Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 112,500 15 Contribution margin 187,500 $ 25 Fixed expenses 62,000 Net operating income $ 125,500 The unit sales to break-even is: Multiple Choice 1,938 units. 4,133 units. 5,133 units. 2,480 units.

Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 112,500 15 Contribution margin 187,500 $ 25 Fixed expenses 62,000 Net operating income $ 125,500 The unit sales to break-even is: Multiple Choice 1,938 units. 4,133 units. 5,133 units. 2,480 units.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: ABC Corp has the following information: Number of units: 3600 Sales Price per Unit $40 Variable…

A: Calculate the contribution margin per unit. Calculate the contribution margin ratio.

Q: Complete the Table Total Total Unit Selling Total Fixed Variable Variable Price Revenue of Costs…

A: Unit Contribution Margin=Selling Price-Unit Variable Cost Contribution Rate=Unit Contribution…

Q: If fixed costs are $255,000, the unit selling price is $33, and the unit variable costs are $15, the…

A: Breakeven sales revenue is that level of sales revenue at which the business is only recovering its…

Q: ermine the missing amounts. Unit Selling Price $900 $500 $ (e) $ LA Unit Variable Costs $432 (c) (f)…

A: Contribution Margin -The amount of sales revenue from a product that isn't consumed by variable…

Q: Solve for the missing amounts for the following separate cases. Case 1 2 3 4 Sales price per unit $…

A: Break Even Point in Units = Total Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)

Q: Need Help please provide Solutions

A: Hello student! We can determine the Variable Expense per unit by referring to our Contribution…

Q: If fixed costs are $287,000, the unit selling price is $31, and the unit variable costs are $21, the…

A: At break-even sales units, there is no profit or loss to the entity. It is a level of sales where…

Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…

A: Cost volume profit analysis is the technique used by management for decision making. The methods…

Q: Use the following information to determine the break-even point in units: Unit sales Unit selling…

A: Lets understand the basics.Break even point is a point at which no profit no loss condition arise.…

Q: Assume the following: 1. selling price per unit = $25 2. variable expense per unit = $13 3. the…

A: Unit sales relate to the total volume of units of a product or service that a company sells within…

Q: Calculate the number of units that must be sold in order to realize an operating income of $153,000…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

Q: If fixed costs are $285,000, the unit selling price is $34, and the unit variable costs are $16, the…

A: Break even sales in units = Fixed cost/Contribution margin per unit

Q: Contribution Margin Ferrante Company sells 27,000 units at $25 per unit. Variable costs are $16.00…

A: Answer a) Calculation of Contribution Margin ratio Contribution margin ratio = Contribution margin…

Q: Use the income statement below to answer the following questions. BASIC TRAVEL Contribution…

A: Formulas: Break even point = Fixed costs /Contribution margin per unit where, Contribution margin…

Q: Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin…

A: Lets understand the basics.contribution margin per unit is a sale per unit less variable cost per…

Q: prepare a contribution income statement with the following: Selling Price Per Unit $45 Variable…

A: Contribution margin income statement: A contribution margin income statement is an income statement…

Q: Using the following information, what would variable cost per unit be at 8,000 units? 2,000 3,000…

A: Total variable cost is the cost which varies with the change in the production volume. If the…

Q: A company provided the following data: Selling price per unit $80 Variable cost per unit $45 Total…

A: The number of units required to earn a profit can be calculated as sum total fixed costs and profit…

Q: If fixed costs are $266,000, the unit selling price is $29, and the unit variable costs are $20, the…

A: Break Even Point is that point of sales, where all the expenses (Fixed and variable) are recovered…

Q: From the following particulars: Sales $ 120,000 Variable Cost…

A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…

Q: Baker Company's target operating income for Product Blue is $50,000. Fixed costs are $17,300 and…

A: Required sales to achieve target income are covered under the cost volume profit analysis method. It…

Q: Contribution Margin Harry Company sells 19,000 units at $30 per unit. Variable costs are $22.20 per…

A: Contribution margin ratio - It is a ratio that shows the sum of the amount available to cover fixed…

Q: Contribution Margin Ferrante Company sells 31,000 units at $18 per unit. Variable costs are $10.62…

A: Contribution Margin is difference between sales value and variable cost. It can also be defined as…

Q: Please I want answer

A: Step 1:Contribution per unit= Sales price per unit - variable cost per unit Contribution margin…

Q: For Bramble Corp. at a sales volume of 4000 units, sales revenue is $71000, variable costs total…

A: The contribution margin is the difference between the sales and the variable cost. The contribution…

Q: Use the following information to determine the break-even point in sales dollars: Unit sales 49,200…

A: Break-even point in the sales dollars states the level of production or the aggregate units…

Q: Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses…

A: Net operating income=Sales-Variable expenses+Fixed expenses

Q: Contribution Margin Sally Company sells 37,000 units at $16 per unit. Variable costs are $10.40 per…

A: (a) contribution margin ratio = unit contribution margin / selling price per unit unit…

Q: Contribution Margin Sally Company sells 15,000 units at $24 per unit. Variable costs are $20.40 per…

A: Contribution margin ratio = (Contribution Margin per unit/ Selling Price per unit) Contribution…

Q: If fixed costs are $299,000, the unit selling price is $35, and the unit variable costs are $16, the…

A: The right answer is a . 13,337 units

Q: If fixed costs are $287,000, the unit selling price is $33, and the unit variable costs are $15, the…

A: Break-even point is the number of units position where the company is making no profit no loss.…

Q: Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $85 per…

A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…

Q: $ $ $ 2$ Price/unit 14 Variable cost/unit Total fixed cost 4 400,000 500,000 Target profit Calculate…

A: To calculate the target profit revenues, following formula should be used: Target Profit…

Q: Connor Company has fixed costs of $400,000, the unit selling price is $25, and the unit variable…

A: Break-even sales refer to the level of sales at which a company's revenue exactly equals its total…

Q: A Sale price per unit $4 1,900 Variable costs per unit 1,425 3,750 Total fixed costs 209,000 675,000…

A: Contribution margin is calculated as difference between sales price and variable expenses. Further,…

Q: In Total Volume = 6,000 units Sales 930,000 Less variable expenses 480,000 Contribution margin…

A: Formula: Margin of safety units = Current sales units - Break even sales units Deduction of Break…

Q: If fixed costs are $272,000, the unit selling price is $122, and the unit variable costs are $71,…

A: Break-even sales (units) = Fixed costs/Contribution margin per unit

Question

Assume the following information:

	Amount		Per Unit
Sales	$	300,000		$	40
Variable expenses		112,500			15
Contribution margin		187,500		$	25
Fixed expenses		62,000
Net operating income	$	125,500

The unit sales to break-even is:

Multiple Choice

1,938 units.
4,133 units.
5,133 units.
2,480 units.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Assume that more than one product is being sold in each of the four following case situations: Case #1 Case #2 Case #3 Case #4 Sales $ 443,000 203,000 292,000 Variable expenses 140,070 84,680 Fixed expenses 52,000 470,000 Net operating income (loss) $ 82,350 $ 10,930 90,000 $ (18,680) Contribution margin ratio (percent) 45 % % 80 %
Contribution Margin United Merchants Company sells 34,000 units at $12 per unit. Variable costs are $6.72 per unit, and fixed costs are $100,500. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) fill in the blank 1 % b. Unit contribution margin (Round to the nearest cent.) $fill in the blank 2 per unit c. Income from operations $fill in the blank 3
Graham Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (1,000 units) Variable expenses Contribution margin Fixed expenses Net operating income O 0 units O 895 units The break-even point in unit sales is closest to: (Round your intermediate calculations to 2 decimal places.) 700 units $ 50,000 O 650 units 32,500 17,500 12,250 $ 5,250
Lorri’s income statement is as follows: Sales* $60,000 Less variable costs (19,200) Contribution margin $40,800 Less fixed costs (9,600) Net income $31,200 * 5,000 units sold What is the unit contribution margin?
Dakota Company provides the following information about its single product Target operating income $40,000 Selling price per unit $3.50 Variable cost per unit $1.05 Total fixed costs $90,000 What is the break-even point in units?
Compute the missing amounts for the following table: Compute the missing amounts. ( Enter the contribution margin ratio to the nearest percent, X%)
Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 111,000 Net operating income $ 69,000 If the selling price per unit increases by 10% and unit sales drop by 5%, then the best of estimate of the new net operating income is: Multiple Choice $77,400. $82,200. $153,200. $88,500.
< Contribution Margin Harry Company sells 24,000 units at $26 per unit. Variable costs are $17.16 per unit, and fixed costs are $72,100. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. a. Contribution margin ratio (Enter as a whole number.) b. Unit contribution margin (Round to the nearest cent.) c. Operating income A LA % per unit D
You are provided with the following data. I Unit sales 5 Selling price per unit 5 7 8 Variable expenses per unit Fixed expenses Target Profit 9 10 Required: 11 12 13 Contribution margin per unit 14 15 CM ratio 16 Variable expense ratio 17 18 Compute the break-even. 19 20 Break-even in unit sales $ Dagate ssss is $ 80,000 units 70 per unit 28 per unit Compute the CM ratio and variable expense ratio. $ 2,688,000 $ 1,610,000
Assume the following (1) variable expenses = $302,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 20%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? Multiple Choice O O The variable expense ratio is 400% The total sales $377,500 The total contribution margin= $241,600 The total fixed expenses $60,400 =
Consider the following: Fixed expenses P78,000 Unit contribution margin 12 Target net profit 42,000 How many unit sales are required to earn the target net profit?
Determine the missing amounts Unit Selling Price$250 $500 (e)Unit Variable Costs$180 (c) (f)Unit Contribution Margin(a) $200 $330Contribution Margin Ratio(b) (d) 30%