4. Your company is producing 750,000 units a year. All 750,000 units sell for P10 million. If cost of materials per unit is P11 and annual fixed operating expenses is P225,000, how many units needs to be sold to break even?

4. Your company is producing 750,000 units a year. All 750,000 units sell for P10 million. If cost of materials per unit is P11 and annual fixed operating expenses is P225,000, how many units needs to be sold to break even?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: ?

A: Part a & b:In the case of production, the producer faces two types of cost:Fixed Costs: The…

Q: Shonda & Shonda is a company that does land surveys and engineering consulting. They have an…

A: Contribution margin : Contribution is the reward for the efforts of the entrepreneur or owner of a…

Q: Marigold Corp. has fixed costs of $2200000 and variable costs are 20% of sales. What are the…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS Answer = $3,000,000

Q: A manufacturer of plastic traffic cones sells the cones at a wholesale cost of £8 pounds per cone.…

A: Annual profit = Contribution margin - Annual overhead costs where, Contribution margin = (Sales per…

Q: In a slow year, Deutsche Burgers will produce 4.0 million hamburgers at a total cost of $5.5…

A: The total costs incurred for the production are classified as fixed and variable costs. The high-low…

Q: 4. A firm produces and sells a product with a contribution margin of $32 per unit. The firm is…

A: Lets understand the basics. Break even point is a point at which no profit and loss arise. In other…

Q: 1- The company is discussing the construction of a new, automated manufacturing plant. The new plant…

Q: ?

A: GivenIn Slow yearNumber of hamburgers produce = 3.8 millionTotal Cost = 5.4 millionIn Good…

Q: 10) An entrepreneur conducted research for a new product indicates that it can be sold for $75 per…

A: The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The…

Q: Your storage firm has been offered $96,100 in one year to store some goods for one year. Assume your…

A: Cash flow in one year = $96,100Cost of capital (k) = 8.9% or 0.089Initial investment = $97,000We…

Q: ABC Co. sells chairs for $90 per unit. The variable expenses are $63 per chair and the fixed costs…

A: Degree of leverage is used to measure the flexibility of increase in the net income due to increase…

Q: Sales (150,000 @ P30) Cost of Goods Sold: 4,500,000 1,050,000 1,500,000 450,000 Materials Labor…

A: Given:

Q: 1. What is Wyndham's current total cost of making and selling 6 million cans of paint? What is the…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Swifty Corporation is planning to sell 810000 units for $1.50 per unit. The contribution margin…

A: Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with…

Q: Dishman Ltd plans to sell 200,000 items a year for £15 each. Fixed costs are £360,000 a year and…

A: Margin of safety is the difference between the actual sales for the current period and the break…

Q: Crane Company expects to sell 520000 units for $6 per unit. The contribution margin ratio is 20%. If…

A: Breakeven Point is that level of sales at which there is no profit no loss. In other words at this…

Q: our company has been doing well, reaching $1.15 million in earnings, and is considering launching a…

A: Here, Depreciation is 7 Year MACRS Depreciation Rate of Depreciation under MACRS Depreciation for…

Q: Question 2: An item may be bought for a price of $12 a piece. Making it would require buying a…

A: Financial break even point when net present value is zero and there is no loss and profit situation…

Q: Outrigger Leisure Products sells 2,000 kayaks per year at a price of $450 per unit. Outrigger sells…

A: A variable cost is one that varies according to the amount of production or the quantity of services…

Q: A 99 - room hotel's fixed cost is 1 million per year and the variable cost is 40% of revenue. If 75%…

A: Both fixed and variable costs must be taken into account in order to determine the hotel's breakeven…

Q: Clockmaker Ltd. makes a product called wallet. Managers from Clockmaker Ltd. want to achieve a…

A: The contribution Margin is calculated as difference between sales and variable cost. The break even…

Q: ?

Q: . A ceramics manufacturer sold cups last year for P7.50 each. Variable costs of manufacturing were…

A: Solution The problem relates to breakeven analysis and the cost volume profit analysis…

Q: If the fixed costs of manufacturing a new cell phone are $9,000, the sales price is $100, and…

A: Break-Even Point is when the company recovered its fixed cost from its profit but did not earn…

Q: HH Aaron Company is planning to sell Product X for $80 per unit. Variable costs are $50 a unit and…

A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: what is the minimum selling price the company will have to charge per unit?

A: Given in the question: Monthly Fixed Costs = £230,000 Marginal Cost per Unit = £76 Profit required…

Q: A company requires $1400000 is sales to meet its net income target. Its contribution margin is 50%…

A: Contribution margin :— It is calculated by multiplying contribution margin ratio with sales revenue.…

Q: A factory costs $970,000. You reckon that it will produce an inflow after operating costs of…

A: The present value function or concept can be used to determine the present value of a future sum or…

Question

4. Your company is producing 750,000 units a
year. All 750,000 units sell for P10 million. If cost
of materials per unit is P11 and annual fixed
operating expenses is P225,000, how many units
needs to be sold to break even?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

If the objective of the firm is to get 25% profit, how many units does the firm need to sell if the price per unit is $250? Given information: Annual fixed costs are 114,000, CTO is .65, breakeven point is 175,384.62.
?
?
D) Brolin Company sells a single product. The product has a selling price of $50 and variable expenses of 80% of sales. If the company's fixed expenses total $150,000 per year, what is the company's break-even point in sales dollars? per unit $750,000 A) $187,500 B) $15,000 C) $3,750 D) Page 2 of 4 O 48°F Sunny re to search