Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 3, Problem 7MC
Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and their product has a per-unit contribution margin of $250, how many units must they sell to reach their target income?
A.20
B. 40
C. 60
D. 120
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution
margin ratio of 30%, how many units must they sell in order to break even?
A. 100
В. 180
C. 200
D. 2,000
A company's contribution margin per unit is $25. It the company increases its activity level from 200 units to
350 units, how much will its total contribution margin increase?
A. $1,250
B. $3,750
C. $5.000
D. $8,750
D Question 39
If the selling price per unit is $10, the unit contribution margin is $5, and total
fixed expenses are $15,000, what are the breakeven sales in units?
O 75,000
O 150,000
O 1,500
0 3,000
Chapter 3 Solutions
Principles of Accounting Volume 2
Ch. 3 - The amount of a units sales price that helps to...Ch. 3 - A companys product sells for $150 and has variable...Ch. 3 - A companys product sells for $150 and has variable...Ch. 3 - A companys contribution margin per unit is $25. It...Ch. 3 - A company sells its products for $80 per unit and...Ch. 3 - If a company has fixed costs of $6.000 per month...Ch. 3 - Company A wants to earn $5,000 profit in the month...Ch. 3 - A company has wants to earn an income of $60,000...Ch. 3 - A company has pre-tax or operating income of...Ch. 3 - When sales price increases and all other variables...
Ch. 3 - When sales price decreases and all other variables...Ch. 3 - When variable costs increase and all other...Ch. 3 - When fixed costs decrease and all other variables...Ch. 3 - When fixed costs increase and all other variables...Ch. 3 - If the sales mix in a multi-product environment...Ch. 3 - Break-even for a multiple product firm. can be...Ch. 3 - Waskowski Company sells three products (A. B. and...Ch. 3 - Beaucheau Farms sells three products (E, F, and G)...Ch. 3 - A company sells two products, Model 101 and Model...Ch. 3 - Wallace Industries has total contribution margin...Ch. 3 - Macom Manufacturing has total contribution margin...Ch. 3 - If a firm has a contribution margin of $59,690 and...Ch. 3 - If a firm has a contribution margin of $78M90 and...Ch. 3 - Define and explain contribution margin on a per...Ch. 3 - Define and explain contribution margin ratio.Ch. 3 - Explain how a contribution margin income statement...Ch. 3 - In a cost-volume-profit analysis, explain what...Ch. 3 - What is meant by a products contribution margin...Ch. 3 - Explain how a manager can use CVP analysis to make...Ch. 3 - After conducting a CVP analysis, most businesses...Ch. 3 - Explain how for is possible for costs to change...Ch. 3 - Explain what a sales mix is and how changes in the...Ch. 3 - Explain how break-even analysis for a...Ch. 3 - Explain margin of safety and why it is an...Ch. 3 - Define operating leverage and explain its...Ch. 3 - Calculate the per-unit contribution margin of a...Ch. 3 - Calculate the per-unit contribution margin of a...Ch. 3 - A product has a sales price of $150 and a per-unit...Ch. 3 - A product has a sales price of $250 and a per-unit...Ch. 3 - Maple Enterprises sells a single product with a...Ch. 3 - Marlin Motors sells a single product with a...Ch. 3 - Flanders Manufacturing is considering purchasing a...Ch. 3 - Marchete Company produces a single product. They...Ch. 3 - Brahma Industries sells vinyl replacement windows...Ch. 3 - Salvador Manufacturing builds and sells...Ch. 3 - Salvador Manufacturing builds and sells...Ch. 3 - Use the information from the previous exercises...Ch. 3 - Company A has current sales of $10,000,000 and a...Ch. 3 - Marshall s target margin of safety be in units and...Ch. 3 - Calculate the per-unit contribution margin of a...Ch. 3 - Calculate the per-unit contribution margin of a...Ch. 3 - A product has a sales price of $175 and a per-unit...Ch. 3 - A product has a sales price of $90 and a per-unit...Ch. 3 - Cadre, Inc., sells a single product with a selling...Ch. 3 - Kerr Manufacturing sells a single product with a...Ch. 3 - Delta Co. sells a product for $150 per unit. The...Ch. 3 - Shonda & Shonda is a company that does land...Ch. 3 - Baghdad Company produces a single product. They...Ch. 3 - Keleher Industries manufactures pet doors and...Ch. 3 - Manufacturing builds and sells switch harnesses...Ch. 3 - Manufacturing builds and sells switch harnesses...Ch. 3 - Use the information from the previous exercises...Ch. 3 - Company A has current sales of $4,000,000 and a...Ch. 3 - Best Wholesale recently calculated their...Ch. 3 - A company sells small motors as a component part...Ch. 3 - A company manufactures and sells racing bicycles...Ch. 3 - Fill in the missing amounts for the four...Ch. 3 - Markham Farms reports the following contribution...Ch. 3 - Kylies Cookies is considering the purchase of a...Ch. 3 - Morris Industries manufactures and sells three...Ch. 3 - Manatoah Manufacturing produces 3 models of window...Ch. 3 - Jakarta Company is a service firm with current...Ch. 3 - A company sells mulch by the cubic yard. Grade A...Ch. 3 - A company manufactures and sells blades that are...Ch. 3 - Fill in the missing amounts for the four...Ch. 3 - West Island distributes a single product. The...Ch. 3 - Wellington, Inc., reports the following...Ch. 3 - Karens Quilts is considering the purchase of a new...Ch. 3 - Abilene Industries manufactures and sells three...Ch. 3 - Tim-Buck-Il rents jet skis at a beach resort....Ch. 3 - Fire Company is a service firm with current...Ch. 3 - Mariana Manufacturing and Bellow Brothers compete...Ch. 3 - Roald is the sales manager for a small regional...Ch. 3 - As a manager, you have to choose between two...Ch. 3 - Coutures Creations is considering offering Joe, an...
