Assume that Corn Co. sold 7,300 units of Product A and 2,700 units of Product B during the past year. The unit contribution margins for Products A and B are$34 and $57, respectively. Corn has fixed costs of $304,000. The break-even point in sales units isDo not round intermediate calculations and round your final answer to nearest dollar.a. 6,048 unitsb. 11,340 unitsc. 7,560 unitsOd. 9,072 units

The computation of the break even point in units is shown below: Break even point in units is =…

Answered: Assume that Corn Co. sold 7,300 units…

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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Mauro Products distributes a single product, a woven basket whose selling price is $25 per unit and whose variable expense is $19 per unit. The company's monthly fixed expense is $ 15,600. Required: Calculate the company's break - even point in unit sales. Calculate the company's break - even point in dollar sales. Note: Do not round intermediate calculations. If the company's fixed expenses increase by $600, what would become the new break - even point in unit sales? In dollar sales? Note: Do not round intermediate calculations.
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For the past year, Cline Company had fixed costs of $6,552,000, a unit variable cost of $444, and a unit selling price of $600. For the coming year, no changes are expected in revenues and costs except that a new wage contract will increase variable costs by $6 per unit. a. Determine the break-even sales (in units) for the past year.fill in the blank 1 units b. Determine the break-even sales (in units) for the coming year.fill in the blank 2 units
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Drake Company produces a single product. Last year's income statement is as follows: Sales (25,000 units) $1,532,500 Less: Variable costs 1,027,500 Contribution margin $505,000 Less: Fixed costs 273,600 Operating income $231,400 Required: 1. Compute the break-even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar. Break-even units units Break-even dollars $ 2. What was the margin of safety in dollars for Drake Company last year? Round your final answer to the nearest whole dollar. 3. Suppose that Drake Company is considering an investment in new technology that will increase fixed costs by $216,600 per year, but will lower variable costs to 50 percent of sales. Units sold will remain unchanged. Prepare a budgeted income statement assuming Drake makes this…
Mauro Products distributes a single product, a woven basket whose selling price is $16 per unit and whose variable expense is $14 per unit. The company's monthly fixed expense is $4,600. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) 1. Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales 3. Break-even point in dollar sales 124 JUN 30 baskets baskets A
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Need step by step explanation.Mauro Products distributes a single product, a woven basket whose selling price is $14 per unit and whose variable expense is $12 per unit. The company’s monthly fixed expense is $4,600. Required: Calculate the company’s break-even point in unit sales. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.)

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