FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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morning view industries manufactures and sells a product for $100 per unit. the annual fixed costs of manufacturing and selling the product are $85,840 and the variable costs are $65 per unit. the company’s break‑even point in units is
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- A company has set its initial selling price at $28 per unit. Its variable manufacturing costs are $10 per unit produced. Its variable selling and administrative costs are $2 per unit sold. The company’s fixed manufacturing costs are $300,000 per period and its fixed selling and administrative costs are $150,000 per period. The company’s target profit is $200,000 per period. What is the breakeven point in units? What is the breakeven point in dollars? How many units must be sold to achieve the target profit? If the fixed costs increase by 20%, how many units must be sold to achieve the target profit?arrow_forwardsarrow_forwardWren Co. manufactures and sells two products with selling prices and variable costs as follows: A) selling price $18.00, variable costs $12.00, and B) selling price $22.00, variable costs $14.00. Wren's total annual fixed costs are $38,400. Wren sells four units of A for every unit of B. If operating income was $28,800 what was the number of units Wren sold?arrow_forward
- Sunn Company manufactures a single product that sells for $210 per unit and whose variable costs are $168 per unit. The company's annual fixed costs are $575,400. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. 1 Numerator: (c) Compute the company's break-even point in units. 1 1 Numerator: Denominator: Numerator: Denominator: (d) Compute the company's break-even point in dollars of sales. 1 1 Denominator: II Contribution Margin Ratio Contribution margin ratio Break-Even Units Break-even units 0 Break-Even Dollars Break-even dollars 4arrow_forwardMorris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Morris Industries data Product Sales Price per Unit Variable Cost per Unit AA $42 $34 BB 64 38 CC 81 47 Their sales mix is reflected as a ratio of 10:1:2. Annual fixed costs shared by the three products are $330,092 per year. What is their break-even point in sales dollars? Do not round until submitting your final answer. Round to the whole dollar, no decimals.arrow_forwardA company spent $30,000 on development of a new product. The variable cost to get the product to customers is $3 per unit, and the price the company charges per unit is $20. What is the break-even quantity?arrow_forward
- Maple Enterprises sells a single product with a selling price of $87 and variable costs per unit of $26. The company's monthly fixed expenses are $15,356. What dollar sales will Maple need in order to reach a target profit of $26,540? Round to the nearest whole dollar, no decimals.arrow_forwardYusuf Company sells a product for $220 per unit. The variable cost is $170 per unit, and fixed costs are $180,000. Determine (a) the break-even point in sales units and (b) the sales units required to achieve a target profit of $56,000.arrow_forward
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