Question

Howard Company sells its product for $40. The variable costs are $24. The fixed costs are...

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

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1) Contribution margin = Selling price - Variable cost per unit = $40 - $24 = $16

2) Break even in units = Fixed costs / Contribution margin = $80,000 / $16 = 5,000 units

3) Contribution margin ratio = $16 / $40 = 0.40 or 40%

Break even in sales dollars = Fixed costs / Contribution margin ratio = $80,000 / 0.40 = $200,000

4) Break even in units if they want $160,000 in profits = (Fixed costs + Desired profit) / Contribution margin = ($80,000 + $160,000) / $16 = 15,000 units

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
Blanchard Company manufactures a single product that sells for $100 per unit and whose total variable...
Blanchard Company manufactures a single product that sells for $100 per unit and whose total variable costs are $76 per unit. The company’s annual fixed costs are $338,400. (1) Prepare a contribution margin income statement for Blanchard Company at the break-even point. BLANCHARD COMPANY Contribution Margin Income Statement (at Break-Even) Amount Percentage of sales % Sales Variable costs Contribution margin Fixed costs $ (2) Assume the company’s fixed costs increase by $126,000. What amount of sales (in dollars) is needed...
The Company makes and sells products with variable costs of $24 each. Jordan incurs annual fixed...
The Company makes and sells products with variable costs of $24 each. Jordan incurs annual fixed costs of $372,960. The current sales price is $96. Note: The requirements of this question are interdependent. For example, the $288,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements. A. Determine the determine the break-even point in units and dollars. Prepare an income statement using the contribution...
The Kringel company provides the following information: Sales (200,000 units) $500,000 Manufacturing costs: Variable 170,000 Fixed...
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.
Blanchard Company manufactures a single product that sells for $110 per unit and whose total variable...
Blanchard Company manufactures a single product that sells for $110 per unit and whose total variable costs are $88 per unit. The company’s annual fixed costs are $308,000. (1) Prepare a contribution margin income statement for Blanchard Company at the break-even point. BLANCHARD COMPANY Contribution Margin Income Statement (at Break-Even) Amount Percentage of sales Sales Variable costs Contribution margin Fixed costs Net income Sales Variable costs Contribution margin Fixed costs Net income % Sales Variable costs Contribution margin Fixed costs...
Wardley Corporation sells its product for $40. The variable costs are $18 per unit. Fixed costs...
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....
Blanchard Company manufactures a single product that sells for $240 per unit and whose total variable...
Blanchard Company manufactures a single product that sells for $240 per unit and whose total variable costs are $192 per unit. The company’s annual fixed costs are $734,400. (1) Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fixed costs at the break-even point. (2) Assume the company’s fixed costs increase by $138,000. What amount of sales (in dollars) is needed to break even? BLANCHARD COMPANY Contribution Margin Income Statement (at Break-Even) Amount Percentage of...
Narchie sells a single product for $40. Variable costs are 80% of the selling price, and...
Narchie sells a single product for $40. Variable costs are 80% of the selling price, and the company has fixed costs that amount to $176,000. Current sales total 18,000 units. 1. Narchie: a. will break-even by selling 15,333 units. b. will break-even by selling 10,000 units. c. cannot break-even because it loses money on every unit sold. d. will break-even by selling 1,002,000 units. e. will break-even by selling 22,000 units. 2. In order to produce a target profit of...
A company sells calculators for $117. Variable costs associated with this product are $40 per unit...
A company sells calculators for $117. Variable costs associated with this product are $40 per unit and fixed costs associated with this product are $59,000. Total sales in the year just ended were 3,000 units. What is the break-even point? Select one: a. 766 units b. 1475 units c. 1266 units d. 504 units
Lucent Manufacturing Company makes a product that it sells for $67 per unit. The company incurs...
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
1. DEF sells its shirts for $50 a piece. If fixed costs are $300,000 and variable...
1. DEF sells its shirts for $50 a piece. If fixed costs are $300,000 and variable costs are $20 per unit, what is break-even in units? 60000 15000 3750 10000 2. Which of the following products would probably be manufactured using a job order costing system? Company letterhead paper heating oil gasoline 3. Timy, inc. had $1,100,000 in invested assets, sales of $1,210,000, income from operations of $302,500 and minimum return of 15%. What is the residual income? $137,500 $190,300...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT