FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- sarrow_forwardHelp me pleasearrow_forwardShock Electronics sells portable heaters for $49 per unit, and the variable cost to produce them is $29. Ms. Amps estimates that the fixed costs are $100,800. a. Compute the break-even point in units. Break-even point b. Fill in the following table (in dollars) to illustrate that the break-even point has been achieved. Sales Fixed costs Total variable costs Net profit (loss) units $ 0arrow_forward
- Clockmaker Ltd. makes a product called wallet. Managers from Clockmaker Ltd. want to achieve a profit of £82, 800. The wallet price equals £82 per unit. Each unit of wallet has a cost of £36 and annual total fixed costs equal £147, 200. Considering this information, which of the following statements is true? O a. To achieve the desired profit, Clockmaker Ltd. needs to sell 5, 000 units of wallet. O b. Clockmaker Ltd. would need to sell more than 3, 200 units of wallet to have positive profits. O c. Contribution per unit equals £46. O d. All the answers are true.arrow_forward1. Alpha and Beta companies produce the same product with different technology. The selling price (T) is €10 and the production capacities range from 50,000 to 150,000 for each company. The cost elementsfor Alpha are: Fixed costs (CRS)= €12,000 and Average Variable Cost (MMK) = €7, and for Beta business: SK = €25.000 and MME =€5. a) To find the quantity and value of a break-even point for each (b) Calculate the operational leverage ratio (MLM) at 90,000 and 130,000 units for A and B.arrow_forwardA firm has fixed operating costs of $100,000 and variable costs of$4 per unit. If it sells the product for $6 per unit, what is the breakeven quantity? (50,000)arrow_forward
- 1. Break-Even Point Hilton Enterprises sells a product for $118 per unit. The variable cost is $80 per unit, while fixed costs are $434,644. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $123 per unit. 2. Target Profit Trailblazer Company sells a product for $170 per unit. The variable cost is $60 per unit, and fixed costs are $572,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $200,200.arrow_forwardGladstorm Enterprises sells a product for $50 per unit. The variable cost is $34 per unit, while fixed costs are $14,560. 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 $60 per unit __________ unitsarrow_forwardAwla Ltd. sells two products as follows: Product A Product B Units sold 2,625 3,500 Selling price per unit $400 $350 Variable costs per unit $160 $210 The company has the following fixed costs: Product A, $590,000, Product B, $883,200, and common fixed costs of $293,200. Using the above information answer the following questions. What is the package contribution margin? What is the break-even in packages? How many units of Product A are required to break-even? How many units of Product B are required to break-even?arrow_forward
- Hunter Inc. sells a unique product with the following information available: Sales price Variable costs Fixed Costs Units produced and sold $85 per unit $25 per unit If one more unit is sold, net income will: $10,000 1,250 O increase by $60. O increase by $52. O decrease by $8. O decrease by $33.arrow_forward6. Longstreet Inc. has fixed operating costs of $370,000, variable costs of $2.80 per unit produced, and its product sells for $4.00 per unit. What is the company's break-even point, i.e., at what unit sales volume would income equal costs? а. 240,500 b. 357,667 с. 336,083 d. 308,333 e. 366,917arrow_forwardHD.arrow_forward
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