Homework Help is Here – Start Your Trial Now!
Business
Accounting
ames Jim Inc. produces the following three products: T-Shirts Hats Sweatshirts Selling price per unit $40 $16 $50 Less: Variable costs per unit - 28 - 12 - 30 Contribution per unit $12 $ 4 $20 Fixed costs are $77,000 per year. All sales: 50% of all sales in units are T-Shirts, 30% are Hats, and 20% are Sweatshirts. Required: Calculate the following values: SHOW ALL CALCULATIONS. ROUND EACH NUMBER TO TWO (2) DECIMAL PLACES. A. Break-even point in total units B. Number of T-shirts that will be sold at break-even C. Total sales in units to obtain a before-tax profit of $22,400

ames Jim Inc. produces the following three products: T-Shirts Hats Sweatshirts Selling price per unit $40 $16 $50 Less: Variable costs per unit - 28 - 12 - 30 Contribution per unit $12 $ 4 $20 Fixed costs are $77,000 per year. All sales: 50% of all sales in units are T-Shirts, 30% are Hats, and 20% are Sweatshirts. Required: Calculate the following values: SHOW ALL CALCULATIONS. ROUND EACH NUMBER TO TWO (2) DECIMAL PLACES. A. Break-even point in total units B. Number of T-shirts that will be sold at break-even C. Total sales in units to obtain a before-tax profit of $22,400

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%

ames Jim Inc. produces the following three products: T-Shirts Hats Sweatshirts Selling price per unit $40 $16 $50 Less: Variable costs per unit - 28 - 12 - 30 Contribution per unit $12 $ 4 $20 Fixed costs are $77,000 per year. All sales: 50% of all sales in units are T-Shirts, 30% are Hats, and 20% are Sweatshirts. Required: Calculate the following values: SHOW ALL CALCULATIONS. ROUND EACH NUMBER TO TWO (2) DECIMAL PLACES.

A. Break-even point in total units

B. Number of T-shirts that will be sold at break-even

C. Total sales in units to obtain a before-tax profit of $22,400

Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS