FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- How many units must it sell?arrow_forwardA company is analyzing its break-even point for a product with a selling price of $50 per unit. The variable cost per unit is $30, and the fixed costs are $200,000 per year. If the company wants to achieve a profit of $50,000, how many units must it sell to meet this profit goal?arrow_forwardHow many sell?arrow_forward
- An economist estimates the demand function as P = 1250 15Q, where P is in dollars and Q is in number of Ipads sold per week. They also estimates that expenses vary with output according to the following cost equation: TC = 5000 + 25Q - 7.5Q2 + 1/3 Q^3 Suppose intense competition brings down prices and revenues. Calculate at what prices will the firm for each of the following cases: a) Make a normal profit? b) Incurs a loss but should continue to produce in the short - run? c) Incurs a loss but should shut down? With P = 815 and Q = 29arrow_forwarda. what is the EOQ for a firm that sells 5,000 units when the cost of placing an order is $5 and the carrying cost are $3.50 per unit? b. how long will the EOQ last? how many orders are placed annually? c. as a result of lower interest rates, the finnancial manager determines the carrying cost are now $1.80 per unit. what are the new EOQ and annual number of objects?arrow_forwardQuantitative ProblemsSuppose QuickCharge Corporation manufactures phone chargers. They sell their chargers for $20. Their fixed operating costs are $100,000 and their variable operating costs are $10 per charger. Currently they are selling 30,000 chargers per year.What is QuickCharge’s EBIT (earnings before interest and taxes) at current sales of 30,000?What is QuickCharge’s breakeven point?Calculate the EBIT if QuickCharge’s sales increase 50% to 45,000 chargers. What is the percent of change in EBIT under this increase in sales? Also, calculate the EBIT if the company's sales decrease 50% to 15,000 chargers. What is the percent of change in EBIT under this decrease in sales?What is QuickCharge’s degree of operating leverage? Based on your computation, what does its operating leverage say about QuickCharge’s business risk?The StayDry Umbrella Corporation will have an EBIT of $100,000 if there is a normal amount of rain this year. But if there is a drought, they will have an EBIT of…arrow_forward
- (b) The cost of materials is expected to rise by 20%, while total fixed costs are expected to rise by RM13,000 per year:Calculate the number of units that must be sold for the company's net profit to be maintained. Assume that the rest of the data is unchanged. Determine a new break-even point and margin of safety in bottles if the selling price change to RM 6 per packet. Assume that all other variables remain constant. please provide calculations for each of them.arrow_forwardPlease Solve This General Accounting Questionarrow_forwardProblem: A certain product sells for $55. It has variable costs of $33 per unit and fixed costs of $300,000 per year. How many products must the company manufacture to break even?(Round your answer to nearest unit number)arrow_forward
- Suppose executives estimate that the unit variable cost for their DVD recorder is $100, the fixed cost related to the product is $10 million annually, and the target volume for next year is 100,000 recorders. What sales price will be necessary to achieve a target profit of $l million?arrow_forwardGive true answerarrow_forward1. What is the company's current breakeven in units and in dollars? 2. If the company expects to sell 260 premium garage doors in the upcoming year, and it does not develop the software control system, what is its expected operating income from premium garage doors? 3. If the software control system were to be developed and implemented, what would be the company's new breakeven point in units and in dollars? 4. If the company expects to sell 260 premium garage doors in the upcoming year, and it develops the software control system, what is its expected operating income from premium garage doors? 5. If the company expects to sell 260 premium garage doors in the upcoming year, do you think the company should implement the software control system? Why or why not? What factors should the company consider? pop-up content ends PrintDonearrow_forward
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