Question

The Kringel company provides the following information: Sales (200,000 units) $500,000 Manufacturing costs: Variable 170,000 Fixed 30,000 Selling and administrative costs: Variable 80,000 Fixed 20,000

Required:

a. What is the break-even point in units for Kringel?

b. What is the variable cost per unit for Kringel?

c. What is the contribution margin per unit for Kringel?

d. Should a multiple product firm focus on individual product break-even point? Why or why not? Discuss with logical arguments.

Answer #1

Howard Company sells its product for $40. The variable costs are
$24. The fixed costs are $80,000.
What is the contribution margin?
What is the break even in units?
What is the break even in sales dollars?
What is the break even in units if they want $160,000 in
profits?
A. 15000
B. $200,000
C. $24
D. 16
E. 5000
F. 3333
G. 10000

You have been provided with the following information regarding
the Omaha Manufacturing Company:
Sales price
$50
Variable manufacturing cost per
unit
24
Variable marketing cost per
unit
6
Fixed manufacturing costs
360,000
Fixed administrative costs
80,000
This information is based on forecasted sales of 30,000
units.
Required:
(a) What is the expected operating profit for the upcoming
year?
(b) What is the break-even point in units?
(c) If $180,000 of operating profit is desired, how many units must
be sold?

Given the following information:
Selling Price (per unit): $10,000
Variable Costs (per unit): $7,000
Fixed Costs: $200,000
Required
Each of these are separate situations:
What is the break-even point in total sales in
dollars?
How many units need to be sold to make a profit of
$20,000?
How many units need to be sold to make a profit of
$20,000 if fixed costs increase from $200,000 to
$250,000?
How many units would they need to sell if they wanted
to...

Rubber and Steel Company is planning to manufacture a new
product. The variable manufacturing costs will be
$ 67$67
per unit and the fixed costs are estimated to be
$ 7308.$7308.
The selling price of the product is to be
$ 129$129
per unit. Variable selling expense is expected to be
$ 20$20
per unit.
(a) Calculate the contribution margin per unit.
(b) Determine the contribution rate.
(c) Calculate the break-even point in units.
(d) Determine the break-even point in...

1. Based on predicted production of 25,900 units, a company
anticipates $400,000 of fixed costs and $492,100 of variable costs.
If the company actually produces 19,800 units, what are the
flexible budget amounts of fixed and variable costs?
------Flexible Budget------
------Flexible Budget at ------
Variable Amount per Unit
Total Fixed Cost
25,900 units
19,800 units
Total budgeted costs
2. SBD Phone Company sells its waterproof phone case for $90 per
unit. Fixed costs total $194,400, and variable costs are $36...

Lucent Manufacturing Company makes a product that it sells for
$67 per unit. The company incurs variable manufacturing costs of
$14 per unit. Variable selling expenses are $13 per unit, annual
fixed manufacturing costs are $186,000, and fixed selling and
administrative costs are $362,800 per year.
Contribution margin ratio
%
Break-even point in
dollars
Break-even point in units
LUCENT MANUFACTURING COMPANY
Contribution Margin Income Statement
Sales
Variable costs
Contribution margin
Fixed costs
Net income

Given the following information for Baugh Company:
Total fixed
costs
$78,000
Unit variable
costs
$24
Unit selling
price
$36
Required:
a. Compute the contribution margin per
unit.
b. Compute the contribution-margin ratio.
c. Compute the break-even point in units.
d.
Compute the break-even volume in dollars

Oak Cabinet Company has fixed costs of $265,000, sells its units
for $66, and has variable costs of $36 per unit.
a. Compute the break-even point.
b. The CFO comes up with a new plan to cut fixed costs to
$200,000. However, more labor will now be required, which will
increase variable costs per unit to $39. The sales price will
remain at $66. What is the new break-even point?
c. Under the new plan, what is likely to happen...

. Assume that the CDE Company has yearly Fixed costs of $30,000
and its Variable costs are $30,000, which are 60% of its Sales.
Calculate:
[Use ONLY formula for your calculations. Do NOT use
algebra]
Question:
Its profit or loss when its total sales are $110,000.
b. The sales level (dollars) required
to break-even.
c. The sales needed to make a profit of
$35,000.
2. ABC Company manufactures and distributes Product A. An
extract from the 20X5 statement...

Sales Mix and
Break-Even Analysis
Michael Company has
fixed costs of $500,240. The unit selling price, variable cost per
unit, and contribution margin per unit for the company's two
products follow:
Product
Selling Price
Variable Cost per Unit
Contribution Margin per Unit
QQ
$570
$330
$240
ZZ
310
240
70
The sales mix for
Products QQ and ZZ is 20% and 80%, respectively. Determine the
break-even point in units of QQ and ZZ. If required, round your
answers to the...

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