Dance Unlimited plans to sell 10,000 ballet shoes at $50 each in the coming year. The per-unit variable cost is $30, and the total fixed cost equals $65,000
Q: Felix Inc. manufactures cameras and has monthly demand and capacity of 14,000 units and 16,000 units…
A: Felix Inc. has an excess capacity of 2,000 units. So to accept the special order of 3,000 units,…
Q: Derby Phones is considering the introduction of a new model of headphones with the following price…
A: As more than one subquestions are asked I am providing the answer for first three requirements.
Q: Stevie's Scooters plans to sell a standard scooter for $850 and a chrome scooter for $1350. Stevie's…
A: At Breakeven, There is no profit no loss i.e. Total revenue = Total costAt Breakeven point,…
Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit,…
A: Contribution margin is the price of the product deduct all the linked variable costs, results from…
Q: Yerke Company makes and sells jungle gyms and tree houses for children. For jungle gyms, the price…
A: Break-even point is the level of sales at which the firm earns no profit and incurs no losses. Total…
Q: The ordering cost for a certain product is $8 per order and the holding cost is $1 per year. The…
A: Ordering Cost :— It is the expenses incurred by company for ordering of product. Holding cost :—…
Q: Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs…
A: Margin of safety means the difference between the budget sales and breakeven sales. It means the…
Q: Kelvin Co. produces and sells socks. Variable costs are budgeted at $4 per pair, and fixed costs for…
A: Variable costs are those costs that keeps on changing with change in the output level, which implies…
Q: b) Ceria Company plans to sell 5,000 bicycle helmets at RM75 each in the coming year. Variable cost…
A: Break even point in sales = Total Fixed costs / Contribution margin ratio = RM49500/40% = RM123,750
Q: Newcastle Ltd manufactures and sells T-shirts imprinted with college names and slogans. Last Year,…
A: Contribution margin = selling price - variable cost Net operating profit = Contribution margin -…
Q: The Sock company buys hiking socks for GHS6 per pair and sells them for GHs 10.…
A: Break Even Point(BEP) is the point of sale where there is no profit and no loss for the company,…
Q: Kelvin Co. produces and sells socks. Variable costs are budgeted at $4 per pair, and fixed costs for…
A: The Break-even point is the point at which the company’s costs and revenue are equal and it makes no…
Q: break-even point?
A: Break even point in units = Fixed cost / Contribution margin per unit
Q: Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last…
A: Break-even point: It is a point when the company is at no gain and no loss situation. It is…
Q: Acme Brick Company has an order to make 25,000 bricks. It normally charges $6.95 per brick but this…
A: Formula used: Break even units = Fixed cost / Unit Contribution margin Division of Unit contribution…
Q: Baker Company has a product that sells for $20 per unit. The variable expenses are $12 per unit, and…
A: Lets understand the basic terms here. Contribution is a sales less variable cost. In other words it…
Q: Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last…
A: Particulars Amount ($) Sales price per unit 7.50 Less: Variable Cost (2.25) Contribution Per…
Q: Karishtha Company have a plan to sell 10,000 shirts at $15 each in the coming year. Product costs…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: The flowers cost the store $9.50 for each arrangement. The vase costs $8. The florists are paid $12…
A: Introduction:- Cost-based Pricing question of a florists managing his cost and pricing for…
Q: COVID 19 Co. currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit,…
A: Units need to sell for desired profit = (Fixed costs + Desired profit) / Contribution margin per…
Q: The DeWayne Company sells binoculars for $150 per unit. The variable cost is $100 per unit while the…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Pens and Prints manufactures and sells T-shirts imprinted with college names and slogans. Last year,…
A: Solution: Last year contribution margin per unit = $7.50 - $2.25 = $5.25 per unit Before tax net…
Q: Monet Company plans to sell 10,000 motorcycle helmets at P1,000 each in the coming year. Variable…
A: Break Even Point in Units: = Fixed Costs ÷ Contribution Margin per Unit Break Even Point in…
Q: Bosco Company sells boxes of cookies and has total fixed costs of $200,000 per month. Variable…
A: Given, Seeking price = 10 per unit Variable cost = 8 per unit Contribution = 2 per unit Fixed cost…
Q: Farmers Choice’ produces animal feed. The fixed monthly cost of production is $700000 and the…
A: Answer a) Calculation of Total Cost if 700 bags are sold Total Cost = Fixed Cost + Variable Cost…
Q: Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last…
A: Breakeven sales units = Fixed costs/Contribution per unit So, Fixed costs = Breakeven sales…
Q: Vallie Enterprise sells a product that costs $200 per unit and has a monthly demand of 500 units.…
A: Economic order Quantity: It is the quantity level at which holding costs and ordering costs is…
Q: Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Variable cost is…
A: Break-even sales is the amount of sales where the net income is zero. Contribution margin is given…
Q: Dona Corporation manufactures and sells T-shirts imprinted with college name and slogans. Last year,…
A: Net income refers to the amount of income computed after deducting sales from cost of goods sold ,…
Q: A company estimates that it can sell 4,000 units each month of its product if it prices each unit at…
A: When 4000 units are sold: Sale Value = 4000*80 = $3,20,000 Total Cost = Fixed Cost + Unit Production…
Q: Knoll, Inc. currently sells 51,000 units a month for $98 each, has variable costs of $68 per unit,…
A: Calculate the amount of prior profit before the price change.