Additional Business Textbook Solutions
Find more solutions based on key concepts
The Hurley Hat Company manufactures baseball hats. Hurleys primary customers are sporting goods stores that sup...
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Loder Company had a good year, and recorded a large gain on the sale of a discontinued business segment. Bates ...
Financial Accounting
Quick ratio and current ratio (Learning Objective 7) 1520 min. Consider the following data: COMPANY A B C D Cas...
Financial Accounting, Student Value Edition (4th Edition)
Which of these transactions would be part of the financing section? A. inventory purchased for cash B. sales of...
Principles of Accounting Volume 1
The carrying value on bonds equals Bends Payable a.minus Premium on Bonds Payable. b.plus Discount on Bonds Pay...
Financial Accounting (12th Edition) (What's New in Accounting)
Discussion Questions 1. What characteristics of the product or manufacturing process would lead a company to us...
Managerial Accounting (4th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Question 5 Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs per baby hamper of $100. The company’s monthly fixed expenses are $200,000. Required: a) What is the company’s break-even point in units? b) What is the company’s margin of safety in dollars, assume sales is expected to be $800,000? c) How many baby hampers will Micol & Co. Ltd need to sell (in sales dollars) in order to realize a target profit of $500,000? d) Construct a contribution margin income statement for the first month (in July) that reflects $2,400,000 in sales revenue for Micol & Co. Ltd. e) Provide two suggestions to Micol & Co. Ltd on how it can increase profit in subsequent months? SHOW YOUR WORKINGarrow_forwardIf a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000arrow_forwardA companys product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin per unit? A. $40 B. $60 C. $90 D. $150arrow_forward
- A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the contribution margin per unit? A. $30 B. $50 C. $80 D. $110arrow_forwardQUESTION 4 It costs Mills, Inc. $5 per unit to manufacture 1290 units per month of a product that it can sell for $38 each. Alternatively, Mills could process the units further into a more complex product, which would cost an additional $31 per unit. Mills could sell the more complex product for $72 each. What is the incremental revenue if Mills decides to process further?arrow_forwardQUESTION 1 B Limited produces and sells the following three products: Product X Y Z Selling price per unit (N$) 16 20 10 Variable cost per unit(N$) 5 15 7 Contribution per unit(N$) 11 5 3 Budgeted Sales Volume (units) 50,000 10,000 100,000 The company expects the fixed costs to be N$300000, for the coming year. Assume that sales arise throughout the year in a constant mix. Required: (a) Draw a multiproduct profit volume chart assuming the budget is achieved.arrow_forward
- QUESTION 1 B Limited produces and sells the following three products: Product X Y Z Selling price per unit (N$) 16 20 10 Variable cost per unit(N$) 5 15 7 Contribution per unit(N$) 11 5 3 Budgeted Sales Volume (units) 50,000 10,000 100,000 The company expects the fixed costs to be N$300000, for the coming year. Assume that sales arise throughout the year in a constant mix. Required: (a)Calculate the weighted average contribution sales ratio (C/S ratio) of the products? (b)Calculate the break-even sales revenue required AND Calculate the margin of safety. (c)Calculate the amount of sales revenue required to generate a profit of N$600000. (d)Draw a multiproduct profit volume chart assuming the budget is achieved.arrow_forwardQUESTION 20 A company sells mattresses for $390 each. To produce a batch of æ mattresses, there is a cost of $198 per mattress and a fixed or setup cost of $10,700 for the entire batch. Determine a function that gives the profit in terms of the number of mattresses produced. What will the company's profit be, in dollars, if they produce and sell 190 mattresses? Include a negative sign in your answer if the profit is negative. Provide your answer below:arrow_forward19 Lester Company has a single product. The selling price is P50 and variable cost is P30 per unit. The company’s fixed expenses are P200,000 per month. What is the company’s unit contribution margin? P20 P80 P30 P50arrow_forward
- PROBLEM 3: The company expected to sell 45,000 units next year with the following results: Sales P900,000 Variable costs 540,000 360,000 150,000 210,000 84,000 P126,000 Contribution margin Fixed costs Income before taxes Income taxes Net income a. If the company wants an after-tax return on sales of 15% on its expected volume of 45,000 units, what price must it charge? a. 19.66 b. 20.44 c. 20.22 d. 22.22arrow_forward3 SITUATION 17: The cost of producing a calculator consists of $250.00 per unit for labor and material cost, $75.00 per unit for other variable cost. The fixed cost per month amounts to $900,000. The calculator is sold at #1,200 per unit, 71. What is the break-even quantity per month? a. 1029 c. 1209 b. 1092 d. 1902 72. How many units must be produced each month in order that the net profit is $25,000 more than its cost? a. 3139 c. 3913 b. 3319 d. 3391arrow_forwardQuestion 4 A company sells one of its products for $11.30 per unit. Its fixed costs are $1,118.00 per month, and the variable cost per unit is $2.70. (a) The contribution margin per unit is $ (rounded to the nearest cent). (b) The break-even volume, i.e., the level of output at break-even, is per month. (If necessary, round up to the next whole number of units.) (c) The profit at a monthly output level of 480 units is $ nearest cent). > Next Question (rounded to the unitsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Cost-Volume-Profit (CVP) Analysis and Break-Even Analysis Step-by-Step, by Mike Werner; Author: Accounting Step by Step;https://www.youtube.com/watch?v=D0MOfse9OWk;License: Standard Youtube License