Answered: A company has fixed costs of $320,000…

A company has fixed costs of $320,000 and a contribution margin per unit of $15. If the company wants to earn income of $40,000, how many units must be sold?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A company's normal capacity is 10,000 units and at this level variable cost per unit is Rs. 75 and…

A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…

Q: For Crane Company, sales is $3000000, fixed expenses are $900000, and the contribution margin ratio…

A: Required sales in dollars to earn a target net income = (Fixed expenses + target net income ) /…

Q: If the selling price per unit is $10, the unit contribution margin is $5, and total fixed expenses…

A: Breakeven sales units are the quantity of units sold that leads to a net income of zero. This means…

Q: Wells corporation has the following sales mix for its three products: A,20% B,35%,and C,45%.Fixed…

A: Break-even analysis is a technique used widely by the production management. It helps to determine…

Q: A business is looking to determine how much of its product it can sell in the marketplace. It has…

A: Calculate the contribution margin per unitCalculate the breakeven point in unitsCalculate the…

Q: Johnson's Plumbing's fixed costs are $700,000 and the unit contribution margin is $18. What amount…

A: Number of units sold means the number of goods sold by the entity during a period. It is determined…

Q: Suppose that a company has fixed costs of $19 per unit and variable costs $9 per unit when 16,000…

A: Fixed cost : These costs do not change with changes in level of activity .Total fixed costs remain…

Q: sales are $500,000, variable costs are $200,000, and fixed costs are $240,000, what is the…

A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…

Q: Kareem Co. produces a single product that is sold for $85 per unit. If the variable costs per unit…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: Adidas Co., has a sale of $2,100,000 (7,000 units), fixed expenses are $504,000, and the…

A: Introduction: Margin of safety : Deduction of break even sales from Actual sales derives the Margin…

Q: Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $183,800, how…

A: Cost-volume-profit analysis is a technique that is used to determine the impact of costs and sales…

Q: he contribution margin ratio is 25% for your company and the break-even point in sales revenue is…

A: Break even sales in dollars = Fixed expense / Contribution Margin Ratio Contribution margin =…

Q: A company desires to sell a sufficient quantity of products to earn a profit of $300,000. If the…

A: Definition of Variable cost:Variable cost refers to expenses that fluctuate directly with production…

Q: A company’s contribution margin per unit is $25. If the company increases its activity level from…

A: The additional money generated from selling a product after deducting the variable cost from the…

Q: Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $179,300, how…

A: Break even point ( in dollars ) = Fixed costs / Contribution margin ratio

Q: The contribution margin ratio is 25% for Your Company and the break-even point in sales revenue is…

A: Break-even analysis is a technique used widely by production management. It helps to determine the…

Q: A company produces widgets at a cost of $5 per widget. If the company produces 1,000 widgets, what…

A: Direct costs are expenses that can be specifically traced and assigned to a particular product,…

Q: Berea Company expects to sell 9,000 units. Total fixed costs are $84,000 and the contribution margin…

A: CVP analysis is used to identify the changes in costs and volume affect a company's operating…

Q: A company has fixed costs of P150,000, a variable cost ratio of 60%, and a margin of safety ratio of…

A: Here, Fixed costs = P150,000 Variable cost ratio = 60% Margin of safety ratio = 25% Find: Amount of…

Q: Please fill out this chart with

A: Step 1:Computation of the number of units to be sold at the break-even point:Number of units to be…

Q: didas Co., has a sale of $2,100,000 (7,000 units), fixed expenses are $504,000, and the contribution…

A: Sales price per unit = Total sales / no. of units sold = $2,100,000 / 7,000 units = $300 per unit

Q: The leading candidate for location will have a monthly fixed cost of $21,000 and variable costs of…

A: Cost-volume-profit analysis is a technique that is used to determine the impact of costs and sales…

Q: 7. Answer the following questions, considering each situation independently. You might not be able…

A: Given Profit =$200,000

Q: Chelsea Company has sales of $400,000, variable costs of $10 per unit, fixed costs of $100,000, and…

A: Total contribution margin :— It is the difference between total sales revenue and total variable…

Q: Tequila Mockingbird, Inc. has total costs of $70,000 when it sells 10,000 units. If total fixed…

A: Cost: Cost in accounting can be explained as the amount that is borne by a company or an…

Q: If the fixed cost becomes $1,250,000, due to the increase in rent and salaries, what would be the…

A: The following computations are done for Jet X Company to calculate the revised BEP load factor.

