The following information is for Alex Corp:- **Product X:** - Revenue: $25.00 - Variable Cost: $5.00- **Product Y:** - Revenue: $20.00 - Variable Cost: $10.00- **Total fixed costs:** $57,500**Question:**What is the breakeven point, assuming the sales mix consists of two units of Product X and one unit of Product Y?**Options:**A) 1,150 units of Y and 2,300 units of X B) 1 unit of Y and 2,875 units of X C) 2,300 units of Y and 1,150 units of X D) 1,437.5 units of Y and 2,875 units of X

The Break-even point indicates that total units are to be sold by the business entity to recover its…

Answered: The following information is for Alex…

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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Breakeven point-Algebraic and graphical Fine Leather Enterprises sells its single product for $128.88 per unit. The firm's fixed operating costs are $472,200 annually, and its variable operating costs are $86.54 per unit. a. Find the firm's operating breakeven point in units. b. Label the x axis "Sales (units)" and the y axis "Costs/Revenues ($)," and then graph the firm's sales revenue, total operating cost, and fixed operating cost functions on these axes. In addition, label the operating breakeven point and the areas of loss and profit (EBIT). a. The operating breakeven point is units. (Round to the nearest integer.)
The total cost formula for a company can be modeled by TC = 12570+ 50x where x represents the number of items sold. A formula for the company's total income is modeled with TR 80x, where a represents the number of items sold. This company will breakeven when its total costs equal its total income. - How many items must this company sell to breakeven? Answer:
Benovan Co. reports the following data: Sales (@ unit selling price of P20) Less Variable Costs Contribution Margin Less Fixed Costs Operating Profit P 840,000 546.000 P 294,000 168.000 P 126,000 Rased on the above data, the following were determined by an accounting staff: ======== Sales Breakeven Sales in Breakeven Sales in units Volume UVC VC% UCM CM% DOL pesos The manager consulted you regarding the effects of the following changes on the company's breakeven sales in units, breakeven sales in pesos, Degree of Operating Leverage (DOL) and Operating Profit. Assuming all other factors remain the same, the following independent proposals were made: 1. Increase the sales volume by 25% New Sales Volume New BES in units New BES in Pesos New Operating Profit New DOL 2. Increase the fixed costs by 10% New DOL New Operating Profit New BES in Pesos New BES in units 3. Increase the unit variable costs to P14 New Operating Profit New DOL New BES in Pesos New BES in units Based on the three…
The following information is for Alex Corp: Product X: Revenue Variable Cost Product Y: Revenue Variable Cost Total fixed costs $12.00 $4.50 $25.00 $10.00 $40,500 What is the operating income, assuming actual sales total 120,000 units, and the sales mix is two units of Product X and one unit of Product Y? 1,960,000 1,240,500 1,200,000 1,159,500
Teague Co. reports the following data: Sales $489,300 Variable costs 278,900 Contribution margin $210,400 Fixed costs 170,700 Income from operations $39,700 Determine Teague Co.’s operating leverage. Round your answer to one decimal place.fill in the blank 1
REQUIRED: How much is the company's overall income?
1. What would be the gross margin for FPD if it accepted the transfer price that will be charged by CD?
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Total Sales are 500,000 OMR, Total Variable cost is 150000 OMR. Fixed cost is 200000 OMR Calculate Total profit Select one: O a. 265000 OMR O b. 180000 OMR O c. 150000 OMR O d. 500000 OMR
Your Company sells 3 products, A, B and C that use the same company, facility and resources. Details are below: A Average monthly units sold 10,000 2,000 8,000 Sales price per unit 2,000 1,000 5,000 Variable cost per unit 1,500 500 3,000 Total break even units are 1,000. 1. Calculate: i. Quantity and value of units of each A, B and C at breakeven Fixed cost based on the data given above ii. 2. Without making further calculations, explain that if fixed cost increases by 10% what impact would this have on the break-even point?
Tom Company reports the following data: Sales Variable costs Fixed costs Determine Tom Company's operating leverage. Round your answer to one decimal place. $156,332 81,532 30,800
Two different product lines are produced and sold by BANANABA Manufacturing Corp. Data with respect to each product lines follows: Product Banana Selling pricelunit Variable cost/unit Original sales mix P5.00 P10.00 4.00 60% 40% Babana 2.00 Monthly fixed cost and expenses - P90,000 Required: 1. Based on the original sales mix: What is the weighted contribution margin per unit? What is the combined units to break-even? How many number of units each product line needs in order to а. b. с. break-even? 2. Suppose the mix is 50% for each product line: What is the weighted contribution margin percentage? What is the combined peso sales of two products needed in order to а. b. earn a total profit of P30,000. С. How much peso sale should each product line be generated?

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