Question

Michael Vick has written a self-improvement book that has the following cost characteristics: Selling price $20.00...

Michael Vick has written a self-improvement book that has the following cost characteristics:
Selling price $20.00 per book
Variable cost per unit:
Production $5.00
Selling & administrative 3
Fixed costs:
Production $90,000 per year
Selling & administrative 12,000 per year
How many units must be sold to break-even?
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:

8,500 units

Calculation:

Selling Price (A) $                    20
Variable cost per unit [5+3] (B) $                      8
Contribution per unit (C=A-B) $                    12

Now,

Break even Point (in units) = Fixed Cost / Contribution per unit

= [90,000 + 12,000] / 12

= 8,500 units

In case of any doubt, please feel free to comment.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Tim Taylor has written a self improvement book that has the following cost characteristics: Selling Price...
Tim Taylor has written a self improvement book that has the following cost characteristics: Selling Price $16.00 per book Variable cost per unit: Production $4.00 Selling & administrative 2.00 Fixed costs: Production $91,600 per year Selling & administrative 25,200 per year How many units must be sold to break-even? Round to two decimal places. Your Answer:
Sales Mix and Break-Even Analysis Michael Company has fixed costs of $1,021,330. The unit selling price,...
Sales Mix and Break-Even Analysis Michael Company has fixed costs of $1,021,330. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price Variable Cost per Unit Contribution Margin per Unit Q $440 $240 $200 Z 560 500 60 The sales mix for products Q and Z is 35% and 65%, respectively. Determine the break-even point in units of Q and Z. If required, round your answers...
The following data pertain to last month's operations: Selling price $20 per unit Variable production cost...
The following data pertain to last month's operations: Selling price $20 per unit Variable production cost $12 per unit Fixed production cost $3,000 Variable selling & administrative expenses $3 per unit Fixed selling & administrative expenses $1,500 What is the break-even point in dollars?
A company has $25 per unit selling price, $7.00 per unit in variable production cost and...
A company has $25 per unit selling price, $7.00 per unit in variable production cost and $2.00 per unit in variable selling and administrative cost. The annual fixed production cost is $400,000. The annual fixed selling and administrative cost is $50,000. Complete the table below for each year. Assume a FIFO flow. 2016 Units Produced 120,000 Units Sold 110,000 1- Operating income under variable costing 2- Operating income under absorption costing
Beckham Company has the following information available: Selling price per unit               £100 Variable cost per unit          &nbs
Beckham Company has the following information available: Selling price per unit               £100 Variable cost per unit               £55 Fixed costs per year       £400,000 Expected sales per year 20,000 units What is the expected operating income (i.e. profit ) for a year? Select one: A. £500,000 B. £680,000 C. £700,000 D. £480,000 Johnson Company produces dolls. Each doll sells for £20.00. Variable costs per unit are £14.00 and total fixed costs for the period are £300,000. What is the break-even in sterling...
Yankee Corporation manufactures a single product. The company has the following cost structure: Variable costs per...
Yankee Corporation manufactures a single product. The company has the following cost structure: Variable costs per unit: Production $4 Selling and administrative $1 Fixed costs in total: Production $12,000 Selling and administrative $8,000 Last year, 4,000 units were produced and 3,500 units were sold. There were no beginning inventories. Under absorption costing, the cost of goods sold for the year would be:
Sormac Corporation manufactures and sells hand radios.  Price and cost data are as follows: Selling price per...
Sormac Corporation manufactures and sells hand radios.  Price and cost data are as follows: Selling price per unit $30.00 Variable cost per unit     Direct material $9.80     Direct labor $4.80     Manufacturing overhead $7.20     Selling expenses $1.90             Total Variable Cost per Unit $23.70 Annual fixed cost     Manufacturing overhead $96,800     Selling and administrative $42,400 Total Fixed Cost     $139,200 Forecasted annual sales volume (168,000 units) What is Sormac Corporation break-even point in units? What is the company’s break-even point in sales dollars? How many units...
Assume a fixed cost of $3,500, a variable cost of $7.25, and a selling price of...
Assume a fixed cost of $3,500, a variable cost of $7.25, and a selling price of 12.25. What is the break-even point? How many units must be sold to make a profit of $500,000? How many units must be sold to average $0.75 profit per unit? $1.25 profit per unit? And $1.75 per unit?
Baraban Corporation has provided the following data for its most recent year of operation: Selling price...
Baraban Corporation has provided the following data for its most recent year of operation: Selling price per unit $ 47 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 10 Direct labor $ 6 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 130,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 63,000 Units in beginning inventory 0 Units produced during the...
Neef Corporation has provided the following data for its two most recent years of operation: Selling...
Neef Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 84 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 12 Direct labor $ 5 Variable manufacturing overhead $ 4 Fixed manufacturing overhead per year $ 432,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 61,000 Year 1 Year 2 Units in beginning inventory...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT