A company produces a product with variable costs of $2.50 per unit. The product sells for $5.00 per unit. The company has fixed costs of $3,000 and desires a target income of $10,000. The sales level in dollars to achieve the desired target income
Q: Locus Company has total fixed costs of $115,000. Its product sells for $43 per unit and variable…
A:
Q: Atlantic Company sells a product with a break-even point of 3,868 sales units. The variable cost is…
A: Unit sales price is the price at which each unit is sold. In other words, this means selling price…
Q: London Plastics has monthly fixed costs of $92,500, while its variable costs are $4.10 per unit. If…
A: The sales revenue is the money earned from the sales of goods and services during a given period of…
Q: A company produces and sells a single product whose variable cost is $6 per unit. Fixed costs have…
A: We have the following information: Variable Cost: $6 per unit Fixed Cost: $2 per unit with normal…
Q: Atlantic Company sells a product with a break-even point of 5,385 sales units. The variable cost is…
A: Break-even point = Fixed costs / Contribution margin per unit Contribution margin per unit = Fixed…
Q: Summersville Production Company had the following projected information for the current year:…
A: Selling price per unit: It is the price at which a unit of product is sold in the market. Variable…
Q: ngle product. The product sells for Php120 per unit and has a contribution margin ratio of 30%. The…
A: Contribution margin ratio is the percentage of contribution in selling price. Contribution margin…
Q: Apex Company sells a product for $220 per unit. The variable cost is $170 per unit, and fixed costs…
A: The Break-even point is the point where the company does not earn profit nor does it incur a loss in…
Q: Kappa Inc. produces a product that has a variable cost of $8/unit. The company's fixed costs are…
A: Solution: Contribution margin per unit = sales price - variable cost = 12 - 8 = $4 per unit Break…
Q: Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: A new product can be sold at OMR 50 per unit. The fixed cost is 8,640. The variable cost per unit is…
A: Given sell price =OMR 50 per unit
Q: Reynold's Company has a product with fixed costs of $261,000, a unit selling price of $23, and unit…
A: Break even sales (units) = Fixed costs/Contribution margin per unit Contribution margin per unit =…
Q: Altstadt Inc. sells a product for $50 per unit. The variable cost is $20 per unit, and fixed costs…
A: Break-even point is a point at which a company is in a situation of no profit no loss. This means it…
Q: The fixed cost of a ceramic company is 18,000 OMR. The variable cost is 12 OMR per unit and selling…
A: To calculate the profit, total fixed cost and total variable cost is deducted from the total sales…
Q: Bobby Company has fixed costs of $160,000. The unit selling price, variable cost per unit, and…
A: The sales mix of the X and Y is 60% and 40% respectively. To determine the selling price, variable…
Q: Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs…
A: Thr break even sales are the sales where business earns no profit no loss during the period.
Q: O'Shaughnessy Inc. sells a product for $90 per unit. The variable cost is $65 per unit, while fixed…
A:
Q: Jungfrau Ltd. produces a single product with a selling price of £20. Variable costs are £5 per unit…
A: Contribution margin per unit = Selling price - Variable costs = £20 - £5 per unit = £15 per unit
Q: Green Co. incurs a cost of $15 per pound to produce Product X, which it sells for $26 per pound. The…
A: The differential analysis is performed to compare two different alternatives.
Q: ABD Corporation has the following information about its single product: Selling Price per unit ₱20…
A: Selling price per unit P20.00 Less: Variable Costs per Unit P12.00 Unit Contribution Margin…
Q: Zero, Inc. produces a product that has a variable cost of $6.00 per unit. The company's fixed costs…
A: Cost volume profit analysis is a technique used by the company to have an estimate of required…
Q: ohn Co. produces a product that sells for P80. The variable manufacturing costs are P50 per unit.…
A: Contribution margin per unit means the difference of selling price per unit to the total variable…
Q: A company has a linear total cost function and has determined that over the next three months it can…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: An organization manufactures and sells a single product that has a variable cost of $24 per unit and…
A: Introduction: Break-even point is the level of cash necessary to cover the company's entire fixed…
Q: Woodsman Company sells a product for $110 per unit. The variable cost is $40 per unit, and fixed…
A: Given : Woodsman Company sells a product = $110 per unit Variable cost = $40 per unit Fixed costs…
Q: RED manufactures a product which sells at £30 per unit and the variable cost is £23 per unit. Fixed…
A: we know that, Break even point = Fixed cost / contribution per unit Contribution per unit = selling…
Q: The Atlantic Company sells a product with a break-even point of 4,258 sales units. The variable cost…
A: Formulas: Break even point = Fixed costs /Contribution margin per unit where, Contribution margin…
Q: A company has fixed costs of $270,000, a contributmargin per unit of $14, and a contribution margin…
A: The Break-even point is the point where the company is able to cover all its costs but does not make…
Q: Gladstorm Enterprises sells a product for $60 per unit. The variable cost is $40 per unit, while…
A: Break even point in units = fixed costs/(selling price per unit - variable cost per unit)
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: Blanchard Company manufactures a single product that sells for $160 per unit and whose total…
A: Break-even point (units)=Annual fixed costsSelling price-Variable cost per unit
Q: Swan Company produces its product at a total cost of $43 per unit. Of this amount, $8 per unit is…
A: Markup percentage on variable cost = [($20 + $13)/$30] x 100
Q: O'Boyle Co.'s fixed costs are $256,000, the unit selling price is $36, and the unit variable costs…
A: Contribution margin = Sales -Variable cost=$36 -$20=$16 Fixed cost =$256000 Break even sales (Units)…
Q: Rothe Company manufactures and sells a single product that it sells for $90 per unit and has a…
A: Net operating income is the amount of money earned from the operations of an entity. It is an amount…
Q: The Atlantic Company sells a product with a break-even point of 6,167 sales units. The variable cost…
A: Introduction: Break even point: The level where there is no profit nor loss to the company for the…
Q: Connor Company's fixed costs are $400,000, the unit selling price is $25, and the unit variable…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The Asian Transmission Co. produces certain items at a labor cost of P 115 each, material cost of P…
A: Break even point is the point which shows the number of units required to sold to cover the…
Q: Bambam Inc. produces BingBong products. Cost data are as follows: Fixed selling cost of 200;…
A: Formula: Total cost = variable cost + fixed cost
Q: RST Company produces a product that has a variable cost of $6 per unit. The company's fixed costs…
A: Fixed cost: Fixed cost refers to those costs that will incur irrespective of the production process.…
Q: Bluegill Company sells 14,600 units at $320 per unit. Fixed costs are $233,600, and operating income…
A: Contribution indicates the value of sales left after excluding the variable portion of expenses…
Q: A company manufactures and sells one product. It plans to sell 25,000 units for the period. The…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: The Waterfall Company sells a product for $150 per unit. The variable cost is $80 per unit, and…
A: The profits can be arrived from the income statement of the company. All the revenues, and expenses…
Q: A company sells its product at P30 per unit. Unit variable cost is P22 and total fixed costs total…
A: Solution: New variable cost per unit after sales commission = P22 + (30*5%) = P23.50 per unit New…
Q: Massey Company reported the following data regarding the product it sells: Sales price $…
A: The contribution margin ratio approach: The contribution margin approach to calculate the break-even…
Q: Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs…
A: Solution 1: Contribution margin per unit = Selling price - Variable cost = $150 - $100 = $50 per…
Q: Blanchard Company manufactures a single product that sells for $180 per unit and whose total…
A: Income Statement is prepared under Matching Concept of accounting where all expenses are matched…
Q: Kerrigan Ltd makes and sells product A. The current selling price is £11 and the total of variable…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
Q: Trailblazer Company sells a product for $270 per unit. The variable cost is $110 per unit, and fixed…
A: Break-even point = Fixed cost / (Sales price per unit - Variable cost per unit)
A company produces a product with variable costs of $2.50 per unit. The product sells for $5.00 per unit. The company has fixed costs of $3,000 and desires a target income of $10,000. The sales level in dollars to achieve the desired target income is $
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
- Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
- Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.A company has prepared the following statistics regarding its production and sales at different capacity levels. Total costs: 1. At what point is break-even reached in sales dollars? In units? (Hint: Use the capacity level to determine the number of units.) 2. If the company is operating at 60% capacity, should it accept an offer from a customer to buy 10,000 units at 3 per unit?Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.
- Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. Using the costs data from Rose Company, answer the following questions: A. If 15,000 units are produced, what is the variable cost per unit? B. If 28,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs? D. If 29,000 units are produced, what are the total variable costs? E. If 17,000 units are produced, what are the total manufacturing overhead costs incurred? F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred? G. If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred? H. If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred?Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.