Question

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 Operating Profit of $50,000. When in breakeven, how many units of A and B would be sold?

Answer #1

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...

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...

(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. The...

1.
Wang Co. manufactures and sells a single product that sells for
$540 per unit; variable costs are $324 per unit. Annual fixed costs
are $836,000. Current sales volume is $4,290,000. Compute the
contribution margin per unit.
2.
A firm expects to sell 24,800 units of its product at $10.80 per
unit and to incur variable costs per unit of $5.80. Total fixed
costs are $68,000. The total contribution margin is:
3.
McCoy Brothers manufactures and sells two products, A...

Gannon Company sells a single product for $15 per unit. Variable
costs are $10 per unit and fixed costs are $180,000 at an operating
level of 16,000 to 30,000 units.
a. What is Gannon Company's break-even point in units?answer
b. How many units must be sold to earn $20,000 before income
tax? answer
c. How many units must be sold to earn $30,000 after income tax,
assuming a 40% tax rate? Answer

Excelsior Company has three salespersons. Average sales price
per unit sold, average variable manufacturing costs per unit, and
number of units sold for each salesperson are shown below.
Commissions are earned according to the following schedule:
Total Sales
Percentage
$0 to 49,999
6%
$50,000 to $52,999
7%
Over $53,000
8%
Salesperson
Mary Q.
John A.
Susan B.
Avg. selling price per unit
$50.00
$65.00
$45.00
Avg. var. mfg. costs per unit
25.00
30.00
35.00
Number of units sold
1,000
750...

Sequoah Company sells its product for $58 and has variable costs
of $30 per unit. The total fixed costs are $40,000. What will be
the effect on the breakeven point in units if variable costs
increase by $6 due to an increase in the cost of directâ€‹
materials?

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.

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 12 minutes ago

asked 16 minutes ago

asked 17 minutes ago

asked 20 minutes ago

asked 23 minutes ago

asked 30 minutes ago

asked 31 minutes ago

asked 37 minutes ago

asked 37 minutes ago

asked 37 minutes ago

asked 46 minutes ago

asked 56 minutes ago