Rako Benson Company incurs annual fixed costs of $54,160. Variable costs for Benson's product are $34 50 per unit, and the sales price is$50.00 per unit. Benson desires to earn an annual profit of $50,000RequiredUse the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profitNote: Do not round intermediate calculations. Round your final answers to the nearest whole number.Sales in dollarsSales volume in units

Net income is the difference between contribution margin and fixed costs. Contribution margin is…

Answered: Benson Company incurs annual fixed…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CE

See similar textbooks

Similar questions

Munoz Company incurs annual fixed costs of $121,320. Variable costs for Munoz's product are $22.40 per unit, and the sales price is $35.00 per unit. Munoz desires to earn an annual profit of $45,000. Required Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit. Note: Do not round intermediate calculations. Round your final answers to the nearest whole number. Sales in dollars Sales volume in units
Franklin Company incurs annual fixed costs of $133,500. Variable costs for Franklin's product are $29.70 per unit, and the sales price is $45.00 per unit. Franklin desires to earn an annual profit of $45,000. Required Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit. Note: Do not round intermediate calculations. Round your final answers to the nearest whole number. Sales in dollars Sales volume in units
Rooney Company incurs annual fixed costs of $128,075. Variable costs for Rooney's product are $29.25 per unit, and the sales price is $45.00 per unit. Rooney desires to earn an annual profit of $52,000. Required Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in units
Jordan Company incurs annual fixed costs of $51,415. Variable costs for Jordan's product are $3015 per unit, and the sales price is $45.00 per unit. Jordan desires to earn an annual profit of $56,000. Required Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in units
Spectrum Corp. makes two products: C and D. The following data have been summarized: (Click the icon to view the data.) Spectrum Corp. desires a 25% target gross profit after covering all product costs. Considering the total product costs assigned to the Products C and D, what would Spectrum have to charge the customer to achieve that gross profit? Round to two decimal places. Begin by selecting the formula to compute the amount that the company should charge for each product. Required sales price per unit Data table Direct materials cost per unit Direct labor cost per unit Indirect manufacturing cost per unit Total costs assigned Print $ $ Product C 600.00 $ 300.00 270.00 1,170.00 S Done - X Product D 2,400.00 200.00 604.00 3,204.00
Lin Corporation has a single product whose selling price is $136 per unit and whose variable expense is $68 per unit. The company's monthly fixed expense is $32,000. Required: 1. Calculate the unit sales needed to attain a target profit of $7,100. Note: Do not round intermediate calculations. 2. Calculate the dollar sales needed to attain a target profit of $9,200. Note: Round your intermediate calculations to the nearest whole number. 1. Units sales to attain target profit 2. Dollar sales to attain target profit units
Jordan Company incurs annual fixed costs of $67,740. Variable costs for Jordan's product are $28.80 per unit, and the sales price is $45.00 per unit. Jordan desires to earn an annual profit of $57,000. Required Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.)
Munoz Company incurs annual fixed costs of $125,220. Variable costs for Munoz’s product are $28.80 per unit, and the sales price is $45.00 per unit. Munoz desires to earn an annual profit of $60,000. Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.)
Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The company's monthly fixed expense is $32,250. Required: 1. Calculate the unit sales needed to attain a target profit of $8,000. Note: Do not round intermediate calculations. 2. Calculate the dollar sales needed to attain a target profit of $8,700. Note: Round your intermediate calculations to the nearest whole number.
Gladstorm Enterprises sells a product for $50 per unit. The variable cost is $34 per unit, while fixed costs are $9,856. Determine the following: Round your answers to the nearest whole number. a. Break-even point in sales units units b. Break-even point in sales units if the selling price increased to $62 per unit units
Summer Company sells a product with a contribution margin ratio of 54%. Fixed costs per month are $630. What amount of sales (in dollars) must Summer Company have to earn an operating of $6,400? If each unit sells for $25.00, how many units must be sold to achieve the desired operating income?(Round your answers to two decimal places when needed and use rounded answers for all future calculations and write unit answers in whole units when needed.)
Versa Inc. sells a product for $100 per unit. The variable cost is $75 per unit, and fixed costsare $45,000. Determine (a) the break-even point in sales units and (b) the break-even point insales units if the company desires a target profit of $25,000.

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning