Need help with this question solution general accounting ABC Manufacturing produces three products: Alpha, Beta, andGamma. For every unit of Alpha produced, the company produceshalf as many units of Beta and twice as many units of Gamma. Thecontribution margins are $2.00 per unit of Alpha, $4.00 per unit ofBeta, and $1.00 per unit of Gamma. Fixed costs are $800,000. Howmany units of Alpha would ABC sell at the breakeven point?

To calculate the breakeven point in units of Alpha, we'll follow these steps:1. Relationships…

Answered: ABC Manufacturing produces three…

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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Jasmine Incorporated sells a product for $61 per unit. Variable costs per unit are $31, and monthly fixed costs are $252,000. Answer the following questions: Required: a. What is the breakeven point in units? b. What unit sales would be required to earn a target profit of $162,000 ? c. Assuming Jasmine achieves the level of sales required in part b, what is the margin of safety in sales dollars?
COVID 19 Corp. sells two products. Product A sells for $200 per unit, and has unit variable costs of $150. Product B sells for $50 per unit, and has unit variable costs of $20. Currently, COVID 19 Corp. sells three units of Product B and two units of Product A. COVID 19 Corp. has fixed costs of $760,000. What is COVID 19 Corp's break- even point in units? Select one: a. 8,000 units of A and 12,000 units of B b. 20,000 units of A and 20,000 units of B c. 10,000 units of A and 10,000 units of d. 12,000 units of A and 8,000 units of В
Shapland Inc. has fixed operating costs of $500,000 and variable costs of $50per unit. If it sells the product for $75 per unit, what is the break-even quantity?
Mayfield Company sells two products, Blue models and Plaid models. Blue models sell for $44 per unit with variable costs of $35 per unit. Plaid models sell for $55 per unit with variable costs of $40 per unit. Total fixed costs for the company are $12,000. Mayfield Company typically sells four Blue models for every three Plaid models. What is the breakeven point in total units? (Round any intermediary calculations to the nearest whole number.) O A. 148 units O B. 1,714 units O C. 1,000 units O D. 267 units
MicroCam produces a single product. Variable cost per unit is $25, and fixed costs are $95,000 per year. If the firm sells 5,000 units per year, what price should be charged for each unit to earn $35,000?
Parker Co. can further process Product J to produce Product D. Product J is currently selling for $21 per pound and costs $15.75 per pound to produce. Product D would sell for $35 per pound and would require an additional cost of $8.75 per pound to produce. What is the net differential income of producing Product D? $7 per pound $8.75 per pound $15 per pound $5.25 per pound
Recline Company is planning to produce and sell 11,250 units of its only product at a unit price of $106. At this sales level Recline Company will generate $405,000 in total contribution margin and incur fixed costs of $25/unit. a. Calculate Recline’s contribution margin ratio. Round answer to the nearest whole percentage (ex: 0.3456 = 35%) b. Calculate the break-even point in sales dollars for Recline. Use your rounded answer from part a. above and then round final answer to the nearest dollar.
Friar Corp. sells two products. Product A sells for $112 per unit, and has unit variable costs of $65. Product B sells for $102 per unit, and has unit variable costs of $59. Currently, Friar sells three units of Product B for every one unit of Product A sold. Friar has fixed costs of $752,400. How many units would Friar have to sell to earn a profit of $250,800?
Locus Company has total fixed costs of $115,000. Its product sells for $43 per unit and variable costs amount to $23 per unit. Next year Locus Company wishes to earn a pretax income that equals 10% of fixed costs. How many units must be sold to achieve this target income level? Multiple Choice ) 6,325. 5,750. 8,249. 20,163. 575.
Angel Corporation produce calculators selling for $25.99. Its unit cost is $18.95 Assuming a fixed cost of $80,960, what is the breakeven point in units?
Clockmaker Ltd. makes a product called wallet. Managers from Clockmaker Ltd. want to achieve a profit of £82, 800. The wallet price equals £82 per unit. Each unit of wallet has a cost of £36 and annual total fixed costs equal £147, 200. Considering this information, which of the following statements is true? O a. To achieve the desired profit, Clockmaker Ltd. needs to sell 5, 000 units of wallet. O b. Clockmaker Ltd. would need to sell more than 3, 200 units of wallet to have positive profits. O c. Contribution per unit equals £46. O d. All the answers are true.
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)

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