Question

Information for Pueblo Company follows:              Product A Product B   Sales revenue $ 40,000 $ 60,000...

Information for Pueblo Company follows:

            

Product A Product B
  Sales revenue $ 40,000 $ 60,000
  Less: Total variable cost $ 14,000 $ 24,000
    Contribution margin $ 26,000 $ 36,000

           

The total fixed costs are $35,000.

Determine target sales needed to earn a $25,000 target profit

Target Sales
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
Information for Pueblo Company follows: Product A Product B Sales Revenue $ 43,000 $ 77,000 Less:...
Information for Pueblo Company follows: Product A Product B Sales Revenue $ 43,000 $ 77,000 Less: Total Variable Cost $ 10,300 $ 32,900 Contribution Margin $ 32,700 $ 44,100 The total fixed costs are $37,000. Determine target sales needed to earn a $32,000 target profit. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Healthy Ltd has two product lines: Basic and Premium. Business costs have been divided roughly into...
Healthy Ltd has two product lines: Basic and Premium. Business costs have been divided roughly into their variable and fixed elements. The business is considering whether to drop one of the product lines. The following financial information about each of the product line has been provided: Basic line Premium line Total Sales revenue $100,000 $80,000 $180,000 Less Cost of goods sold ($20,000) ($32,000) ($52,000) Less Other variable costs ($10,000) ($12,000) ($22,000) Contribution Margin $70,000 $36,000 $106,000 Less Avoidable fixed costs...
Break-Even Point and Target Profit Measured in Sales Dollars (Single Product). Nellie Company has monthly fixed...
Break-Even Point and Target Profit Measured in Sales Dollars (Single Product). Nellie Company has monthly fixed costs totaling $100,000 and variable costs of $20 per unit. Each unit of product is sold for $25 (these data are the same as the previous exercise): Required: Calculate the contribution margin ratio. Find the break-even point in sales dollars. What amount of sales dollars is required to earn a monthly profit of $60,000?
O'?Neill's Products manufactures a single product.? Cost, sales, and production information for the company and its...
O'?Neill's Products manufactures a single product.? Cost, sales, and production information for the company and its single product is as? follows: -Selling price per unit is $53 -Variable manufacturing costs per unit manufactured (includes direct materials [DM], direct labor [DL], and variable MOH $27 -Variable operating expenses per unit sold $1 -Fixed manufacturing overhead (MOH) in total for the year $64,000 -Fixed operating expenses in total for the year $91000 -Units manufactured and sold for the year 8,000 units Requirement...
Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit Schylar Pharmaceuticals, Inc., plans to...
Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit Schylar Pharmaceuticals, Inc., plans to sell 140,000 units of antibiotic at an average price of $17 each in the coming year. Total variable costs equal $761,600. Total fixed costs equal $7,500,000. Required: 1. What is the contribution margin per unit? Round your answer to the nearest cent. $ What is the contribution margin ratio? Round your answer to two decimal places. (Express as a decimal-based answer rather than a...
- The margin of safety is: a) The difference between estimated sales and breakeven sales. b)...
- The margin of safety is: a) The difference between estimated sales and breakeven sales. b) Not a useful measure for management in understanding the risk associated with a product line. c) The amount sales can drop before the target profit is met. d) How far sales must increase to earn a profit. - Which of the following is the amount by which sales could drop before profits reach the breakeven point? a) Operating leverage b) Total contribution margin c)...
Polk Company developed the following information for its product: Per unit Sales price $90 Variable cost...
Polk Company developed the following information for its product: Per unit Sales price $90 Variable cost 63 Contribution margin $27 Total fixed costs $1,080,000 Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers. 1. How many units must be sold to break even? 2. What is the total sales that must be generated for the company to earn a profit of $60,000? 3. If the company is presently selling 45,000 units,...
Rush Company developed the following information for its product: Per Unit Sales price $90 Variable cost...
Rush Company developed the following information for its product: Per Unit Sales price $90 Variable cost $54 Contribution margin $36 Total fixed costs $1,080,000 Instructions: Answer the following independent questions and show computations using the contribution margin technique to support your answers. (Partial credit will be awarded if you show your work.) How many units must be sold to break even? What is the total sales that must be generated for the company to earn a profit of $60,000? If...
Question 10 Northern Star sells several products. Information of average revenue and costs is as follows:...
Question 10 Northern Star sells several products. Information of average revenue and costs is as follows:                 Selling price per unit                               $20.00                 Variable costs per unit:                         Direct material                                     $4.00                         Direct manufacturing labor             $1.60                         Manufacturing overhead                  $0.40                         Selling costs                                          $2.00                 Annual fixed costs                                 $96,000 The company sells 12,000 units at the end of the year.If direct labor and direct material costs increase by $1 each, contribution margin ________. increases by $20,000 increases by $14,000 decreases by $24,000 decreases by $14,000
Cost allocation Product A Product B Total sales volume (units) 360 200 560 Revenue $4,000 $24,000...
Cost allocation Product A Product B Total sales volume (units) 360 200 560 Revenue $4,000 $24,000 $28,000 Variable costs:   direct materials $800 $1,600 $2,400   direct labor $1,600 $4,000 $5,600 Contribution margin $1,600 $18,400 $20,000   Fixed costs $16,800 Profit $3,200 a) Allocate the fixed costs between products A and B. Use direct labor dollars as the cost driver. allocation rate=$  per ___________ DL$ allocated costs for A=$ __________ allocated costs for B=$ ___________ b) Compute the profit margins for products A and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT