FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Hilton Inc. sells a product for $94 per unit. The variable cost is $63 per unit, while fixed costs are $142,228. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $100 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $100 per unit fill in the blank 2 unitsarrow_forwardVishnuarrow_forwardFinley Corporation has monthly fixed costs of $240,000. It sells two products for which it has provided the following information. Sales Price Product 1 $ Product 2 35 40 Contribution Margin $ 21 10 a. What total monthly sales revenue is required to break even if the relative sales mix is 20 percent for Product 1 and 80 percent for Product 2? (Hint: Determine the contribution margin ratio for each product.) b. What total monthly sales revenue is required to earn a monthly operating income of $105,000 if the relative sales mix is 60 percent for Product 1 and 40 percent for Product 2?arrow_forward
- Mauro Products distributes a single product, a woven basket whose selling price is $19 per unit and whose variable expense is $15 per unit. The company's monthly fixed expense is $11,200. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) 1. Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales 3. Break-even point in dollar sales baskets basketsarrow_forwardMauro Products distributes a single product, a woven basket whose selling price is $17 per unit and whose variable expense is $13 per unit. The company’s monthly fixed expense is $8,400. Required: 1. Calculate the company’s break-even point in unit sales. 2. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) 1. Break-even point in unit sales baskets 2. Break-even point in dollar sales 3. Break-even point in unit sales baskets 3. Break-even point in dollar salesarrow_forwardNonearrow_forward
- Mauro Products distributes a single product, a woven basket whose selling price is $25 per unit and whose variable expense is $19 per unit. The company's monthly fixed expense is $ 15,600. Required: Calculate the company's break - even point in unit sales. Calculate the company's break - even point in dollar sales. Note: Do not round intermediate calculations. If the company's fixed expenses increase by $600, what would become the new break - even point in unit sales? In dollar sales? Note: Do not round intermediate calculations.arrow_forwardHelp fill out pleasearrow_forward! Required information [The following information applies to the questions displayed below] Jaffre Enterprises distributes a single product whose selling price is $13 per unit and whose variable expense is $8 per unit. The company's fixed expense is $14.500 per month. 2. Calculate the company's break-even point in unit sales. Unit sales to break even: unitsarrow_forward
- Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $120 per unit. Variable expenses are $84 per stove, and fixed expenses associated with the stove total $ 154,800 per month. Required: What is the break - even point in unit sales and in dollar sales? If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break - even point? (Assume that the fixed expenses remain unchanged.) At present, the company is selling 17,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. Refer to the data in Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $77,000 per month? Complete…arrow_forwardOutback Outfitters sells recreational equipment. One of the company’s products, a small camp stove, sells for $90 per unit. Variable expenses are $63 per stove, and fixed expenses associated with the stove total $121,500 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 11,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $71,000 per month?arrow_forwardMunabhaiarrow_forward
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