Question

RUSH

The unit selling price of a product is $150, the unit variable cost is $90, and the total fixed costs are $50,000. Break-even sales (in units) are

334

556

834

209

Answer #1

Correct answer is 834 units.

We know that

Break even Sales (in units) = Fixed cost / Contribution per
unit

Fixed Cost= $ 50,000

Contribution per unit = Selling price per unit - Variable cost
per unit

= $ 150 - $ 90

= $ 60

Break even sales (in units) = $ 50,000 / $60 = $ **834
units.**

Note: Break even sales in units is that level of sales at which
there is not profit no loss. After break even point the firms
realizes profits and before break even point firm incurs loses.

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...

Break-Even Sales Currently, the unit selling price of a product
is $320, the unit variable cost is $260, and the total fixed costs
are $918,000. A proposal is being evaluated to increase the unit
selling price to $350.
a. Compute the current break-even sales (units). units
b. Compute the anticipated break-even sales (units), assuming
that the unit selling price is increased and all costs remain
constant. units

Break-Even Sales
Currently, the unit selling price of a product is $320, the unit
variable cost is $260, and the total fixed costs are $810,000. A
proposal is being evaluated to increase the unit selling price to
$350.
a. Compute the current break-even sales
(units).
units
b. Compute the anticipated break-even sales
(units), assuming that the unit selling price is increased and all
costs remain constant.
units

Break-Even Sales
Currently, the unit selling price of a product is $230, the unit
variable cost is $190, and the total fixed costs are $448,000. A
proposal is being evaluated to increase the unit selling price to
$260.
a. Compute the current break-even sales
(units).
units
b. Compute the anticipated break-even sales
(units), assuming that the unit selling price is increased to the
proposed $260, and all costs remain constant.
units

Break-Even Sales
Currently, the unit selling price of a product is $230, the unit
variable cost is $190, and the total fixed costs are $420,000. A
proposal is being evaluated to increase the unit selling price to
$260.
a. Compute the current break-even sales
(units).
units
b. Compute the anticipated break-even sales
(units), assuming that the unit selling price is increased to the
proposed $260, and all costs remain constant.
units

Scrushy Company sells a product for $150 per unit. The variable
cost is $110 per unit, and fixed costs are $200,000.
Determine (a) the break-even point in sales units and (b) the
break-even point in sales units if the company desires a target
profit of $50,000.
a. Break-even point in sales units
b. Break-even point in sales units if the
company desires a target profit of $50,000

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,...

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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Determine the following: Round answers to the nearest whole
number.
a. Break-even point in sales units
units
b. Break-even points in sales units if the
company desires a target profit of $36,000
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Determine (a) the break-even point in sales units and (b) the
break-even point if the selling price were increased to $111 per
unit.
a. Break-even point in sales units
units
b. Break-even point if the selling price were
increased to $111 per unit
units

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