Alice's company has a machine that can produce a maximum of 2722 components annually. She sells each component for $65. The company's fixed costs are $35,120 per annum, and the variable costs are $25 per component. a) Calculate the number of components the company needs to sell per annum to break-even. components b) Calculate the break-even in dollars (round off to the nearest cent). $ c) Calculate the break-even as a percent of capacity (round off to the nearest percent). % d) If Alice produced and sold 1047 components in a year, what was the profit made or loss incurred? O profit loss e) If the company wants to make a profit of $69,000 per year, how many components does it need to sell? components
Alice's company has a machine that can produce a maximum of 2722 components annually. She sells each component for $65. The company's fixed costs are $35,120 per annum, and the variable costs are $25 per component. a) Calculate the number of components the company needs to sell per annum to break-even. components b) Calculate the break-even in dollars (round off to the nearest cent). $ c) Calculate the break-even as a percent of capacity (round off to the nearest percent). % d) If Alice produced and sold 1047 components in a year, what was the profit made or loss incurred? O profit loss e) If the company wants to make a profit of $69,000 per year, how many components does it need to sell? components
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 20E
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Alice's company has a machine that can produce a maximum of 2722 components annually.
She sells each component for $65. The company's fixed costs are $35,120 per annum, and the
variable costs are $25 per component.
a) Calculate the number of components the company needs to sell per annum to break-even.
components
b) Calculate the break-even in dollars (round off to the nearest cent). $
c) Calculate the break-even as a percent of capacity (round off to the nearest percent).
%
d) If Alice produced and sold 1047 components in a year, what was the profit made or loss
incurred?
O profit loss
e) if the company wants to make a profit of $69,000 per year, how many components does it
need to sell?
components
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