A product sells for $30 per unit and has variable costs of $18.00 per unit. The fixedcosts are $960,000. If the variable costs per unit were to decrease to $16.50 perunit, fixed costs increase to $1,080,000, and the selling price does not change,break-even point in units would:Multiple ChoiceOOEqual 6,000.Increase by 24,828.Not change.Increase by 4,000.Decrease by 24,828.

At Break even point total contribution margin will be equal to total fixed cost. Thus at break even…

Answered: A product sells for $30 per unit and…

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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Altstadt Inc. sells a product for $50 per unit. The variable cost is $20 per unit, and fixed costs are $1,800,000. Determine (a) the break-even point in sales units and (b) the sales units required to achieve a target profit of $270,000. a. Break-even point in sales units fill in the blank 1 units b. Break-even point in sales units required to achieve a target profit of $270,000 fill in the blank 2 units
Gladstorm Enterprises sells a product for $60 per unit. The variable cost is $40 per unit, while fixed costs are $85,000. Determine the (a) break-even point in sales units and (b) break-even point in sales units if the selling price increased to $75 per unit.
If fixed costs are $1,214,000, the unit selling price is $204, and the unit variable costs are $109, what is the break-even sales (units) if fixed costs are increased by $41,200? a.19,819 units b.15,855 units c.13,213 units d.10,570 units
Revenue from product X is $4,000. Total variable costs for product X are $2,500. The allocated fixed costs for product X are $1,000. If you drop product X in the long term, profit will: decrease by $500 increase by $1,500 O increase by $3,000 O decrease by $1,500 increase by $750
The current situation of XZ company is as follows: Variable costs are 84% of sales and fixed costs are $40 000. a) A suggestion is made to improve the profit by increasing the contribution margin. If the contribution margin can be improved by 6% of sales by increasing fixed costs by $10 000, will the break even point be lower? b) If sales are currently $300 000, will the profit be better, assuming no increase in sales?
Gladstorm Enterprises sells a product for $50 per unit. The variable cost is $34 per unit, while fixed costs are $14,560. Determine the following: Round your answers to the nearest whole number. a. Break-even point in sales units _________ units b. Break-even point in sales units if the selling price increased to $60 per unit __________ units
Zeke Company sells a single product. The selling price per unit is $32 and unit variable cost is $24. Fixed costs for the year are $100,200. What if selling price goes up by 13%, variable costs go up by 11% and fixed costs go up by 13%? What is the new breakeven point in units? Do not round any intermediate calculations. Round your final answer up to the nearest whole number.
2
Sales revenue from product X is $9,000, variable costs are $6,000, and allocated fixed costs are $4,500. If you drop product X in the short term, profit will: decrease by $1,500 O decrease by $5,250 increase by $3,000 O increase by $1,500 decrease by $3,000
The sole product of Kilo Company sells for $10 and its fixed costs total $220,000. If its break-even point is 170,000 units, what is its variable cost per unit? Select one: A. $8.71 B. $7.41 C. $9.23 D. $1.29 E. The answer cannot be determined by the information given.
Currently, the unit selling price of a product is $350, the unit variable cost is $290, and the total fixed costs are $840,000. A proposal is being evaluated to increase the unit selling price to $390. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. units
If fixed costs are $283,000, the unit selling price is $72, and the unit variable costs are $51, what are the old and new break-even sales in units (rounded to a whole number) if the unit selling price increases by $5? a.3,931 units and 13,476 units b.13,476 units and 3,931 units c.5,549 units and 10,385 units d.13,476 units and 10,885 units

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