Q: A company has monthly fixed costs of $36,000. The variable costs are $2.50 per unit. If the sales…

A: Unit Contribution Margin = Selling Price per unit - Variable cost per unit

Q: The records of Valium Company show a contribution margin ratio of 45%. The company desires to earn a…

A: The target sales revenue is calculated by dividing the target contribution margin by contribution…

Q: A company has $6.70 per unit in variable costs and $4.10 per unit in fixed costs at a volume of…

A: Variable cost per unit = $ 6.70 Fixed Cost per Unit = $ 4.10 Total Cost per unit =$ 6.70+$ 4.10…

Q: Jessa Company has a 40% contribution margin percentage and fixed costs of P50,000. To earn a 15%…

A: Contribution margin ratio = Contribution margin / Sales where, Contribution margin = Sales -…

Q: Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $185,300, how…

A: Solution:Break- even point is the point of no profit, no loss i.e. where total expenditure equalizes…

Q: Your Company has a limit of 65,000 machine hours for the production. It produces three products,…

A: Contribution means the difference between the selling price and variable cost . Fixed cost remain…

Q: Luna Sea Sushi, Inc. has total costs of $130,000 when it sells 40,000 units. If total fixed costs…

A: Variable cost per unit can be calculated by dividing total variable cost by total units.

Q: Bluegill Company sells 10,000 units at $400 per unit. Fixed costs are $200,000, and operating income…

A: Contribution margin = Fixed cost + Income from operations Fixed cost is $200000 Income from…

Q: How do I work this problem in excel? Calculate the break even number of units if the fixed expenses…

A: Break-even number of units = Fixed Expenses/ Contribution margin per unit…

Q: There is a fixed cost of $40,000 to start a production process. Once the process has begun, the…

A: A financial statement called a profit and loss report lists a firm's revenue revenue and total…

Q: income is $500,000. What should be reported as variable expenses in the contribution margin income…

A: The contribution margin is calculated as difference between sales and variable cost.

Q: Luna Sea Sushi, Inc. has total costs of $90,000 when it sells 40,000 units. If total fixed costs are…

A: Total Cost = $ 90,000 Units Sold = 40, 000 Units Fixed Cost = $ 50,000

Question

A company has fixed costs of $320,000 and a contribution margin per unit of $15. If the company wants to earn income of $40,000, how many units must be sold?

AI-Generated Solution

AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.

Unlock instant AI solutions

Tap the button
to generate a solution

Click the button to generate
a solution

SEE SOLUTION

Similar questions

A company has $7.90 per unit in variable costs and $4.80 per unit in fixed costs at a volume of 50,000 units. If the company marks up total cost by 0.52, what price should be charged if 68,000 units are expected to be sold? Round to two decimal places.
A company has total sales of $1,000,000, variable costs of $500,000, and fixed costs of $200,000. What is the contribution margin ratio?
A company makes a product with a selling price of $20 per unit and variable costs of $ 9 per unit. The fixed costs for the period are $31580. What is the required output level to make a target profit of $15,000?
The Dickens Corporation produces one product, which it sells for $120. Variable costs are $72 per unit, and fixed costs are $80,000. What is the break-even point in dollars and in units? Please show work in Excel if possible.
Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $183,800, how many dollars of revenue must the company generate in order to reach the break-even point? Round to two decimal places.
If the food cost is $250,000 and the total labor cost is $300,000 and sales are $1,000,000, what is the prime cost in $?
The company shows a contribution margin ratio of 25%. The company desires to earn a profit of $15,000 and has fixed costs of $25,000. Determine the sales revenue that would have to be generated in order to earn the desired profit. $340,000 None $240,000 $106,250 $160,000
19 )
How do you get income from operations? (see attached)
Information concerning a company's products is as follows: Sales, $300,000; Variable costs, $240,000; Fixed costs, $40,000. Assuming that the company increased sales of the product by 25%, what should the operating income be?