Question

**HW 1 BEP Problem 1 Fixed Time Period IENG 301 Spring
2018**

Fixed costs = $ 8,000

Variable cost = $10/unit

Semivariable cost = $5/unit + $900

Required Return = $1,500

Tax rate = .40

Revenue = $20/unit

**Time = 100 hours**

Total Production = 2,000 units

Find the following four break-even points in number of units:

*Shutdown
point:*

*Break-even at costs:*

*Break-even at required return:*

*Break-even at required return after taxes:*

Find the net profit after taxes for production level of 2,000 units and 100 hours in dollars:

Answer #1

HW 1 BEP Problem 2 Fixed Production Level
Fixed costs = $ 30/hr
Variable cost = $16/hr +2,500
Semivariable cost = $14/hour + $500
Required Return = $3,000
Tax rate = .40
Revenue = $15/unit
Production Units = 1,000 units
Time period = 200 hours
Find the following four break-even points in number of
hours:
Shutdown
point:
Break-even at costs:
Break-even at required return:
Break-even at required return after taxes:
Find the profit for time period of 100 hours...

1. Based on predicted production of 25,900 units, a company
anticipates $400,000 of fixed costs and $492,100 of variable costs.
If the company actually produces 19,800 units, what are the
flexible budget amounts of fixed and variable costs?
------Flexible Budget------
------Flexible Budget at ------
Variable Amount per Unit
Total Fixed Cost
25,900 units
19,800 units
Total budgeted costs
2. SBD Phone Company sells its waterproof phone case for $90 per
unit. Fixed costs total $194,400, and variable costs are $36...

If the variable cost % is .60 , find the contribution margin
%
Fixed costs= 400 , contribution margin % is .40.
Find sales dollars needed to break even.
Fixed costs= 500 , contribution margin per unit =10. Find sales
in units to earn a net income of 100.
Selling price per unit= 80 ; variable costs per unit= 60; fixed
costs= 200.
Find the contrib.
margin %.

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...

The C&D TV store currently has
fixed costs of $6,000 per month and $400 per TV set. Their sales
price for the TV sets is $700 each, and their current volume is 25
sets per month.
a) Find C&D’s break-even point and their NOI and DOL at the
current level of sales (20 units per month, NOI=$1,500, and
DOL=5).
b) Find C&D’s break-even point and their NOI and DOL if fixed
costs decrease to $4,750 and at the...

Calculate Break Even when a given profit is required
1. Fixed Costs a. Fixed Factory Overhead = $1,000,000 b. Fixed
Selling overhead = $500,000
2. Variable Costs
a. Variable Manufacturing costs = $1000
b. Variable selling cost per unit = $500
3. Cost Per Unit = $10,000
4. Profit of $250,000 is required ii.
Calculate the CM iii.
Calculate the CM %
Calculate Break Even Point

Consider a project with the following data: accounting
break-even quantity = 24,240 units; cash break-even quantity =
16,000 units; life = three years; fixed costs = $160,000; variable
costs = $60 per unit; required return = 15 percent. Ignoring the
effect of taxes, find the financial break-even quantity.

Sunland Corp. had total variable costs of $193,800, total fixed
costs of $133,300, and total revenues of $340,000.
Compute the required sales in dollars to break even.
Required sales
$
Amanda Company reports the following total costs at two levels
of production.
Classify each cost as variable, fixed, or mixed.
5,000 Units
10,000 Units
Indirect labor
$ 3,000
$ 6,000
Fixed CostsMixed CostsVariable Costs
Property taxes
7,000
7,000
Fixed CostsMixed CostsVariable Costs
Direct labor
28,000
56,000
Fixed CostsMixed CostsVariable Costs...

Problem 1
The fixed cost of a company is $30,000 p.a. prime cost is $6 per
unit.Variable Overheads are $4 per unit.Selling price is $20 per
unit. Present sales are 20,000 units a year.Calculate the
break-even point in sales and units.
Problem 2
Calculate the break-even point from the following
particulars:
Budgeted output80,000 units
Fixed Expenses$45,000.
Variable Cot Unit$15.00
Selling Cost per unit$25.00
If the selling price is reduce to $20 per unit, what will be the
new break-even point?...

Consider a project with the following data:
Accounting break-even quantity =
13,800 units;
Cash break-even quantity = 10,500
units;
Life = 5 years;
Fixed costs = $125,000;
Variable costs = $32 per unit;
Required return = 14 percent.
Ignoring the effect of taxes, find the financial break-even
quantity. (HINT: Use the appropriate break even
formulas to identify the unknown variables in the financial
breakeven calculation).

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