ABX Inc. manufactures and sells compact disks. Price and cost data are as follows: Selling price per unit OMR 15 Variable cost per unit Annual fixed costs 30,000 Required: 1. What is ABX's break-even point in units? 2. What is the company's break-even point in sales dollars? many units would ABX have to sell in order to earn OMR 3. 25,000? How

ABX Inc. manufactures and sells compact disks. Price and cost data are as follows: Selling price per unit OMR 15 Variable cost per unit Annual fixed costs 30,000 Required: 1. What is ABX's break-even point in units? 2. What is the company's break-even point in sales dollars? many units would ABX have to sell in order to earn OMR 3. 25,000? How

Name: ABX Inc. manufactures and sells compact disks. Price and cost data ar
Uploaded: 2022-05-24T13:26:03.000Z
Channel: Bartleby
Description: ABX Inc. manufactures and sells compact disks. Price and cost data areas follows:Selling price per unitOMR 15Variable cost per unit7Annual fixed costs30,000Required:1. What is ABX's break-even point in units?2. What is the companys break-even point

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Blue, Inc. produces and sells a product that has a variable cost per unit of $6. The company's total fixed costs are $76,000. Blue is considering setting the sales price at $12 per unit. Approximately how many units does Blue need to sell to earn $2 net income per unit? O 17,667 O 17,850 16,000 O 19,000 None of the above
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
Halifax Products sells a product for $118. Variable costs per unit are $67, and monthly fixed costs are $168,300. a. What is the break-even point in units? Break-Even Point units b. How many units would need to be sold to earn a target profit of $102,000? Total Required Sales units c. Assuming they achieve the level of sales required in part b, what is the margin of safety in sales dollars? Margin of Safety
Sheffield Corp. wants to sell a sufficient quantity of products to earn a profit of $250000. If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $200000, how many units must be sold to earn income of $250000? 2250000 units 100000 units 225000 units 56250 units
Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $100 per unit and has a CM ratio of 40% The company's fixed expenses are $459,000 per year. The company plans to sell 12,000 knapsacks this year. Required: 1. What are the variable expenses per unit? Variable expenses per unit 2. Use the equation method for the following e. What is the break-even point in units and in sales dollars? Break-even point in units Break-even point in sales dollars b. What sales level in units and in sales dollars is required to earn an annual profit of $99,000? Sales in units Sales in dollars c. What sales level in units is required to earn an annual after-tax profit of $99,000 if the tax rate is 25%? Sales in units d. Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $5 per unit. What is the company's new break-even point in units and in sales dollars? (Do not round Intermediate calculations.…
2. Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The company’s monthly fixed expenses are $22,500. The following names are to be considered when completing this problem: Operating Income Variable Costs Sales Fixed Costs per Unit Selling Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Operating Loss What is the company’s break-even point in units? . Use commas as needed (i.e. 1,234). What is the company’s break-even point in dollars? . Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Using the names listed above, construct a contribution margin income statement for the month of September when they will sell 900 units. Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Maple Enterprises Contribution Margin Income Statement For the Month of September How many units will Maple need to sell in…
Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics: Sales price $ 12.00 per case Variable costs 5.50 per case Fixed costs 403,000 per year Assume that the company plans to sell 77,000 units annually. Consider requirements (b), (c), and (d) independently of each other. Required: What will be the operating profit? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? Note: Do not round intermediate calculations. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 10 percent? Note: Do not round intermediate calculations. Suppose that fixed costs for the year are 20 percent lower than projected and variable costs per unit are 20 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? Note: Do not round intermediate…
Tim Taylor has written a self improvement book that has the following cost characteristics: Selling Price $16.00 per book Variable cost per unit: Production $4.00 Selling & administrative 2.00 Fixed costs: Production $90,400 per year Selling & administrative 27,900 per year How many units must be sold to break-even? Round to two decimal places.
Wok of Fame, Inc., makes and sells woks at a price of $5.00 per unit. Variable cost is $3.00 per unit. The company's total fixed costs are $52,500. How much must total sales be if Wok of Fame wants to earn an operating income of $17,500? $100,000 $70,000 $175,000 $17,500 $26,250
Finch Corporation produces products that it sells for $20 each. Variable costs per unit are $5, and annual fixed costs are $318,000. Finch desires to earn a profit of $51,000. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. a. Break-even point in units a. Break-even point in dollars b. Sales volume in units b. Sales in dollars Prev 1 of 16 Next >
Breakeven analysis (LO 1) Scott Confectionery sells its Stack-o-Choc candy bar for $0.80. The variable cost per unit for the candy bar is $0.45; total fixed costs are $175,000. What is the contribution margin per unit and the contribution margin ratio for the Stack-o-Choc candy bar? How do I fine the breakeven point in units & sales dollars?
Lindon Company is the exclusive distributor for an automotive product. The product sells $40 per unit and has a CM ratio of 30%. The company's fixed expenses are $180,000 per year. Required: 1. What are the variable expenses per unit? 2. Using the equation method: a. What is the break-even point in units and sales dollars? b. What sales level in units and in sales dollars is required to earn an annual profit of $60,000? c. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4 per unit. What is the Company's new break-even point in units and in sales dollars? 3. Repeat (2) above using the unit contribution method.