Question

Wardley Corporation sells its product for $40. The variable costs are $18 per unit. Fixed costs...

Wardley Corporation sells its product for $40. The variable costs are $18 per unit. Fixed costs are $16,000. The company is considering the purchase of an automated machine that will result in a $2 reduction in unit variable costs and an increase of $5,000 in fixed costs. Which of the following is true about the break-even point in units?

       
It will increase.

       
It cannot be determined from the information provided.

       
It will remain unchanged.

       
It will decrease.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

In case of any Issues or doubts, please comment below

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
If fixed costs increased and variable costs per unit decreased, the break-even point would a. decrease...
If fixed costs increased and variable costs per unit decreased, the break-even point would a. decrease b. increase c. remain the same d. cannot be determined from the data provided
4.Kent Manufacturing produces a product that sells for $60.00. Fixed costs are $198,000 and variable costs...
4.Kent Manufacturing produces a product that sells for $60.00. Fixed costs are $198,000 and variable costs are $24.00 per unit. Kent can buy a new production machine that will increase fixed costs by $11,880 per year, but will decrease variable costs by $3.60 per unit. Compute the revised break-even point in dollars with the purchase of the new machine. $330,000. $300,000. $349,800. $264,000.
A product sells for $30 per unit and has a variable costs of $17.75 per unit....
A product sells for $30 per unit and has a variable costs of $17.75 per unit. The fixed costs are $967,750. If the variable cost per unit or to decrease to $15.50 per unit, fixed costs increase to $1,145,500, and the selling price does not change, break even point in units would: A) equal 6000 B) Decrease by 25,742 C) Not change D) Increase by 25,742 E) increase by 5925
Capital One produces a single product, which it sells for $8.00 per unit. Variable costs per...
Capital One produces a single product, which it sells for $8.00 per unit. Variable costs per unit equal $3.20. The company expects short-term fixed costs to be $7,200 for the coming month, at the projected sales level of 20,000 units. Management is considering several alternative actions designed to improve operating results. In conjunction with this, they have created a profit-planning (that is, a CVP) model, which can be used to evaluate different scenarios. Capital One's management believes that a 10%...
Harmony sells a product for $50 per unit. Variable costs per unit are $18, and monthly...
Harmony sells a product for $50 per unit. Variable costs per unit are $18, and monthly fixed costs are $252,800. a. What is the break-even point in units? b. What unit sales would be required to earn a target profit of $198,400? c. Assume they achieve the level of sales required in part b, what is the degree of operating leverage? (Round your answer to 2 decimal place.) d. If sales increase by 40% from that level, by what percentage...
A company increased the selling price for its product from $1.00 to $1.10 a unit when...
A company increased the selling price for its product from $1.00 to $1.10 a unit when total fixed expenses increased from $400,000 to $480,000 and the variable expense per unit remained unchanged at $0.50. How would these changes affect the break-even point in units? The break-even point in units would increase. The break-even point in units would decrease. The break-even point in units would remain unchanged. The effect cannot be determined from the information given.
A firm sells its product for $40 per unit. Its direct material costs are $7 per...
A firm sells its product for $40 per unit. Its direct material costs are $7 per unit and direct labour costs are $3. Fixed manufacturing overhead costs are $68,750 and variable overhead costs are $8 per unit. Calculate the required sales in dollars to break even.
UX Corporation sells a single product for $40. Its management estimates the following revenues and costs...
UX Corporation sells a single product for $40. Its management estimates the following revenues and costs for the year 2020: Net sales $388,000 Selling expenses—variable $21,100 Direct materials 85,400 Selling expenses—fixed 20,100 Direct labour 56,400 Administrative expenses—variable 9,400 Manufacturing overhead—variable 21,700 Administrative expenses—fixed 9,800 Manufacturing overhead—fixed 9,700 a)Assuming fixed costs and net sales are spread evenly throughout the year, determine YUX’s monthly break-even point in units and dollars b) Calculate the contribution margin ratio, the annual margin of safety ratio,...
Howard Company sells its product for $40. The variable costs are $24. The fixed costs are...
Howard Company sells its product for $40. The variable costs are $24. The fixed costs are $80,000. What is the contribution margin? What is the break even in units? What is the break even in sales dollars? What is the break even in units if they want $160,000 in profits? A. 15000 B. $200,000 C. $24 D. 16 E. 5000 F. 3333 G. 10000
A company sells calculators for $117. Variable costs associated with this product are $40 per unit...
A company sells calculators for $117. Variable costs associated with this product are $40 per unit and fixed costs associated with this product are $59,000. Total sales in the year just ended were 3,000 units. What is the break-even point? Select one: a. 766 units b. 1475 units c. 1266 units d. 504 units
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT