&J Ltd produces a specialist pencil, which is sold for £50. The variable costs to produce one pencil are £10 and fixed production overheads are £25,000. How many pencils must G&J Ltd sell to break even? a) 625 pencils b) None of the above c) 500 pencils d) 417 pencils

&J Ltd produces a specialist pencil, which is sold for £50. The variable costs to produce one pencil are £10 and fixed production overheads are £25,000. How many pencils must G&J Ltd sell to break even? a) 625 pencils b) None of the above c) 500 pencils d) 417 pencils

Name: G&J Ltd produces a specialist pencil, which is sold for £50. The varia
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Description: G&J Ltd produces a specialist pencil, which is sold for £50. The variable costs to produce one pencil are £10 and fixed production overheads are £25,000.How many pencils must G&J Ltd sell to break even?a) 625 pencilsb) None of the abovec) 500 pencils

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Miller Company produces speakers for home stereo units. The speakers are sold to retail stores for £30. Variable costs per unit are: Direct materials £9.00; Direct labour 4.50; Distribution 1.50 and Variable Factory overhead 3.00. Fixed costs per month are: Factory overhead £120,000 and Selling and admin. 60,000. The variable distribution costs are for transportation to the retail stores. The current production and sales volume is 20,000 per year. Capacity is 25,000 units per year. An Atlanta wholesaler has proposed to place a special one-time order for 7,000 units at a special price of £25.20 per unit. The wholesaler would pay all distribution costs, but there would be additional fixed selling and administrative costs of £6,000. In addition, assume that overtime production is not possible and that allother information remains the same as the original data. The effect on profits if the special order is accepted is Select one: a. cannot be determined b. £30,900 decrease c. £50,100…
ABC Company sells a single product at a price of $250 per unit. Direct material is $45, direct labor is $55, variable manufacturing overhead costs is $20 per unit, and variable selling costs are $30 per unit. If ABC fixed costs are $290,000, the break-even point in sales dollars will be? O a. $580,000. O b. $290,000. O c. $2,000. O d. none of the these is correct. O e. $725,000.
Simpkins Ltd is currently experiencing a shortage of skilled labour. In the coming quarter only 3,600 hours will be available for the production of the firm's three products for which details are shown below: Product X Y Selling price per unit Variable cost per unit Fixed cost per unit Skilled labour per unit £66 £100 £120 £42 £75 £90 £30 £34 £40 0.40 hours 0.50 hours 0.75 hours Maximum quarterly demand 5,000 5,000 2,000 The optimum production plan that will maximise profit for the quarter is: 0 X's (A) (В) (C) (D) 2,200 Y's and 5,000 X's 5,000 X's 3,200 Y's 9,000 X's 2,000 Z's 2,000 Z's 0 Z's 0 Z's 200 Y's and and O Y's and
TLF Ltd wishes to sell 28,000 units of its product, which has a variable cost of £30 to make and sell. Fixed costs are £94,000 and required profit is £26,000. Required Calculate the sales price per unit
Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The company's monthly fixed expenses are $72,000. A. What is the company's break-even point in units? B. What is the company's break-even point in dollars?
At present the selling price of the product is £5.75 and it incurs the following variable costs: The fixed costs of production are £180,000 and the company currently sells 90,000 units. Direct Labour £1.35 Direct Materials £1.75 Other Direct costs £0.40 Discuss the limitations of break-even analysis.
The Asian Transmission Co. produces certain items at a labor cost of P 115 each, material cost of P 76 each and variable cost of P 9 each. If the item has a unit price of P 600, how many units must be manufactured each month for the manufacturer to break even if the monthly overhead is P428,000
Brecht Ltd produces a standard product which is sold for £85 each. The business incurred variable costs of £550,000 last year and total costs were £850,000. The business sold 11,000 units during the year and was operating at full capacity. The business intends to expand its output. This will involve building a factory extension, which will increase annual fixed costs by £120,000 per year. 1. Calculate the number of products that need to be sold in order for the business to break even, after the new factory extension has been built. 2. Calculate the profit (loss) that would be generated if the business sold 10,000 units (i) before the factory extension is built. (ii) after the factory extension is built.
Racer Industries has fixed costs of $900,000. The selling price per unit is $250, and the variable cost per unit is $130. Required: a. How many units must Racer sell in order to break even? units b. How many units must Racer sell in order to earn a profit of $480,000? units c. A new e Accounting numeric field dustries sponsor a 10K marathon as a form of advertising. The cost to sponsor the event is $7,200. How many more units must be sold to cover this cost? units
Company A manufactures two products A and B that sells for 120 € and 80 € respectively. Each product uses only one type of raw materials that costs € 6 per kilogram. The company has the capacity to annually produce 100,000 units of each product. The company considers its traceable fixed mahufacturing overhead to be avoidable and its common fixed expenses are unavoidable and have been allocated to products based on sales in euros. The Company's average cost per unit for each product at the annual level of activity is provided in the table. Items Product costs in euro A B Direct materials 30 12 Direct labor 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total costs per unit 100 68 (Answer each question independently unless instructed otherwise) Calculate what is the company's total amount of common fixed expenses.
An annual fixed operating cost of P10,000,000 is incurred by a Auto Devices Manufacturing Company. Each device costs P1,375 to create and sells for P4,500. What is the annual break-even sales units for the manufacturer?
A CERTAIN PRODUCT SELLS FOR $55. IT HAS VARIABLE COSTS OF $33 PER UNIT AND FIXED COSTS OF $300,000 PER YEAR. HOW MANY THE PRODUCTS MUST COMPANY MANUFACTURE TO BREAK EVEN?

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