Question

The breakeven point for a company is $50,000. If fixed costs increase by $4,000, then the...

The breakeven point for a company is $50,000. If fixed costs increase by $4,000, then the breakeven point for the company goes up to $60,000. Compute the total fixed costs for the company BEFORE the increase occurs.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The answer has been preesented in the supporting sheet. For detaield answer refer to the supporting sheet.

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
Which of the following is true about the breakeven point in units? Multiple Choice A decrease...
Which of the following is true about the breakeven point in units? Multiple Choice A decrease in fixed costs will increase the breakeven point; an increase in variable costs per unit will increase the breakeven point. A decrease in fixed costs will increase the breakeven point; an increase in variable costs per unit will decrease the breakeven point. A decrease in fixed costs will decrease the breakeven point; an increase in variable costs per unit will decrease the breakeven point....
The breakeven point on a CVP graph is the intersection of the fixed expense line and...
The breakeven point on a CVP graph is the intersection of the fixed expense line and the total expense line. the intersection of the fixed expense line and the sales revenue. the intersection of the sales revenue line and the total expense line. the intersection of the sales revenue line and the​ y-axis. Total contribution margin less total fixed expenses equals sales revenue. gross profit. operating income. contribution margin ratio. If the sales price of a product increases while everything...
Assume a company has fixed costs of $100,000, sells one product at $12 per unit, and...
Assume a company has fixed costs of $100,000, sells one product at $12 per unit, and has Variable Costs of $10 per unit. Compute the break even point in units and sales dollars. Now assume that the company spends money on automation equipment that raises its fixed costs by $50,000, but lowers its variable costs per unit to $8 per unit. Re-compute the breakeven point in units and sales dollars.
XMobile Company sells car batteries to service stations for an average of $85 each. The variable...
XMobile Company sells car batteries to service stations for an average of $85 each. The variable cost of each battery is $48 and monthly fixed selling costs total $6,000. Other monthly fixed costs of the company total $7,000. Required: a. What is the breakeven point in batteries? b. What is the margin of safety, assuming sales total $32,000? c. What is the breakeven level in batteries, assuming variable costs increase by 20%? d. What is the breakeven level in batteries,...
Which of the following will lower the breakeven point? Group of answer choices a decrease in...
Which of the following will lower the breakeven point? Group of answer choices a decrease in the sales price per unit an increase in total fixed costs an increase in the variable cost per unit an increase in the sales price per unit
Number 2: Explain the answers to the following: (a) An increase in fixed costs and a...
Number 2: Explain the answers to the following: (a) An increase in fixed costs and a decrease in variable costs will increase the breakeven point and increase the profit of a business. Why is this true? (b) A decrease in the interest rate in the market will incre4ase the market price of a bond. Why?
Calculate the breakeven point and contribution margin. Breakeven point Fixed cost Contribution margin Selling price per...
Calculate the breakeven point and contribution margin. Breakeven point Fixed cost Contribution margin Selling price per unit Variable cost per unit units $88,400 $ $9 $5
ABC company sold 4,000 units, had fixed cost of $500,000 and an operating income of $80,000....
ABC company sold 4,000 units, had fixed cost of $500,000 and an operating income of $80,000. Determine (1) Breakeven point in sales dollars (2) Contribution margin and contribution margin ratio is 60% (3) Selling price per unit and variable cost per unit. (4) What is the margin of safety. If the fixed cost was $300,000, what would have been the contribution margin at breakeven point.
NRG Ltd has a current breakeven point of 43,000 units. Which of the following would result...
NRG Ltd has a current breakeven point of 43,000 units. Which of the following would result in a decrease to the breakeven point? a. a decrease in the variable costs per unit b. an increase in the contribution margin per unit c. a decrease in the selling price per unit d. an increase in the fixed costs
A company's break-even point will not be increased by: a) an increase in total fixed costs....
A company's break-even point will not be increased by: a) an increase in total fixed costs. b) a decrease in the selling price per unit. c) an increase in the variable cost per unit. d) an increase in the number of units produced and sold.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT