Question

(Break-even point and selling price) Simple Metal Works, Inc. will manufacture and sell 240 comma 000 units next year. Fixed costs will total $280 comma 000 , and variable costs will be 30 percent of sales. a. The firm wants to achieve a level of earnings before interest and taxes of $260 comma 000 . What selling price per unit is necessary to achieve this result? b. Set up an analytical income statement to verify your solution to part (a).

Answer #1

Parks castings inc., will manufacture and sell 200,000 units
next year. Fixed costs will total $300,000, and variable costs will
be 60 present of sales. The finn wants to achieve an earnings
before interest and taxes level of $250,000. What selling price per
unit is necessary to achieve this result?

(Break-even point and operating leverage) Rockstar, Inc.
manufactures a complete line of men's and women's casual shoes
for independent merchants. The average selling price of its
finished product is $90 per pair. The variable cost for this same
pair of shoes is $55. Footwear Inc. incurs fixed costs of $180
comma 000 per year.
a. What is the break-even point in pairs of shoes sold for the
company?
b. What is the dollar sales volume the firm must achieve to...

Question 1
Calculate the
break-even point in dollars from the following information. Selling
price per unit is $50, variable costs per unit are $30 and fixed
costs for the year are $25 000
a.
$1 250
b.
Unable to be
determined from the information given
c.
$83 333
d.
$41 667
e.
$62 500
1 points
Question 2
If McLeod Ltd’s
selling price is $50 per unit, fixed costs are $499 800, and the
contribution margin ratio is 0.34. The...

Sales Mix and Break-Even Analysis
Heyden Company has fixed costs of $1,263,850. 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
Variable Cost per Unit
Contribution Margin per Unit
Model 94
$440
$180
$260
Model 81
320
280
40
The sales mix for products Model 94 and Model 81 is 55% and 45%,
respectively. Determine the break-even point in units of Model 94
and Model...

Break-even
point and operating
leverage)
Footwear Inc. manufactures a complete line of men's and
women's dress shoes for independent merchants. The average selling
price of its finished product is
$80
per pair. The variable cost for this same pair of shoes is
$50
Footwear Inc. incurs fixed costs of
$180,000
per year.
a. What is the break-even point in pairs of
shoes sold for the company?
b. What is the dollar sales volume the firm
must achieve to reach the...

(Break-even point and operating leverage) Rockstar, Inc.
manufactures a complete line of men's and women's casual shoes
for independent merchants. The average selling price of its
finished product is $90 per pair. The variable cost for this same
pair of shoes is $45. Footwear Inc. incurs fixed costs of
$160,000 per year.
a. What is the break-even point in pairs of shoes sold for the
company?
b. What is the dollar sales volume the firm must achieve to
reach the...

You plan to
start a business selling premium kitchen cabinets you will
manufacture in a small shop in your back yard. You estimate that
you have fixed
costs associated with these
activities of $500 per month. You estimate the cost of lumber and
other wood for each set of cabinets to be $1350. Supplies
including clasps, hinges,
nails, and screws cost $75 per set of cabinets. You pay a local
teenager $12.00 / hr to do sanding and staining of...

We constantly seem to be pricing ourselves out of some
markets and not charging enough in others. Our pricing policy is
pretty simple: we mark up our full manufacturing cost by 50%. That
means a computer that costs us $2,000 to manufacture will sell for
$3,000. Until now I thought this was a workable approach, but now
I’m not so sure.
Steve Works, CEO, Cortland Manufacturing, Inc.
(CMI)
Steve’s Controller, Sally Nomer, had just told him that she
believed the...

Read the following case carefully and then answer the
questions.
In the movie Face/Off, John Travolta got a new look by
exchanging faces with Nicolas Cage. Unfortunately, he got a lot of
trouble along with it. John could receive a much less troublesome
new look by using Botox, a treatment discovered by Vancouver’s Dr.
Jean Carruthers, who came upon the cosmetic potential of Botox in
1982 while treating a woman with eye spasms.
Botox is marketed by Allergan, a specialty...

Please read the article and answear about
questions.
Determining the Value of the Business
After you have completed a thorough and exacting investigation,
you need to analyze all the infor- mation you have gathered. This
is the time to consult with your business, financial, and legal
advis- ers to arrive at an estimate of the value of the business.
Outside advisers are impartial and are more likely to see the bad
things about the business than are you. You should...

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