Question

Parks castings inc., will manufacture and sell 200,000 units next year. Fixed costs will total $300,000,...

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?

Homework Answers

Answer #1

Detailed answer is provided in the hand written notes below.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
​(​Break-even point and selling price​) Simple Metal​ Works, Inc. will manufacture and sell 240 comma 000...
​(​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​).
At a volume of 200,000 units, carson co. incurred total fixed costs of $400,000 and total...
At a volume of 200,000 units, carson co. incurred total fixed costs of $400,000 and total variable costs of $100,000. Based on this information, what total cost would be incurred at a volume of 250,000 units? $625,000, $600,000, $500,000, or $525,000
Skaters, Inc. plans to sell 90,000 skateboards next quarter at a price of $36 per unit....
Skaters, Inc. plans to sell 90,000 skateboards next quarter at a price of $36 per unit. Production costs are $14.40 per unit. Selling and administrative expenses are: variable, $7.20 per unit; and fixed, $604,800 per quarter. What are the budgeted earnings for next quarter? (Do not consider federal income taxes.) Show the analysis in a table format. Write a one-paragraph interpretation of the information presented in the table.
For a product, manufacturing costs have been estimated at $ 300,000 in fixed costs per year...
For a product, manufacturing costs have been estimated at $ 300,000 in fixed costs per year and $ 5 per unit in variable costs. The sale price will be $ 7 / unit and the plant is presumed to have a capacity to produce 200,000 units per year. Determine what percent of the capacity the plant must operate to avoid losing or winning if we assume that each unit produced can be sold. a. 70% b. 75% c. 60% d....
Johnson, Inc. projects sales for next year will be 55,000 units if the sales price is...
Johnson, Inc. projects sales for next year will be 55,000 units if the sales price is $27.50. At this level, unit fixed costs will be $8.30 while total variable costs will be $693,000. The vice president of marketing advises management to reduce sales price to $26.00 and to undertake a national advertising campaign costing $12,000. What is the breakeven point for the company in terms of dollars and units before giving effect to the vice president's plan? What is the...
Farrow Co. expects to sell 300,000 units of its product in the next period with the...
Farrow Co. expects to sell 300,000 units of its product in the next period with the following results. Sales (300,000 units) $ 4,500,000 Costs and expenses Direct materials 600,000 Direct labor 1,200,000 Overhead 300,000 Selling expenses 450,000 Administrative expenses 771,000 Total costs and expenses 3,321,000 Net income $ 1,179,000 The company has an opportunity to sell 30,000 additional units at $13 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per unit...
PLEASE DO PROBLEM Farrow Co. expects to sell 300,000 units of its product in the next...
PLEASE DO PROBLEM Farrow Co. expects to sell 300,000 units of its product in the next period with the following results. Sales (300,000 units) $ 4,500,000 Costs and expenses Direct materials 600,000 Direct labor 1,200,000 Overhead 300,000 Selling expenses 450,000 Administrative expenses 771,000 Total costs and expenses 3,321,000 Net income $ 1,179,000 The company has an opportunity to sell 30,000 additional units at $13 per unit. The additional sales would not affect its current expected sales. Direct materials and labor...
Given the following information: Selling Price (per unit): $10,000 Variable Costs (per unit): $7,000 Fixed Costs:...
Given the following information: Selling Price (per unit): $10,000 Variable Costs (per unit): $7,000 Fixed Costs: $200,000 Required Each of these are separate situations: What is the break-even point in total sales in dollars? How many units need to be sold to make a profit of $20,000? How many units need to be sold to make a profit of $20,000 if fixed costs increase from $200,000 to $250,000? How many units would they need to sell if they wanted to...
company has variable costs of $34.50, total fixed costs of $21,700,000 and plans to sell its...
company has variable costs of $34.50, total fixed costs of $21,700,000 and plans to sell its product for $45.00. In 2018 it sold 2,400,000 units of product. Required: e) what is the operating leverage in 2018; f) the production manager wants to automate production and lower variable costs by $3 per unit and spend an additional $4,500,000 fixed costs per year- is this more profitable? g) The sales manager wants to drop prices by $2.50 per unit and spend an...
The company has annual fixed costs of $200,032. How many units must the company sell in...
The company has annual fixed costs of $200,032. How many units must the company sell in order to break even each year. a given product has the following variable costs per unit: a. direct materials $100 b. Direct labor $50 c. variable selling costs $10 d. variable administrative costs $2 The units sell for $200 each.