Question

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 point as before the increase in fixed costs?

Answer #1

Steven Company has fixed costs of $289,518. The unit selling
price, variable cost per unit, and contribution margin per unit for
the company's two products are provided below.
Product
Selling Price per Unit
Variable Cost per Unit
Contribution Margin per Unit
X
$848
$318
$530
Y
645
345
300
The sales mix for Products X and Y is 60% and 40%, respectively.
Determine the break-even point in units of X and Y. Round
answers to the nearest whole number.
units...

Heyden Company has fixed costs of $705,600. The unit selling
price, variable cost per unit, and contribution margin per unit for
the company's two products follow:
Product
Selling Price
Variable Cost per Unit
Contribution Margin per Unit
QQ
$700
$460
$240
ZZ
380
260
120
The sales mix for Products QQ and ZZ is 20% and 80%,
respectively. Determine the break-even point in units of QQ and ZZ.
If required, round your answers to the nearest whole number.
a. Product...

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...

1) Bears Company sells a product for $15 per unit. The
variable cost is $10 per unit and fixed costs are $1,750,000.
Determine:
The Break-Even point in sales units
The Break-Even point if selling price were increased to
$655 per unit
2) Bear Company sells a product for $15 per unit. The
Variable cost is $10 per unit and fixed costs are $1,750,000.
Determine:
The Break-Even Point in sales units
The Sales units required for the company to achieve a...

Steven Company has fixed costs of $186,032. The unit selling
price, variable cost per unit, and contribution margin per unit for
the company's two products are provided below. Product Selling
Price per Unit Variable Cost per Unit Contribution Margin per Unit
X $1,344 $504 $840 Y 538 288 250 The sales mix for Products X and Y
is 60% and 40%, respectively. Determine the break-even point in
units of X and Y. Round answers to the nearest whole number. units...

Steven Company has fixed costs of $430,652. The unit selling
price, variable cost per unit, and contribution margin per unit for
the company's two products are provided below.
Product
Selling Price per Unit
Variable Cost per Unit
Contribution Margin per Unit
X
$1,280
$480
$800
Y
667
357
310
The sales mix for Products X and Y is 60% and 40%, respectively.
Determine the break-even point in units of X and Y. Round
answers to the nearest whole number.
units...

Steven Company has
fixed costs of $195,168. The unit selling price, variable cost per
unit, and contribution margin per unit for the company's two
products are provided below.
Product
Selling Price per Unit
Variable Cost per Unit
Contribution Margin per Unit
X
$1,408
$528
$880
Y
430
230
200
The sales mix for
Products X and Y is 60% and 40%, respectively. Determine the
break-even point in units of X and Y. Round answers to the
nearest whole number.
units...

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.

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...

eyden Company has fixed costs of $350,900. The unit selling
price, variable cost per unit, and contribution margin per unit for
the company’s two products follow:
Product Model
Selling Price
Variable Cost per Unit
Contribution Margin per Unit
Yankee
$100
$60
$40
Zoro
140
80
60
The sales mix for products Yankee and Zoro is 10% and 90%,
respectively. Determine the break-even point in units of Yankee and
Zoro.
a. Product Model Yankee fill in the blank 1
units
b....

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