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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3
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 Group of answer choices a. 6,250 b. 10,000 c. 2,381 d. 3,846
PROBLEM 3. The income statement of Sandra Company follows: Sales Less Variable expenses Contribution margin Less Fixed costs P500,000 (275.000) 225,000 (180,000) P 45,000 Operating income Sandra produces and sells a single product. The above income statement is based on sales of 100,000 units. Requirements: 1. Compute the breakeven point in units and in pesos. 2. Suppose that the selling price increases by 10 percent. Will the breakeven increase or decrease? 3. Suppose that the variable cost per unit increases by P0.35. What will happen to breakeven point? Can you predict whether the breakeven increases or decreases if both the selling price and the unit variable cost increase? Recompute the breakeven point by incorporating both the changes in requirement 2 and 3. 5. Assume that total fixed costs increase by P50,000. Will the breakeven point change? 4.
A company with fixed costs of P40,000 is now breaking even on sales of P160,000. How much income can be expected on sales of P200,000?
AA Company produces and sells refrigerator magnets to be sold as novelty items by resorts. Last year, the company sold 198,400 units. The income statement for AA Company for last year is as follow: $992,000 545,600 $446,400 Sales Less: Variable expenses Contribution margin Less: Fixed expenses 180,000 $266,400 Operating Income How much was the margin of safety in revenue for last year? (Answer format: $123,456.78) * Your answer Suppose that the selling price decreases by 8 percent. How much is the revised breakeven point in units? (Answer format: 123.45) * Your answer
2.9 Company X and Company Y sells the same product for the same price. Company X has fixed costs of Birr 100 and variable costs of Birr 10 per unit. Company Y has fixed costs of Birr 200 and variable costs of Birr8. What is the unit sales price at which these companies will have the same break-even point in terms of unit sales?
If a company decides to increase its selling price by $4 per unit because of an increase in its variable labor cost of $4 per unit, what impact will these two changes have on the break-even volume in units?
2. Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The company’s monthly fixed expenses are $22,500. The following names are to be considered when completing this problem: Operating Income Variable Costs Sales Fixed Costs per Unit Selling Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Operating Loss What is the company’s break-even point in units? . Use commas as needed (i.e. 1,234). What is the company’s break-even point in dollars? . Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Using the names listed above, construct a contribution margin income statement for the month of September when they will sell 900 units. Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Maple Enterprises Contribution Margin Income Statement For the Month of September How many units will Maple need to sell in…
How much would be the net effect on the total segment profit if product B is dropped and discontinued? Assume that by dropping product B, product A would increase A's sales by 80%. How much would be the net effect on the total segment profit? Assume that by dropping product B, product A would decrease A's sales by 20%. Moreover, 30,000 of common costs allocated are avoidable. How much would be the net effect on the total segment profit?
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If total fixed cost of company increases from $250,000 to $300,000, variable cost remainsunchanged at $2 per unit, and selling price increases from $10 to $11.50. How the above changes will affect break-even point in units? A)The break-even point in units will decrease. B)None of the other. C)The break-even point in units will increase. D)The break-even point in units will remain same.
a. Total fixed cost is $1.440,000 and a unit of product is sold for $12 in excess of its unit variable cost. What is the break-even in units?

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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?