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.RequiredUse 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 dollarsSales volume in units

To determine the sales volume in dollars and units required to earn the desired profit using the…

Answered: Franklin Company incurs annual fixed…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.)
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
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.)
The unit selling price is $11 and the variable cost per unit is $5 and the total fixed costs are $147,921. What are the required sales in dollars to earn a net income of $444,253? Round the contribution margin ratio to at least seven decimal places for your calculation. Round only your final answer to the nearest one dollar and do not type the dollar sign.
Perez Company incurs annual fixed costs of $120,540. Variable costs for Perez’s product are $27.90 per unit, and the sales price is $45.00 per unit. Perez desires to earn an annual profit of $63,000. RequiredUse the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. Do not round answer to the nearest whole number
Gladstorm Enterprises sells a product for $46 per unit. The variable cost is $30 per unit, while fixed costs are $12,096. Determine the following: Round your answers to the nearest whole number. a. Break-even point in sales units b. Break-even point in sales units if the selling price increased to $58 per unit units 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
Gladstorm Enterprises sells a product for $53 per unit. The variable cost is $36 per unit, while fixed costs are $9,367. Determine the following: Round your answers to the nearest whole number.
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.)
XYZ Inc. sells a product for OMR 2.5 per unit. The variable cost is OMR 1.7 per unit, and fixed costs are OMR 1500. Using the Equation method Determine (a) the break-even point in sales if total fixed costs increased to OMR 2500 and, (b) the required sales in units if the company desires a target profit of OMR 3,200 assuming fixed cost remained the same at OMR 1,500.
Sharp Company makes and sells pencil sharpeners. The variable cost of each sharpener is $20. The sharpeners are sold for $30 each. Fixed operating expenses amount to $40,000. a. Determine the break-even point in units and sales dollars. b-1. Determine the sales volume in units and dollars that is required to attain a profit of $12,000. b-2. Prepare an income statement using the contribution margin format to verify your answer. c. Determine the margin of safety between sales required to attain a profit of $12,000 and break-even sales.
Rundle Company makes a product that sells for $33 per unit. The company pays $22 per unit for the variable costs of the product and incurs annual fixed costs of $103,400. Rundle expects to sell 22,900 units of product. Required Determine Rundle's margin of safety expressed as a percentage. Note: Round your answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45) Margin of safety % < Prev 16 of 16 Next

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