A product sells for $200 per unit and its variable costs per unit are $130. Total fixed costs are $420,000. If the firm wants to earn a $35,000 target pretax income, how many units must be sold?Select one:6,500 units.O b.5,000 units.O c. 6,000 units.O d. 500 units.O e. 5,500 units.O a.

First, we calculate the contribution margin per unitContribution Margin per Unit = Selling Price per…

Answered: A product sells for $200 per unit and…

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?
Total fixed cost of a product is IDR 10,000,000 and variable cost is IDR 50,000 per unit. The sale price is IDR.75,000 per unit . How much products should be produced to get BEP? Prove your answer and make a graphic. ..And If the company need profit IDR 10,000,000. How much is the sales price? Prove your answer.
Company XYZ is producing and selling 2,500. At this level, the selling price per unit is $10, the variable expenses per ?unit is $6, and fixed expenses are $1,500. How much is the profit $13,500 a O $8,500 .b O $16,000 .c O $11,000 .d O $6,000 .e O
Please help with multiple choice questions.
A firm expects to sell 25,200 units of its product at $7 per unit. Pretax income is predicted to be $60,200. If the variable costs per unit are $3, total fixed costs must be: Multiple Choice O $15,400. $176,400. $75,600. $40,600. $116,200.
A product sells for $295 per unit, and its variable costs per unit are $217. Total fixed costs are $439,000. If the firm wants to earn $82,820 pretax income, how many units must be sold? Multiple Choice 6,990. 7,090. 6,690. 6,890. 6,790.
A company would like to determine various costs and points to aid them in deciding whether to expand or not. If you are given the following information, compute the required amounts and / or figures.Selling price / unit = P100 Variable cost / unit = P70Annual fixed cost = P500,000 Compute 5. Sales in units to earn a profit of 10% of sales.
Solomon company has total fixed cost of $15,000, variable cost per unit of $6, and a price of $8. If Solomon wants to earn a target profit of $3,600, how many units must be sold? 2,500 7,500 9,300 18,600 18,750
XYZ company has sales of $300,000, a contribution margin ratio of 50%, and a target profit of $30,000. If 20,000 units were sold, what is the variable cost per unit? Select one: a. $9.00 b. $6.00 c. $7.50 d. none of the given answers. e. $10.00
Assume your product is priced at $10.00. The variable cost per unit is currently S5.00, and fixed costs are $ 10.000. What is your breakeven point? C) a) 2.000 units () b) 3,000 units C c) 2.500 units d) 3,500 units

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A product sells for $200 per unit and its variable costs per unit are $130. Total fixed costs are $420,000. If the firm wants to earn a $35,000 target pretax income, how many units must be sold? Select one: