Question

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 double profit, if the current number of units sold is 200?**

Answer #1

James Motors sells a single product with a selling price of $400
with variable costs per unit of $160. The company’s monthly fixed
expenses are $36,000.
What is the company’s break-even point in units?
What is the company’s break-even point in dollars?
How many units will James need to sell in order to realize a
target profit of $48,000?
What dollar sales will James need to generate in order to
realize a target profit of $48,000?

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?

Total fixed cost = $66,000
Selling price per unit = $14
Variable costs per unit = $6
Net target income (after tax) = $52,000
Tax rate = 35%.
a)Calculate break even point in units
b) calculate the sales revenue (in dollars) required to achieve
the target income
c) calculate the difference in operating income when one extra
unit is sold
d) if fixed cost increased by 20%, what is the new unit
contribution margin required to maintain the same break-even...

In year 1 Frodo Company has variable costs of $80 per
unit, total fixed costs of $200,000, and a break-even point of
5,000 units. If the company raises the sales price per unit by $10
the following year, how many units must Frodo Company sell to break
even in Year 2?
A.
3,000 units
B.
4,000 units
C.
6,000 units
D.
5,000 units

Assume a fixed cost of $3,500, a variable cost of $7.25, and a
selling price of 12.25.
What is the break-even point?
How many units must be sold to make a profit of $500,000?
How many units must be sold to average $0.75 profit per unit?
$1.25 profit per unit? And $1.75 per unit?

Selling price per unit
$55
Variable manufacturing costs
$23
Annual fixed manufacturing costs
$450000
Variable, marketing, distribution and administration
costs
$9
Annual fixed non-manufacturing costs
$229000
Annual volume
50000
a. Calculate the contribution margin per
unit.
b. Calculate the contribution margin ratio.
c. Calculate the break-even in units and sales dollars
for 2016.
d.Calculate the profit earned in 2016.

Brummel
Corporation manufactures a single product. The
selling price is $120 per unit, and variable costs amount to $84
per unit. The fixed costs are $42,000 per month (round any units to
the next highest full unit).
Calculate: (show your calculations and round to 2 decimal
places)
What is the contribution margin per unit?
What is the contribution margin ratio per unit?
What is the monthly sales volume (in dollars) at the break-even
point?
How many units must be sold...

A company faces fixed costs of $100,000 and variable
costs of $8 per unit. It plans to directly sell its product in the
market for $12. How many units must it produce and sell to break
even? Show your math.

Metal Industries has monthly fixed costs totaling $90,000 and
variable costs of $5 per unit. Each unit of product is sold for
$20.
Assume the company expects to sell 11,850 units of product this
coming month. What is the margin of safety in units?
Group of answer choices
8,850
6,600
5,850
7,350
Tech Products, Inc. has monthly fixed costs totaling $90,000 and
variable costs of $5 per unit. Each unit of product is sold for
$20.
How many units must...

Prepare an economic report with the following production data: Fixed costs: $ 7,000 per day and $ 50 of variable costs. The sale price per unit is $ 70.00; for the production of # 500 perfumes:
a) Break-even point (equilibrium production) in quantity (Q).
b) Determine the variable cost per unit to have a profit of $ 20,000
c) What is the profit per unit ?; if you reduce fixed costs to $ 5,000.

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