Breakeven Analysis and Layout Design-1
xlsx
keyboard_arrow_up
School
Dav Sr. Public School *
*We aren’t endorsed by this school
Course
213
Subject
Finance
Date
Nov 24, 2024
Type
xlsx
Pages
7
Uploaded by KidWildcatPerson631
Question 1
1 Given information:
Fixed Costs = $15,200 per month
Variable Costs per 1000 cups = $10
Selling Price per Box = $15
Break-Even Volume: The break-even volume can be calculated by solving the equation: Total Co
Subtracting $10X from both sides: $15,200 = $5X
Solving for X (volume in boxes): X = $15,200 / $5 = 3,040 boxes
Number of the cups need to break even= number of boxes*1000
3040*1000=304
2 Profit on 6,000 Boxes: Profit = Total Revenue - Total Costs Profit = (6,000 * $15) - ($15,200 + $10
3 Volume for $10,000 Profit: To calculate the volume required to obtain a profit of $10,000 per m
4 Graph
Number of boxes
cost
Revenue
1000
25200
15000
2000
35200
30000
3000
45200
45000
4000
55200
60000
5000
65200
75000
6000
75200
90000
7000
85200
105000
Cost =$15,200+$10x
Revenue = $15x
Question 2
Since we're aiming to minimize traffic flow, we will prioritize placing departments with high cust
Highlighted Numbers
Men's and Women's (20 trips)
Kid's and Women's (80 trips)
Kid's and Sporting (25 trips)
Sporting and Electronics (60 trips)
Assignments:
Place Kid's and Women's departments in location C due to their 80 trips per day between them
Place Kid's and Sporting departments in location F due to their 25 trips per day between them.
Place Sporting and Electronics departments in location D due to their 60 trips per day between
Place Men's and Women's departments in location B due to their 20 trips per day between them
Place Kitchen in location A.
In summary, the assignment is as follows:
A: Kitchen
B: Men's and Women's
C: Kid's and Women's
D: Sporting and Electronics
E: (Unassigned)
F: Kid's and Sporting
This arrangement aims to minimize traffic flow by placing departments with high customer trips
osts = Total Revenue $15,200 + $10X = $15X
40000
0 * 6,000) Profit = $90,000 - $15,200 - $60,000 = $14,800
month, we can rearrange the profit formula: Profit = (Selling Price per Box - Variable Costs per Box) * Volume - Fix
1
2
3
4
5
6
7
0
20000
40000
60000
80000
100000
120000
Chart Title
cost
Revenue
Break-Even = 3040 boxes
Profit = $14
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
tomer trips adjacent to each other. Let's use the given data:
m.
them.
m.
s adjacent to each other.
xed Costs $10,000 = ($15 - $10) * X - $15,200 $5X = $25,200 X = $25,200 / $5 = 5,040 boxes
4800
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Documents
Related Questions
Looking at the graph, which of the following statements must be true?
12,000
10,000
8,000
6,000
4,000
2,000
Sales Volume Units:
37.00
Unit Sales Breakeven
14.52
12.52
9.25
Contribution Margin per Unit: Fixed Costs per Unit:
10.52
5.29
8.52
3.70
6.52
2.85
O The Contribution Margin Per Unit is Increasing
O The CM Breakeven Point Per Unit is $10.52
O The Selling Price Per Unit Is Decreasing
O The Firm's Fixed Costs Per Unit is Increasing
4.52
2:31
Test 1 Test 2 Test 3 Test 4 Test 5 Test 6
2.53
Test 7 Test 8 Test 9
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
1.48
(1.48)
(5.00)
arrow_forward
QUESTION 2
Luna Sea Sushi, Inc. has total costs of $120,000 when it sells 40,000 units. If total fixed costs are $40,000, what is variable cost per
unit?
arrow_forward
Please help me with all
arrow_forward
Need
arrow_forward
Need help with this question solution general accounting
arrow_forward
Assume the following information:
Selling price
Variable expense ratio
Fixed expenses
Unit sales
Multiple Choice
O
O
How many units need to be sold to achieve a target profit of $16,900?
4,150 units
1,019 units
2,817 units
Amount
6,220 units
$30
80%
$ 8,000 per month
3,400 per month
arrow_forward
solve for a and b
arrow_forward
need help this questions
arrow_forward
A firm makes two products, Alpha and Beta.
Alpha
Beta
Sales price per unit
$7.00
$10.00
Variable cost per unit
$4.00
$8.00
Demand
5,000
4,000
Machine hours used
5
2
The total available machine hours is 10,000.
How many of Alpha should be in the product mix to maximize the profit?
arrow_forward
Massey Company reported the following data regarding the product it sells:
Sales price
Contribution margin ratio
Fixed costs
$4
25
40%
$810,000
Required
Use the contribution margin ratio approach and consider each requirement separately.
a. What is the break-even point in dollars? In units?
b. To obtain a profit of $270,000, what must the sales be in dollars? In units?
c. If the sales price increases to $30 and variable costs do not change, what is the new break-even point in dollars? In units?
Break-even point in dollars
Break-even point in units
b. Sales in dollars
Sales in units
C.
Break-even point in dollars
Break-even point in units
arrow_forward
Hello Tutor I want the correct Answer please provide also Definitions
arrow_forward
Assume your product is priced at $10. The variable cost per unit is currently $5, and fixed costs are $10,000. What is your breakeven point? O 3,000 units O 2,000 units O 2,500 units 3,500 units
arrow_forward
Problem 10. Bulac Corporation manufactures and sells two products – Bangus and Tupig. Current revenue,
costs and sales data on the two products appear below.
Bangus
P400
Tupig
P600
Selling price per unit
Variable cost per unit
Number of units sold monthly
240
120
200 units
300 units
Fixed costs and expenses are P704,000 per month.
Required:
a. Average contribution margin ratio.
b. Composite breakeven point in units and in pesos.
c. Allocation of composite breakeven point in units.
d. Assuming the company increases its fixed costs and expenses by P140,800, how many units of
Bangus and Tupig should be sold at breakeven point?
e. Refer to the original data, assuming the sales mix between Bangus and Tupig is 500 units for
Bangus and 300 units for Tupig, what is the new combined breakeven point in units and in
pesos?
f. Consider the original data, except that Pangasinan Company based its sales mix in units.
Determine the following:
i. Average UCM.
ii. Composite BEP in units and in pesos.
arrow_forward
Zachary Company reported the following data regarding the product it sells:
11
Sales price
Contribution margin ratio
Fixed costs
48
25%
$336,000
Required
Use the contribution margin ratio approach and consider each requirement separately.
a. What is the break-even point in dollars? In units?
b. To obtain a profit of $48,0000, what must the sales be in dollars? In units?
c. If the sales price increases to $60 and variable costs do not change, what is the new break-even point in dollars? In units?
a Break-even point in dollars
Break-even point in units
b. Sales in dollars
Sales in units
c Break-even point in dollars
Break-even point in units
arrow_forward
Please answer last 4 requiremnt i.e d,e,f and g
Ozark Metal Co. makes a single product that sells for $43 per unit. Variable costs are $29.8 per unit, and fixed costs total
$65,500 per month.
Required:
a. Calculate the number of units that must be sold each month for the firm to break even.
b. Assume current sales are $406,000. Calculate the margin of safety and the margin of safety ratio.
c. Calculate operating income if 6,700 units are sold in a month.
d. Calculate operating income if the selling price is raised to $46 per unit, advertising expenditures are increased by $7,500
per month, and monthly unit sales volume becomes 7,400 units.
e. Assume that the firm adds another product to its product line and that the new product sells for $21 per unit, has variable
costs of $15 per unit, and causes fixed expenses in total to increase to $88,000 per month. Calculate the firm's operating
income if 6,700 units of the original product and 4,900 units of the new product are sold each month.…
arrow_forward
Assume the following:
1. selling price per unit = $25
2. variable expense per unit = $13
3. the total fixed expenses = $20,000
4. net operating income = $14,200
Given these four assumptions, unit sales must be:
Multiple Choice
3,420 units.
1,200 units.
2,342 units.
