Question

Required information A company that manufactures automatic blowdown control valves (for applications where boilers are operated...

Required information A company that manufactures automatic blowdown control valves (for applications where boilers are operated unsupervised for 24 to 36 hours) has fixed cost of $140,000 per year and variable cost of $675 per valve. The company expects to sell 15,000 valves per year. Determine the selling price in order for the company to break even. The selling price for the company to break even is determined to be $ per unit.?

Required information

You work for Bellevue Window Products. While performing an analysis for a new window product, you found a report from last year that provided the following information regarding the manufacture of a similar product: annual production rate = 40,000 units; selling price = $66 per unit; fixed production cost = $260,000 per year; variable production cost = $1,720,000 per year; and variable selling expenses = $89,000 per year.

As a first-cut, you decide to use this information to estimate the breakeven production rate per year.

The breakeven production rate per year is estimated to be  units per year. ?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
. DCK (Pty) Ltd produces a single product. You were given the following information regarding the...
. DCK (Pty) Ltd produces a single product. You were given the following information regarding the product: Pula (per unit) Selling price 60.00 Variable production costs 12.00 Variable selling cost 4.00 Fixed production cost 40.00 Fixed selling cost 8.00 Budgeted production is 10,000 units. Required: Determine the following: a. Breakeven point in units b. Number of units to be sold if the company wants to achieve a profit of P110,000. c. Breakeven point in Pula, if the variable production cost...
Haas Company manufactures and sells one product. The following information pertains to each of the company’s...
Haas Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $ 29 Direct labor $ 21 Variable manufacturing overhead $ 5 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 330,000 Fixed selling and administrative expenses $ 150,000 During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of...
Haas Company manufactures and sells one product. The following information pertains to each of the company’s...
Haas Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $ 27 Direct labor $ 14 Variable manufacturing overhead $ 6 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 510,000 Fixed selling and administrative expenses $ 210,000 During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of...
Required information [The following information applies to the questions displayed below.] Inner Secret T Shirt Company...
Required information [The following information applies to the questions displayed below.] Inner Secret T Shirt Company produces and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $ 28 Direct labor $ 17 Variable manufacturing overhead $ 3 Variable selling and administrative $ 4 Fixed costs per year: Fixed manufacturing overhead $ 500,000 Fixed selling and administrative expenses $ 130,000 During its first year of...
Required information [The following information applies to the questions displayed below.] O’Brien Company manufactures and sells...
Required information [The following information applies to the questions displayed below.] O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $ 28 Direct labor $ 17 Variable manufacturing overhead $ 3 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 510,000 Fixed selling and administrative expenses $ 170,000 During its first year of operations, O’Brien produced...
Waterways Continuing Problem 06 (Part 1) Waterways has a sales mix of sprinklers, valves, and controllers...
Waterways Continuing Problem 06 (Part 1) Waterways has a sales mix of sprinklers, valves, and controllers as follows. Annual expected sales: Sale of sprinklers 509,800 units at $27.00 Sale of valves 1,447,832 units at $11.00 Sale of controllers 81,568 units at $43.00 Variable manufacturing cost per unit: Sprinklers $14.00 Valves $8.00 Controllers $30.00 Fixed manufacturing overhead cost (total) $703,000 Variable selling and administrative expenses per unit: Sprinklers $1.00 Valves $1.00 Controllers $3.00 Fixed selling and administrative expenses (total) $1,720,496 Determine...
O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s...
O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $ 27 Direct labor $ 16 Variable manufacturing overhead $ 5 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 500,000 Fixed selling and administrative expenses $ 110,000 During its first year of operations, O’Brien produced 95,000 units and sold 76,000 units. During its second year of...
O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s...
O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $ 30 Direct labor $ 15 Variable manufacturing overhead $ 3 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 570,000 Fixed selling and administrative expenses $ 170,000 During its first year of operations, O’Brien produced 97,000 units and sold 72,000 units. During its second year of...
O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s...
O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $26 Direct labor $18 Variable manufacturing overhead $5 Variable selling and administrative $3 Fixed costs per year: Fixed manufacturing overhead $530,000 Fixed selling and administrative expenses $170,000 During its first year of operations, O’Brien produced 93,000 units and sold 77,000 units. During its second year of operations, it produced 78,000 units and...
1. Calculating Costs and Break-Even [LO3] Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials...
1. Calculating Costs and Break-Even [LO3] Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $11.13 per unit, and the variable labor cost is $7.29 per unit. What is the variable cost per unit? Suppose the company incurs fixed costs of $875,000 during a year in which total production is 190,000 units. What are the total costs for the year? If the selling price is $44.99 per unit, does the company break even on a cash basis?...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT