2:04 4G. 37% and then sells those units to its customers. Calculate the break-even point in unit s Neptune plans to use all "of its production capacity to produce the first 25,000 unit also commits to hiring the outside supplier to produce up to 10,000 additional unit Neptune plans to use all of its production capacity to produce the first 25,000 units also commits to hiring the outside supplier to produce up to 10,000 additional unit sales would Neptune need to achieve in order to equal the profit earned in require total unit sales would Neptune need to achieve in order to attain a target profit of How much profit will Neptune earn if it sells 35,000 units per month? d. How much earn if it sells 35,000 units per month and agrees to pay its marketing manager a b unit sold above the break-even point from requirement 3? If Neptune outsources outside supplier, how much profit will the company earn if it sells 35,000 units? \tal in unit sales - without hining,15,000,units],[2a. Profit if produces and sells,$60,000,1. production and sells, $40,000,],[3. Break-even point in unit sales - hiring,,units],[4a. b. Total unit sales to achieve a target Profit of $60,500,,],[4c. Net operating income, income - bonus to markeling manager..],[5. Net operaling income-fully outsource questions please Wilge vetween 20,000 units and 35.UUU units per month. The new toy will sell for $8.00 per unit. Enough capacity exists in the company's plant to produce 25,000 units of the toy each month. Variable expenses to manufacture and sell one unit would be $4.00. and incremental fixed expenses associated with the toy would total $36.000 per month. Neptune has also identified an outside supplier who could produce the toy for a price of $3.00 per unit plus a fixed fee of $65,000 per month for any production volume up to 25,000 units. For a production volume between 25,001 and 55,000 units the fixed fee would increase to a total of $130,000 per month. Required: 1. Calculate the break-even point in unit sales assuming that Neptune does not hire the outside supplier. (Do not round your Intermediate calculations.) 2. How much profit will Neptune earn assuming: a. It produces and sells 25,000 units. b. It does not produce any units and instead outsources the production of 25,000 units to the outside supplier and then sells those units to its customers. 3. Calculate the break-even point in unit sales assuming that Neptune plans to use all of its production capacity to produce the first 25,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 10,000 additional units. 4. Assume that Neptune plans to use all of its production capacity to produce the first 25,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 10,000 additional units. a. What total unit sales would Neptune need to achieve in order to equal the profit earned in requirement 2a? b. What total unit sales would Neptune need to achieve in order to attain a target profit of $66,500 per month? c. How much profit will Neptune earn if it sells 35,000 units per month? d. How much profit will Neptune earn if it sells 35,000 units per month and agrees to pay its marketing manager a bonus 20 cents for each unit sold above the break-even point from requirement 3? 5. If Neptune outsources all production to the outside supplier, how much profit will the company earn if it sells 35,000 units? 1. Break-even point in unit sales - without hiring 2a. Profit if produces and sells 2b. Profit if outsources production and sells 3 Break-even point in unit sales - hiring 4a. Total unit sales 4b. Total unit sales to achieve a target Profit of $08,500 4c. Net operating income 4d. Net operating income-bonus to marketing manager 5. Net operating income-fully outsourced 15,000 units 60,000 40,000 units units units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
2:04
4G.
37%
and then sells those units to its customers. Calculate the break-even point in unit s
Neptune plans to use all "of its production capacity to produce the first 25,000 unit
also commits to hiring the outside supplier to produce up to 10,000 additional unit
Neptune plans to use all of its production capacity to produce the first 25,000 units
also commits to hiring the outside supplier to produce up to 10,000 additional unit
sales would Neptune need to achieve in order to equal the profit earned in require
total unit sales would Neptune need to achieve in order to attain a target profit of
How much profit will Neptune earn if it sells 35,000 units per month? d. How much
earn if it sells 35,000 units per month and agrees to pay its marketing manager a b
unit sold above the break-even point from requirement 3? If Neptune outsources
outside supplier, how much profit will the company earn if it sells 35,000 units? \tal
in unit sales - without hining,15,000,units],[2a. Profit if produces and sells,$60,000,1.
production and sells, $40,000,],[3. Break-even point in unit sales - hiring,,units],[4a.
b. Total unit sales to achieve a target Profit of $60,500,,],[4c. Net operating income,
income - bonus to markeling manager..],[5. Net operaling income-fully outsource
questions please
Wilge vetween 20,000 units and 35.UUU units per month. The new toy will sell
for $8.00 per unit. Enough capacity exists in the company's plant to produce 25,000 units of the toy each month. Variable expenses to
manufacture and sell one unit would be $4.00. and incremental fixed expenses associated with the toy would total $36.000 per
month.
Neptune has also identified an outside supplier who could produce the toy for a price of $3.00 per unit plus a fixed fee of $65,000 per
month for any production volume up to 25,000 units. For a production volume between 25,001 and 55,000 units the fixed fee would
increase to a total of $130,000 per month.