2,850 units.
arrow_forward
If selling price $40 per unit
Variable cost $25 per unit
Fixed cost $45000
Required:
a) What is the breakeven point per unit ?
b)What is the activity level to generate a profit of $40000
c)If the company budgets to sell 5000 units of a product. Calculate the margin of safety.
d) Calculate the contribution/Sales Ratio of the product.
e)Find the breakeven point in sales revenue.
f) Calculate the sales revenue that is required to generate a profit of $40000.
NB: Please to answer question a-f seperately
arrow_forward
8. Assume that Current Sales are $100,000; and Break even in sales dollars is $75,000. What is the Margin of Safety ratio?
a. 25%
b. 50%
c. 75%
d. 100%
9. Assume Fixed costs are $10,000; Selling price is $30 and variable costs are $10. What is the break even in units? Give answer to the nearest unit.
Group of answer choices
a. 500 units
b. 1,000 units
c. 250 units
d 334 units
10. If Direct Labor is 1 hour per unit at a rate of $25 per hour, what would be the budgeted amount for Direct Labor costs for the year if we expect to use 500 hours in the first six months and 600 hours in the second six months?
a. $55,000
b. $27,500
c. $2,200
f $25,000
11. If Variable MOH is $2 per direct labor hour and the fixed MOH (all cash) is $2,500 per month, what is the amount of MOH budgeted for the month if 1,000 Direct Labor hours are budgeted?
a. $2,500
b. $2,000
c. $4,500
d. $5,000
12. Assume Fixed costs are $10,000; Selling price is $30 and…
arrow_forward
Want answer
arrow_forward
Given the following data:
Fixed overheads
Selling price
Variable cost per unit
Select one:
O A. 8,000 units
B. 10,000 units
£40 000
If the selling price is increase by 50% then the break-even level would now be:
O C. 20,000 units
O D. 12,500 units
£6
£4
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Related Questions
- Looking at the graph, which of the following statements must be true? 12,000 10,000 8,000 6,000 4,000 2,000 Sales Volume Units: 37.00 Unit Sales Breakeven 14.52 12.52 9.25 Contribution Margin per Unit: Fixed Costs per Unit: 10.52 5.29 8.52 3.70 6.52 2.85 O The Contribution Margin Per Unit is Increasing O The CM Breakeven Point Per Unit is $10.52 O The Selling Price Per Unit Is Decreasing O The Firm's Fixed Costs Per Unit is Increasing 4.52 2:31 Test 1 Test 2 Test 3 Test 4 Test 5 Test 6 2.53 Test 7 Test 8 Test 9 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 1.48 (1.48) (5.00)arrow_forwardQUESTION 2 Luna Sea Sushi, Inc. has total costs of $120,000 when it sells 40,000 units. If total fixed costs are $40,000, what is variable cost per unit?arrow_forwardPlease help me with allarrow_forward
- Needarrow_forwardNeed help with this question solution general accountingarrow_forwardAssume the following information: Selling price Variable expense ratio Fixed expenses Unit sales Multiple Choice O O How many units need to be sold to achieve a target profit of $16,900? 4,150 units 1,019 units 2,817 units Amount 6,220 units $30 80% $ 8,000 per month 3,400 per montharrow_forward
- solve for a and barrow_forwardneed help this questionsarrow_forwardA firm makes two products, Alpha and Beta. Alpha Beta Sales price per unit $7.00 $10.00 Variable cost per unit $4.00 $8.00 Demand 5,000 4,000 Machine hours used 5 2 The total available machine hours is 10,000. How many of Alpha should be in the product mix to maximize the profit?arrow_forward
- Massey Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs $4 25 40% $810,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $270,000, what must the sales be in dollars? In units? c. If the sales price increases to $30 and variable costs do not change, what is the new break-even point in dollars? In units? Break-even point in dollars Break-even point in units b. Sales in dollars Sales in units C. Break-even point in dollars Break-even point in unitsarrow_forwardHello Tutor I want the correct Answer please provide also Definitionsarrow_forwardAssume your product is priced at $10. The variable cost per unit is currently $5, and fixed costs are $10,000. What is your breakeven point? O 3,000 units O 2,000 units O 2,500 units 3,500 unitsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning