Question

1) ABC Company sells two products. A and B. The weighted average per unit is $36 and fixed costs are $20,300. The sales mix is 55% for A and 45% for B. How many units of Product B must be sold by ABC Company to break-even?

2)

Using the high low method, ABC Company calculated the variable cost as $2.2 per unit. The high level of the activity was 2,300 units and $20,974 of total cost. Total fixed costs equal $_______ Enter your answer as a whole number. |

3)

ABC Company has a selling price of $39 variable costs of $10 per unit, and fixed costs of $28,110. ABC's net income is $37,340. How many units did ABC Company sell? |

Answer #1

Thankyou...............

ABC Company produces a single unit that it sells for $20 per unit. ABC has
the capacity to produce 28,000 units each month. ABC is currently selling
19,000 units each month. The costs associated with each unit appears below:
direct materials $5.00
direct labor 2.50
variable overhead 1.00
fixed overhead 1.50
variable selling costs 4.00
fixed selling costs 0.75
ABC Company has received a special order from a customer who wants to
purchase 18,000 units at a reduced price of...

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. The...

ABC Company sells three products with exactly the same price of
$20 a unit. However, A’s variable cost is at 40%, B’s at 50%, and
C’s at 60%. Sales mix for A, B, and C is at 500, 1500, and 3000
units respectively. Fixed costs amount to $18,000. Breakeven sales
for B should be a. 600 b. 1,200 c. 1,800 d. 2,000
ABC’s sales mix has drastically changed due to market conditions
to 3000, 1500, and 500 units for A,...

Dos Mfg Co. sells two products. Product A sells for $10 per unit
with variable costs of $6 per unit. Product B sells for $20 per
unit with variable costs of $12 per unit. Product A sells 75%,
while B sells 25% of the total units sold. Currently, with combined
sales of 20,000 units, the company made Total Revenue of $250,000,
after subtracting variable cost got Total Contribution Margin of
$100,000, and after subtracting Total Fixed Cost of $50,000, earned...

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. The...

(Ch6) 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....

(Ch6) 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....

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...

Break-Even Point and Target
Profit Measured in Units (Multiple Products). Hi-Tech
Incorporated produces two different products with the following
monthly data.
Cell
GPS
Total
Selling price per unit
$100
$400
Variable cost per unit
$ 40
$240
Expected unit sales
21,000
9,000
30,000
Sales mix
70 percent
30 percent
100 percent
Fixed costs
$1,800,000
Assume the sales mix remains the same
at all levels of sales.
Required:
Calculate the weighted average contribution margin per unit.
How many units in total must...

Halifax Products sells a product for $108. Variable costs per
unit are $55, and monthly fixed costs are $111,300.
a. What is the break-even point in
units?
b. How many units would need to be sold to earn a
target profit of $206,700?
c. Assuming they achieve the level of sales
required in part b, what is the margin of safety in sales
dollars?

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