Question

A manufacturing process has a fixed cost of $250,000 per month. Each unit of product being produced contains $17 worth of material and $42 in labor. Each finished product will sell for $100.

- How many units must be sold each month to break even?
- What level of monthly revenue is necessary to break even?
- What is the expected profit for sales levels of 2,500, 7,500, and 10,000 units respectively?

Answer #1

A firm manufactures a product that sells for $12 per unit.
Variable cost per unit is $8 and fixed cost per month is $1200.
Capacity is 1000 units per month. a. How much is the contribution
margin? __________ b. How much is the contribution rate?
___________ c. How many units must they sell per month in order to
break even? _________ d. How many units must they sell in order to
have a profit of $2,500 per month? ___________

38.It costs Bodhis, Inc. $70 per unit to manufacture 1,000 units
per month of a product that it can sell for $100 each.
Alternatively, Bodhis could process the units further into a more
complex product, which would cost an additional $40 per unit.
Bodhis could sell the more complex product for $145 each. How would
processing the product futher affect Bodhis's profit?
.
42 Jasmine Company produces hand tools. A sales budget for the
next four months is as follows:...

Ferkil Corporation manufacturers a single product that has a
selling price of $40.00 per unit. Fixed expenses total $75,000 per
year, and the company must sell 7,500 units to break even. If the
company has a target profit of $16,000, sales in units must be:

Metal Industries has monthly fixed costs totaling $90,000 and
variable costs of $5 per unit. Each unit of product is sold for
$20.
Assume the company expects to sell 11,850 units of product this
coming month. What is the margin of safety in units?
Group of answer choices
8,850
6,600
5,850
7,350
Tech Products, Inc. has monthly fixed costs totaling $90,000 and
variable costs of $5 per unit. Each unit of product is sold for
$20.
How many units must...

Dalton Corporation has fixed manufacturing cost of $10 per unit.
Consider the three independent cases that follow.
Case A: Absorption- and variable costing income each totaled
$260,000 in a period when the firm produced 18,000 units.
Case B: Absorption-costing income totaled $340,000 in a period
when finished-goods inventory levels rose by 9,000 units.
Case C: Absorption-costing income and variable-costing income
respectively totaled $240,000 and $290,000 in a period when the
beginning finished-goods inventory was 18,000 units.
Required:
A. In Case...

A firm has fixed expenses of $3,500 per month and will sell its
product for $30.00. Variable expenses are $28.00 per unit.
How many units must be sold for the firm to break even?

3. Troy Corporation has the following budgeted sales for the
selected four-month period: Month Unit Sales October 40,000
November 70,000 December 50,000 January 60,000
There were 14,000 units of finished goods in inventory at the
beginning of October. Plans are to have an inventory of finished
product equal to 25 percent of the unit sales for the next month.
Five pounds of a single raw material are required for each unit
produced. Each pound of material costs $10. Plans are...

Suppose a company has fixed costs of $44,800 and variable cost
per unit of 1 3 x + 222 dollars, where x is the total number of
units produced. Suppose further that the selling price of its
product is 1654 − 2 3 x dollars per unit.
Find break even
Fine max revenue

1. Maruska Corporation has provided the following data
concerning its only product:
Selling Price Per Unit
$ 180
Current Sales (Units)
29,800
Break-Even Sales (Units)
25,032
What is the margin of safety in dollars?
$4,505,760
$858,240
$3,576,000
$5,364,000
2.
Hettrick International Corporation's only product sells for
$120.00 per unit and its variable expense is $52.80. The company's
monthly fixed expense is $396,480 per month. The unit sales to
attain the company's monthly target profit of $13,000 is closest
to:...

Maple Inc. manufactures a product that costs $21 per unit plus
$46,000 in fixed costs each month. Maple currently sells 5,000 of
these units per month for $43 each. If Maple leased a machine for
$10,000 a month, it could add features to the product that would
allow it to sell for $46 each. It would cost an additional $4 per
unit to add these features. How much would Maple's profit be
affected if it leased the machine and added...

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