Sell A company sells a product for $40 per unit, with variable costs of $25 perunit and fixed costs of $45,000. How many units must the companyto break even?sell

Break-even point (units)= Fixed Costs÷(Selling Price per Unit−Variable Cost per Unit)Selling Price…

Answered: A company sells a product for $40 per…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs per gas grill are 225, and the average price per gas grill is 600. Required: 1. How many gas grills must Gelbart Company sell to break even? 2. If Gelbart Company sells 46,775 gas grills in a year, what is the operating income? 3. If Gelbart Companys variable costs increase to 240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?
A company faces fixed costs of $100,000 and variable costs of $8.00/unit. They plan to directly sell their product to the market for $12.00. How many units must they produce and sell to break even?
A company sells its product for $33 per unit, with variable costs of $18 per unit and fixed costs totaling $4,500. How many units must it sell to break even? Want Answer
A company sells its product for $33 per unit, with variable costs of $18 per unit and fixed costs totaling $4,500. How many units must it sell to break even?
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A company sells its product for $33 per unit, with variable costs of $18 per unit and fixed costs totaling $4,500. How many units must it sell to break even? Question
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A certain product sells for $55. It has variable costs of $33 per unit and fixed costs of $300,000 per year. How many products must the company manufacture to break even?(Round your answer to nearest unit number)
A CERTAIN PRODUCT SELLS FOR $55. IT HAS VARIABLE COSTS OF $33 PER UNIT AND FIXED COSTS OF $300,000 PER YEAR. HOW MANY THE PRODUCTS MUST COMPANY MANUFACTURE TO BREAK EVEN?

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A company sells a product for $40 per unit, with variable costs of $25 per unit and fixed costs of $45,000. How many units must the company to break even? sell