Required:
1. Calculate the break-even point in unit sales assuming that Neptune does not hire the outside supplier. (Do not round your
Intermediate calculations.)
2. How much profit will Neptune earn assuming:
a. It produces and sells 25,000 units.
b. It does not produce any units and instead outsources the production of 25,000 units to the outside supplier and then sells those
units to its customers.
3. Calculate the break-even point in unit sales assuming that Neptune plans to use all of its production capacity to produce the first
25,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 10,000 additional units.
4. Assume that Neptune plans to use all of its production capacity to produce the first 25,000 units that it sells and that it also commits
to hiring the outside supplier to produce up to 10,000 additional units.
a. What total unit sales would Neptune need to achieve in order to equal the profit earned in requirement 2a?
b. What total unit sales would Neptune need to achieve in order to attain a target profit of $66,500 per month?
c. How much profit will Neptune earn if it sells 35,000 units per month?
d. How much profit will Neptune earn if it sells 35,000 units per month and agrees to pay its marketing manager a bonus 20
cents for each unit sold above the break-even point from requirement 3?
5. If Neptune outsources all production to the outside supplier, how much profit will the company earn if it sells 35,000 units?
1. Break-even point in unit sales - without hiring
2a. Profit if produces and sells
2b. Profit if outsources production and sells
3 Break-even point in unit sales - hiring
4a. Total unit sales
4b. Total unit sales to achieve a target Profit of $08,500
4c. Net operating income
4d. Net operating income-bonus to marketing manager
5. Net operating income-fully outsourced
15,000 units
60,000
40,000
units
units
units
Transcribed Image Text:2:04 4G. 37% and then sells those units to its customers. Calculate the break-even point in unit s Neptune plans to use all "of its production capacity to produce the first 25,000 unit also commits to hiring the outside supplier to produce up to 10,000 additional unit Neptune plans to use all of its production capacity to produce the first 25,000 units also commits to hiring the outside supplier to produce up to 10,000 additional unit sales would Neptune need to achieve in order to equal the profit earned in require total unit sales would Neptune need to achieve in order to attain a target profit of How much profit will Neptune earn if it sells 35,000 units per month? d. How much earn if it sells 35,000 units per month and agrees to pay its marketing manager a b unit sold above the break-even point from requirement 3? If Neptune outsources outside supplier, how much profit will the company earn if it sells 35,000 units? \tal in unit sales - without hining,15,000,units],[2a. Profit if produces and sells,$60,000,1. production and sells, $40,000,],[3. Break-even point in unit sales - hiring,,units],[4a. b. Total unit sales to achieve a target Profit of $60,500,,],[4c. Net operating income, income - bonus to markeling manager..],[5. Net operaling income-fully outsource questions please Wilge vetween 20,000 units and 35.UUU units per month. The new toy will sell for $8.00 per unit. Enough capacity exists in the company's plant to produce 25,000 units of the toy each month. Variable expenses to manufacture and sell one unit would be $4.00. and incremental fixed expenses associated with the toy would total $36.000 per month. Neptune has also identified an outside supplier who could produce the toy for a price of $3.00 per unit plus a fixed fee of $65,000 per month for any production volume up to 25,000 units. For a production volume between 25,001 and 55,000 units the fixed fee would increase to a total of $130,000 per month. Required: 1. Calculate the break-even point in unit sales assuming that Neptune does not hire the outside supplier. (Do not round your Intermediate calculations.) 2. How much profit will Neptune earn assuming: a. It produces and sells 25,000 units. b. It does not produce any units and instead outsources the production of 25,000 units to the outside supplier and then sells those units to its customers. 3. Calculate the break-even point in unit sales assuming that Neptune plans to use all of its production capacity to produce the first 25,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 10,000 additional units. 4. Assume that Neptune plans to use all of its production capacity to produce the first 25,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 10,000 additional units. a. What total unit sales would Neptune need to achieve in order to equal the profit earned in requirement 2a? b. What total unit sales would Neptune need to achieve in order to attain a target profit of $66,500 per month? c. How much profit will Neptune earn if it sells 35,000 units per month? d. How much profit will Neptune earn if it sells 35,000 units per month and agrees to pay its marketing manager a bonus 20 cents for each unit sold above the break-even point from requirement 3? 5. If Neptune outsources all production to the outside supplier, how much profit will the company earn if it sells 35,000 units? 1. Break-even point in unit sales - without hiring 2a. Profit if produces and sells 2b. Profit if outsources production and sells 3 Break-even point in unit sales - hiring 4a. Total unit sales 4b. Total unit sales to achieve a target Profit of $08,500 4c. Net operating income 4d. Net operating income-bonus to marketing manager 5. Net operating income-fully outsourced 15,000 units 60,000 40,000 units units units
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education