Question

Simspon buys and sells ladies’ handbags. The average selling price is $500 per bag. Average variable...

Simspon buys and sells ladies’ handbags. The average selling price is $500 per bag. Average variable costs (purchase price of bags plus freight costs and selling expenses) amounts to $210 per bag. Simspon’s fixed costs equal $1,728,000 per year.

Do not enter dollar signs or commas in the input boxes.
Round all answers up to the nearest whole unit.

Calculate the number of units needed to:

Break-even: Answer
Earn $251,000 income: Answer
Earn income equal to 27% of total sales: Answer

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Calculate the selling price per handbag and Calculate the breakeven point of handbags sold You have...
Calculate the selling price per handbag and Calculate the breakeven point of handbags sold You have the following information leather 2 meter per handbag Leather being imported at a cost of R 9, 200 per 150 m roll Labour Cutting and stitching of material Supervisory salary 3 hours per handbag R9,500 per month Labour rate is R75,00 per hour Import cost R1200 per load of 4 rolls of leather Delivery cost R1500 per load. A load consists of 16 bags...
Net Income Planning Nolden Company has charged a selling price of $20 per unit, incurred variable...
Net Income Planning Nolden Company has charged a selling price of $20 per unit, incurred variable costs of $14 per unit, and total fixed costs of $90,000. What unit sales volume is necessary to earn the following related amounts of net income before income tax? (a) $18,000; (b) $27,000; or (c) equal to 20% of sales revenue
Accents Associates sells only one product, with a current selling price of $70 per unit. Variable...
Accents Associates sells only one product, with a current selling price of $70 per unit. Variable costs are 40% of this selling price, and fixed costs are $12,000 per month. Management has decided to reduce the selling price to $65 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price. At the reduced selling price of $65 per unit, what dollar volume...
ABC Inc. manufactures and sells toys. Price and cost data are as follows: Selling price per...
ABC Inc. manufactures and sells toys. Price and cost data are as follows: Selling price per unit (package of 2 CDs)...................................... $30.00 Variable costs per unit: Direct material............................................................................................................... $5.00 Direct labor...................................................................................................................... $6.00 Artist's royalties.............................................................................................................. $5.50 Manufacturing overhead.......................................................................................... $4.00 Selling expenses............................................................................................................ $2.30 Total variable costs per unit............................................................ $22.80 Annual fixed costs: Manufacturing overhead.......................................................................................... $199,000 Selling and administrative....................................................................................... $376,000 Total fixed costs................................................................................ $575,000 Forecasted annual sales volume (120,000 units)......................... $3,600,000 How many units would ABC Inc. have to sell in order to...
Long Construction makes and sells tool cabinets. The current selling price is $400 per cabinit. Varible...
Long Construction makes and sells tool cabinets. The current selling price is $400 per cabinit. Varible costs are $300 per cabinet, and fixed expenses total $25,000 per year. Sales volume for 2016 was 450 cabinets. 1) Prepare a Contribution Margin Income Statement for Long Construction for 2016. 2) Calculate the break-even point in units. 3) How many cabinets would Lee Contruction need to sell to earn a target profit of $60,000?
Total fixed cost = $66,000 Selling price per unit = $14 Variable costs per unit =...
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...
Brummel Corporation manufactures a single product. The selling price is $120 per unit, and variable costs...
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...
Sormac Corporation manufactures and sells hand radios.  Price and cost data are as follows: Selling price per...
Sormac Corporation manufactures and sells hand radios.  Price and cost data are as follows: Selling price per unit $30.00 Variable cost per unit     Direct material $9.80     Direct labor $4.80     Manufacturing overhead $7.20     Selling expenses $1.90             Total Variable Cost per Unit $23.70 Annual fixed cost     Manufacturing overhead $96,800     Selling and administrative $42,400 Total Fixed Cost     $139,200 Forecasted annual sales volume (168,000 units) What is Sormac Corporation break-even point in units? What is the company’s break-even point in sales dollars? How many units...
James Motors sells a single product with a selling price of $400 with variable costs per...
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?
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,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT