A company reports the information below for the single product it produces and sells.Sales price per unitVariable costs per unitTotal fixed costs(1) Compute contribution margin per unit.$95$38$193,800Contribution margin(2) Compute the break-even point in units.Numerator1per unitper unitper unitDenominator(3) Compute income in dollars if 3,700 units are sold.XBreak EvenUnits= Break even unitsFixed costsIncome

The contribution margin is calculated as the difference between the sales and variable costs. The…

Answered: A company reports the information below…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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RDWMNE769 Corp. sells a single product. Selling price per unit $12 Variable expense per unit $2.00 Current Sales in units 16,000 RDWMNE769's current net operating income is equal to 0.31 of current sales. Q. What is RDWMNE769's fixed cost? A. $
You are provided with the following data. I Unit sales 5 Selling price per unit 5 7 8 Variable expenses per unit Fixed expenses Target Profit 9 10 Required: 11 12 13 Contribution margin per unit 14 15 CM ratio 16 Variable expense ratio 17 18 Compute the break-even. 19 20 Break-even in unit sales $ Dagate ssss is $ 80,000 units 70 per unit 28 per unit Compute the CM ratio and variable expense ratio. $ 2,688,000 $ 1,610,000
Calculate the breakeven point and contribution margin. Breakeven point 38,550 units Fixed cost $ 77,100 Contribution margin Selling price per unit $ 5 Variable cost per unit 3
The following information is for Alex Corp: Product X: Revenue Variable Cost Product Y: Revenue Variable Cost Total fixed costs $12.00 $4.50 $25.00 $10.00 $40,500 What is the operating income, assuming actual sales total 120,000 units, and the sales mix is two units of Product X and one unit of Product Y? 1,960,000 1,240,500 1,200,000 1,159,500
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
Your Company sells 3 products, A, B and C that use the same company, facility and resources. Details are below: A Average monthly units sold 10,000 2,000 8,000 Sales price per unit 2,000 1,000 5,000 Variable cost per unit 1,500 500 3,000 Total break even units are 1,000. 1. Calculate: i. Quantity and value of units of each A, B and C at breakeven Fixed cost based on the data given above ii. 2. Without making further calculations, explain that if fixed cost increases by 10% what impact would this have on the break-even point?
Thornton Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $44. 12 Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative 17 per unit 6 per unit $152,000 per year $102,100 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $178,500. c. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 21,400 units, how much could it pay in salaries for salespeople and still have a profit of $178,500? (Hint Use the equation method.) a. Break-even point in units Break-even point in dollars b Required sales in units Required sales in dollars C Fixed cost of salaries
Consider the following: (Click the icon to view the cases.) Requirement 1. Fill in the blanks for each of the independent cases. (a) Selling Price (b) (c) (d) (e) (f) Variable Cost Total Total Contribution Total Fixed Case per Unit per Unit Units Sold Margin Costs Net Income 12345 £ 25 128,000 £ 1,024,000 £ 953,000 13 4 100.000 823,000 22 13 243,000 13,000 29 23 65,000 25,000 12 80.000 240,000 192,000
• Use the below information to fill out the income statement and answer the questions 4-10 below: Selling Price per Unit Number of Units Total Dollars Sales Revenue $40.00 Variable Costs |600,000 Contribution Margin Fixed Costs 240,000 Net Income If OPEARATING LEVERAGE is 5 4. What is Net Income ?

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