longstreet Inc. has fixed operating costs of $370,000, variable costs of $2.80 per unit produced, and its product sells for $4.00 per unit. What is the company's break-even point, i.e., at what unit sales volume would income equal costs? а. 240,500 b. 357,667 с. 336,083 d. 308,333 e. 366,917
A company provided the following data: Selling price per unit $80 Variable cost per unit $55 Total fixed costs $490,000 What is the break-even point in units?
O d. Contribution margin - fixed expenses - profit = 0 O e. Sales - fixed expenses - variable expenses = 0 Holding other factors constant, a company's contribution margin per unit will increase with: a. All answers given are NOT correct. b. any decrease in the selling price per unit O c. any increase in variable cost per unit O d. increase in its total fixed costs e. any increase in quantity sold. PAGE NEXT PA COLL CET 0001 A

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1. Units produced at break-even point 2. Dollar sales at break-even point 3. Capacity in units 4. Are fixed costs greater than $10,000? 5. If 1,400 units are produced and sold, is there a profit or a loss?