Question

Sequoah Company sells its product for $58 and has variable costs of $30 per unit. The total fixed costs are $40,000. What will be the effect on the breakeven point in units if variable costs increase by $6 due to an increase in the cost of direct materials?

Answer #1

**Break Evn Points (Units) =**
**Fixed
Costs**

**Sales price per unit - Varaible cost per
unit**

**= $40,000**

**$58 -$30**

**= $40,000/28**

**=Approx 1429 Units**

**Now if Variable cost increase by $6 Revise Break even is
as follow**

**= $ 40,000
**

**$58 - ($30 + $6)**

**= $40,000**

**$58 - $36**

**= $40,000
**

**$22**

**= Approx 1818 Units**

**So because of Increse in variable cost by $6 break even
point increase from 1429 units to 1818 units.**

Gandolph Company manufactures a product with the following costs
per unit at the expected production of 30,000 units:
Direct materials
$ 4
Direct labor
12
Variable manufacturing overhead
6
Fixed manufacturing overhead
8
The company has the capacity to produce 40,000 units. The product
regularly sells for $40. A wholesaler has offered to pay $32 a unit
for 2,000 units.
If the firm is at capacity and the special order is accepted, the
effect on operating income would be
a....

Harmony Company sells a product for $50 per unit. Variable costs
per unit are $30, and monthly fixed costs are $ 150,000.
C. Assume they achieve the level of sales required in part
what is the margin of safety in sales dollars?
Break Even Point in Units: 7500
Level of sales from part b: $12500

NYC Inc. sells its product for $30 per unit and variable costs
are $16 per unit. Its fixed costs are $122,400. Calculate the
required sales in units to achieve its target operating income of
11% of total costs. (Round answer to 0 decimal places, e.g.
125.)
(it is very important that this is correct)
thank you!

Wardley Corporation sells its product for $40. The variable
costs are $18 per unit. Fixed costs are $16,000. The company is
considering the purchase of an automated machine that will result
in a $2 reduction in unit variable costs and an increase of $5,000
in fixed costs. Which of the following is true about the break-even
point in units?
It will increase.
It cannot be determined from the information provided.
It will remain unchanged....

Emeka Company has provided the following information:
Sales price per unit
$42
Variable cost per unit
16
Fixed costs per month
$18,000
Calculate the contribution margin per unit.
A.$58
B. $42
C. $16
D.$26
Tentacle Television Antenna Company provided the following
manufacturing costs for the month of June.
Direct labor cost
$132,000
Direct materials cost
84,000
Equipment depreciation
(straight−line)
23,000
Factory insurance
11,000
Factory manager's salary
11,200
Janitor's salary
5,000
Packaging costs
19,000
Property taxes
16,000
From the above information,...

A
product sells for $170 per unit, and its variable costs per unit
are $100. The fixed costs are $540,000. If the firm wants to earn
$40,000 after tax income (assume a 15% tax rate), how many units
must be sold? After, prove the amount of units by plugging it back
in to find the $40,000 (pre and post 15% tax rate).

Lights Manufacturing produces a single product that sells
for
$ 150$150.
Variable costs per unit equal
$ 50$50.
The company expects total fixed costs to be
$ 80 comma 000$80,000
for the next month at the projected sales level of
1 comma 0001,000
units. What is the current breakeven point in terms of number
of units?

BM Company sells two products, X and Y. Product X sells for $20 per
unit with variable costs of $11 per unit. Product Y sells for $30
per unit with variable costs of $16 per unit. During this period,
BM sold 16,000 units of X and 4,000 units of Y, making Total
Revenue of $440,000, and after subtracting variable cost got Total
Contribution Margin of $200,000, and after subtracting Total Fixed
Cost of $110,000, earned Operating Profit of $90,000. When...

1.
Wang Co. manufactures and sells a single product that sells for
$540 per unit; variable costs are $324 per unit. Annual fixed costs
are $836,000. Current sales volume is $4,290,000. Compute the
contribution margin per unit.
2.
A firm expects to sell 24,800 units of its product at $10.80 per
unit and to incur variable costs per unit of $5.80. Total fixed
costs are $68,000. The total contribution margin is:
3.
McCoy Brothers manufactures and sells two products, A...

A company sells Product X for $30 per unit. The Direct Material
Cost, Direct labor cost, and Variable MFO costs total $21 per unit.
Fixed costs to product the product are $135,000.
How many units of Product X must the company sell in order to
break even?
What is the contribution margin ratio for product X?
How many units of Product X must be sold in order for the
company to earn a $50,000 profit?
If the company was selling...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 7 minutes ago

asked 7 minutes ago

asked 8 minutes ago

asked 10 minutes ago

asked 10 minutes ago

asked 13 minutes ago

asked 17 minutes ago

asked 18 minutes ago

asked 19 minutes ago

asked 20 minutes ago

asked 20 minutes ago

asked 21 minutes ago