Question

Beckham Company has the following information available:

Selling price per unit £100

Variable cost per unit £55

Fixed costs per year £400,000

Expected sales per year 20,000 units

What is the expected operating income (i.e. profit ) for a year?

Select one:

A. £500,000

B. £680,000

C. £700,000

D. £480,000

Johnson Company produces dolls. Each doll sells for £20.00. Variable costs per unit are £14.00 and total fixed costs for the period are £300,000. What is the break-even in sterling pounds?

Select one:

A. £1,000,000

B. £50,000

C. £1,450,000

D. £621,429

Jensen Company produces dolls. Each doll sells for £20.00. Variable costs are £14.00 per unit. If the break-even in sterling pound 1,446,000, then the total fixed costs for the period are ________.

Select one:

A. £433,800

B. £1,446,000

C. £516,425

D. £361,500

Thanks.

Answer #1

1. Operating income = (unit sales price - unit variable cost) *sales - Fixed cost = (100-55)*20,000 units - 400,000 = 500,000 Option A |

2. Contribution margin ratio = (Sales price - Variable costs)/Sales price = (20-14)/20 = 30% Breakeven sales = Fixed cost/Contribution margin ratio = 300,000/30% = 1,000,000 Option A |

3. Contribution margin ratio = (20-14)/20 = 30% Breakeven sales = Fixed cost/Contribution margin ratio 1,446,000 = Fixed cost/30% Fixed cost = 1,446,000*30% = 433,800 Option A |

In 2017, X Company had the following selling price and per-unit
variable cost information:
Selling Price
165
Variable manufacuting costs
89
Variable selling and administrative costs
13
In 2017, total fixed costs were $679,000.
In 2018, there are only two expected changes. Direct material
costs are expected to increase by $8 per unit, and fixed selling
and administrative costs are expected to increase by $10,000. What
must unit sales be in order for X Company to break even in 2018

In 2017, X Company had the following selling price and
per-unit variable cost information:
Selling price $173
Variable manufacuting costs 81
Variable selling and administrative costs 24
In 2017, total fixed costs were $743,000.
In 2018, there are only two expected changes. Direct material
costs are expected to decrease by $5 per unit, and fixed selling
and administrative costs are expected to decrease by $15,000. What
must unit sales be in order for X Company to break even in
2018?

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...

10)
In 2017, X Company had the following selling price and per-unit
variable cost information:
Selling price
$188
Variable manufacuting costs
97
Variable selling and administrative costs
30
In 2017, total fixed costs were $632,000.
In 2018, there are only two expected changes. Direct material costs
are expected to decrease by $6 per unit, and fixed selling and
administrative costs are expected to increase by $20,000. What must
unit sales be in order for X Company to break even in...

1) Selling price per unit Is $60, variable cost per unit is $30
and fixed cost per unit is $20. When this company operates above
the break-even point, the sale of one more unit will increase net
incomes by $10
a) True
b) False
2) A company with sales of $100,000, the variable cost of
$70,000 and fixed cost of $50,000 will reach its break-even point
if sales are increased by $20,000
a) True
b) False

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...

The DeWayne Company sells binoculars
for $140 per unit. The variable cost is $100 per unit while the
fixed costs
are $1,200,000.
Compute:
The anticipated break-even sales (units) for binoculars.
The sales (units) for binoculars required to realize target
operating income of $400,000.
Determine the probable operating income (loss) if sales total
32,000 units.
If selling price goes up to $150 per unit while all costs
remain the same, what is the new break-even point?

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...

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unit P20, and fixed cost per unit is P3. When this company operates
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The DeWayne Company sells binoculars
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Compute:
The anticipated break-even sales (units) for binoculars.
The sales (units) for binoculars required to realize the target
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Determine the probable operating income (loss) if sales total
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