Q: Derby Phones is considering the introduction of a new model of headphones with the following price…
A: Operating profit refers to the income of the company that is earned by the main operations of the…
Q: Unan Inc. has decided to focus strictly on producing and selling one type of pillow. For the coming…
A: There are two type of costs which are incurred in business. Fixed costs are costs which will not…
Q: sell 20,000 shirts to break even
A: Net operating profit refers to profit excluding cost and tax benefits of debt financing.
Q: eather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit.…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Tiktok Company distributes a lightweight lawn chair that sell for P150 per unit. Variable costs are…
A: Here the first step is determine the existing level of profits. Once this is done then we will have…
Q: a sports club manufactures and sells T-shirts imprinted with names and slogans. Last Year, the…
A: Selling price for last year = 7.50 per shirt Revised selling price = 7.5 + 1.5 = 9 per shirt…
Q: You are selling a new line of T-shirts on the boardwalk. The selling price will be $25 per shirt.…
A: Break even point in units = Fixed costs / contribution margin per unit Break even point in sales…
Q: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of $22…
A: A company's contribution margin ratio (CM ratio) seems to be equal to revenue minus all variable…
Q: Riley's Rugs has a unit selling price of $120, unit variable cost of $40, and fixed costs of $35,000…
A: Contribution margin = sales - variable cost
Q: Kelvin Co. produces and sells socks. Variable costs are budgeted at $4 per pair, and fixed costs for…
A: Required sale for target profit is a part of cost volume profit analysis. It can be calculated by…
Q: Mueller Corp. manufactures flash drives that sell for $5.00. Fixed costs are $28,000 and variable…
A: Answer: Given, Fixed cost TFC $28,000 Variable cost UVC $3.60 per unit Selling price SP $5 per unit…
Q: How much is the break-even point in units?
A: Break Even Point in Units = Fixed Costs / Contribution Per Unit Fixed Costs = $164500 Contribution…
Q: Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs…
A: Breakeven units is the units where at those units there is no loss or no profit. Breakeven in units…
Q: Company XYZ is planning to sell 20,000 units at a price of $5 per unit during the month of December.…
A: Following is the answer to given question
Q: ) Robeson Company estimates it will produce and sell 3,000 units next month. Data on costs follows:…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
Q: Tiktok Company distributes a lightweight lawn chair that sell for P150 per unit. Variable costs are…
A: Number of additional units sold = Increase in sales/selling price
Dance Unlimited plans to sell 10,000 ballet shoes at $50 each in the coming year. The per-unit variable cost is $30, and the total fixed cost equals $65,000.
Required:
A. Calculate the break-even number of ballet shoes.
fill in the blank 1 ballet shoes
B. Calculate the break-even sales dollars.
$fill in the blank 2
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Marikina Shoe Manufacturing Company will produce a special-style shoe if the order size is large enough to provide a reasonable profit. For each special -style order, the company incurs a fixed cost of P20,000 for the production set up. The variable cost is P600 per pair, and each pair sells for P800. a. Let x indicate the number of pairs of shoes produced. Develop a mathematical model for total cost of producing x paiars of shoes. b. Let P indicate the total profit. Develop a mathematical model for the total profit realized from an order for x pairs of shoes. c. How large must the order be for Marikina to breakeven?Currently, Sweet Treats Bakery sells 1,200 cupcakes per month. The owners would like to increase net income above what is currently earned. Fixed costs are $1,500 per month and their contribution margin is $3 per cupcake. What would be a reasonable net income goal? O $1,800 O $2,600 O $2,100 O $5,600Music Now plans to sell 6,000 MP3 players at $60 each in the coming year. Variable cost per unit is $12 and total fixed cost is $24,000. Required: A. Calculate the variable cost ratio.fill in the blank 1 % B. Calculate the contribution margin ratio.fill in the blank 2 % C. Calculate the break-even point in sales dollars.$fill in the blank 3 D. If Music Now has a target profit of $90,000, how many MP3 players will it have to sell?fill in the blank 4 MP3 players
- Sheridan Recreation Products sells the Amazing Foam Frisbee for $19. The variable cost per unit is $6; fixed costs are $26,000 per month. (a) Your Answer Correct Answer Your answer is correct. What is the breakeven point in units? In sales dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars. Round answers to O decimal places, eg. 5,275) The breakeven point The breakeven sales (b) eTextbook and Media Solution $ eTextbook and Media Save for Later 2000 frisbees 38000 How many frisbees must Sheridan sell to earn $39,000 in monthly operating income? (Round answer to O decimal places, eg. 5,275) frisbees Attempts: unlimited Attempts: unlimited Submit Ar (c) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the part above.Calculating breakeven point for two products Scotty’s Scooters plans to sell a standard scooter for $55 and a chrome scooter for $70. Scotty’s purchases the standard scooter for $30 and the chrome scooter for $40. Scotty’s expects to sell one standard scooter for every three chrome scooters. Scotty’s monthly fixed costs are $23,000. Requirements How many of each type of scooter must Scotty’s Scooters sell each month to break even? How many of each type of scooter must Scotty’s Scooters sell each month to earn $25,300? 3 Suppose Scotty’s expectation to sell one standard scooter for every three chrome scooters was incorrect and for every four scooters sold two are standard scooters and two are chrome scooters. Will the breakeven point of total scooters increase or decrease? Why? (Calculation not required.)Stevie's Scooters plans to sell a standard scooter for $850 and a chrome scooter for $1350. Stevie's purchases the standard scooter for $450 and the chrome scooter for $600. Stevie's expects to sell one standard scooter for every three chrome scooters. Stevie's monthly fixed costs are $715,500. Requirement 1. How many of each type of scooter must Stevie's Scooters sell each month to break even? Start by selecting the formula and entering the amounts to compute the breakeven point in units for the "package" of products—total scooters to be sold. (Enter a "0" for any zero balances. Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted-average contribution margin.) ? ? ? ? ( Fixed costs + Target profit ) ÷ Weighted-avg. CM per unit = Required sales in units ( + ) ÷ = Requirements Dialog…
- Adidas has developed a new shoe that can be sold for RO 300 a pair. Management requires a profit equal to 60 percent of the selling price. Determine the target cost of this product. a. RO 120 b. RO 12,000 c. RO 180 d. RO 18,000Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $100 per unit and has a CM ratio of 40%. The company's fixed expenses are $459,000 per year. The company plans to sell 12,000 knapsacks this year. Required: 1. What are the variable expenses per unit? Variable expenses per unit 2. Use the equation method for the following: a. What is the break-even point in units and in sales dollars? Break-even point in units Break-even point in sales dollars b. What sales level in units and in sales dollars is required to earn an annual profit of $99,000? Sales in units Sales in dollars c. What sales level in units is required to earn an annual after-tax profit of $99,000 if the tax rate is 25%? Sales in units d. Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $5 per unit. What is the company's new break-even point in units and in sales dollars? (Do not round intermediate…Reggie'sReggie's Repair Shop has a monthly target profit of $15,000. Variable costs are 75% of sales, and monthly fixed costs are $10,000. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Reggie's margin of safety as a percentage of target sales.
- Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics. Sales price $ 18 per unit Variable costs 7 per unit Fixed costs 27,000 per month Assume that the projected number of units sold for the month is 7,000. Consider requirements (b), (c), and (d) independently of each other. Required: a. What will the operating profit be? b. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? c. What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? d. Suppose that fixed costs for the year are 10 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much?Calculate the number of helmets Head-First must sell to earn operating income of $81,900. _____________helmets Refer to the list below for the exact wording of text items within your income statement. Amount Descriptions Operating income Operating loss Sales Total contribution margin Total fixed cost Total variable cost Units to Earn Target Income Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the number of helmets Head-First must sell to earn operating income of $81,900. 2. Check your answer by preparing a contribution margin income statement based on the number of units calculatedThe big shoe company are planning production for next year. The selling price is $30 per pair, raw materials cost $7.50 and labor $5.50 per pair. Fixed costs are $150,000. Planned production for next year is 12,500 pairs. Required a) Calculate the marginal cost per pair; the absorption cost per pair; the break even point and a break even graph in steps of 100 pairs. The profit or loss is 12,500 pairs are sold. b) Flashsale offers to buy 2,500 pairs of boots at $20 a pair. This is within capacity and fixed costs will stay the same. Please advise the management whether or not to accept the order. c) A manufacturer in Slaka has offered to make the boots for $20 a pair up to 10,000 pairs and $15 a pair above this level. Big shoe would stop production and act as distributers. Fixed costs would fall to $50,000 every year. Advise management of the financial consequences of accepting this offer d) What other issues apart from finance does the Big Shoes Company need to consider?