Ava Co. sells custom jewelry for $200. The variable cost per jewel is $160. Ava has fixed operating costs of $4,000. What is Ava's operating breakeven quantity of sales, in units? A. 150 units B. 120 units C. 90 units D. 100 units

Ava Co. sells custom jewelry for $200. The variable cost per jewel is $160. Ava has fixed operating costs of $4,000. What is Ava's operating breakeven quantity of sales, in units? A. 150 units B. 120 units C. 90 units D. 100 units

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 62P

See similar textbooks

Related questions

Q: The Excellence Company sells two products: Product A and Product B with the following sales mix for…

A: The break-even point in units refers to the level of sales at which a company neither earns a profit…

Q: Gladstorm Enterprises sells a product for $48 per unit. The varlable cost is $32 per unit, while…

A: Break Even Point - Break Even Point is the point where company has recovered its cost which is fixed…

Q: If BEP in dollars is $730,000, and average sale per customer is $5, then what is the number of…

A: given that, BEP in dollars = $730000 Average sales per customer = $5 a number of customers required…

Q: Maruska Corporation has provided the following data concerning its only product Selling price…

A: The objective of this question is to calculate the margin of safety in dollars for Maruska…

Q: nkt.3 A company sells Yoohoo for $6 a can with unit sales of 10,000. If cost of goods is $40,000,…

A: The objective of the question is to calculate the total sales of the company.

Q: Mauro Products distributes a single product, a woven basket whose selling price is $11 per unit and…

A: The objective of the question is to calculate the break-even point in both unit sales and dollar…

Q: Coney Adventures Inc. sells one product for $5. The variable cost per item is $3, and the fixed…

A: A Break-even point is a situation where the company earns no profit and faces no loss.

Q: HEFIVD853 Corp. sells a single product. $15 $2.00 Selling price per unit Variable expense per unit…

A: CVP analysis is a decision-making tool it helps takes wise decisions and making strategies. It…

Q: of the bestselling items your f per unit is $11.59 and the carrying units each year. The fixed cost…

A: To find the order quantity that strikes a balance between keeping enough inventory to meet demand…

Q: White Lake Inc. produces and sells a single product. Data concerning that product appear below:…

A: 1. BREAK EVEN SALES : = (FIXED COST X SALES) / CONTRIBUTION PER UNIT 2. UNITS TO SELL TO ATTAIN…

Q: XYZ sari-sari store sells a case of soft drink at 360.00. The store's overhead expenses are 40% of…

A: The profit margin represents the net income earned from the operational activities. It shows…

Q: Cad Ltd has the following information relating to chocolates produced. Unit sales price Variable…

A: 1.Contribution per unit = Sales - Variable cost per unit2.Target profit = Total Contribution - Fixed…

Q: An automobile parts supplier sell Excel brand batteries to van dealers. The annual demand is…

A: Formula of EOQ is; EOQ=2×Annual demand×Ordering costHolding cost

Q: Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and…

A: Income statement is one of the financial statements that shows profitability, total revenue and…

Q: When Greenway, Inc. sells 48,300 units, Its total fixed cost is $159,390. What is its total fixed…

A: Note: Total fixed costs do not vary with the sales units. Total fixed costs remain the same…

Q: Hilton Inc. sells a product for $94 per unit. The variable cost is $63 per unit, while fixed costs…

A: Solution A- Break even point = Fixed cost /Contribution per unit =…

Q: Tel Systems manufactures 2 products TLA and BIT. TLA selling price is $20/unit and variable costs…

A: The objective of the question is to determine the optimal sales mix for Tel Systems, given the…

Q: Stephanie's Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,000,…

A: Sales - variable cost = Contribution Contribution - fixed cost = Operating income

Q: Finn Enterprises manufactures celling fans that normally sell for $90 each. There are 300 defective…

A: Normal selling price = $90 Net income/(Net loss) if defectives are sold as is = Revenue from sale of…

Q: Sparkle Jewelry sells 800 units resulting in $85,000 of sales revenue, $32,000 of variable costs.…

A: Operating income is the amount of money earned by an entity from its operations. It is computed by…

Q: A firm sell a single product for $6. Its variable cost per unit is $4 and fixed costs are $50.…

A: Desired revenue is calculated by the firm for making strategies. it is calculated on the basis of…

Q: penninsula hardware buys cabinet doors for $24 less 39%, 10% and 4%. the store's overhead expenses…

A: Regular selling price = cost + profit

Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Ava Co. sells custom jewelry for $200. The variable cost per jewel is $160. Ava has fixed operating costs of $4,000. What is Ava's operating breakeven quantity of sales, in units?

A. 150 units

B. 120 units

C. 90 units

D. 100 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, finance and related others by exploring similar questions and additional content below.

Similar questions

Please explain in detail
Gladstorm Enterprises sells a product for $48 per unit. The varlable cost is $32 per unit, while fxed costs are $10,560. Determine the following: Round your answers to the nearest whole number. a. Break-even point in sales units units b. Break-even point in sales units if the selling price Increased to $62 per unit units
Majid Corporation sells a product for $145 per unit. The product's current sales are 41,300 units and its break-even sales are 32,625 units. What is the margin of safety in dollars? Multiple Choice $3,736,965 $5,988,500 $4,730,625 $1,257,875
Homoward Hardware buys cat liter for $6 less 20% per bag. The store's overhead is 45% of cost and the owner requires a profit of 20% of cost (a) (b) (c) (d) (e) (7) For how much should the bags be sold? What is the amount of markup included in the selling price? What is the rate of markup based on selling price? What is the rate of markup based on cost? What is the break-even price? What operating profit or loss is made if a bag is sold for $7 509
Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $114 and of each door is $264. The variable cost of a window is $69.50 and of a door is $182.00. Fixed costs are $416,000. (Enter your "per unit" values in two decimal places.)
On-The-Go Merchandiser sells luxury carry-on travel bags for $1,200 each. The firm's fixed operating costs are $600,000 when 5,000 or fewer bags are produced, and its variable cost ratio is 80 percent (i.e., variable cost per unit is 80 percent of the selling price). What is On-The-Go's operating breakeven point? Group of answer choices A. 2,500 bags B. 6,000 bags C. 750 bags D. 500 bags E. 4,000 bags
One of the bestselling items your firm offers sells for $19.99 a unit. The variable cost per unit is $11.59 and the carrying cost per unit is $.58. You sell 10,415 of these units each year. The fixed cost to order this item is $65. What is the economic order quantity? O 1,080 units 1,773 units 1,946 units 1,528 units 1,314 units
Cad Ltd has the following information relating to chocolates produced. Unit sales price Variable cost per unit Sales mix $ Fixed costs Target profit O d. 25 000 O a. 21 500 O b. 27 750 Choc O c. 30 000 $5 $3 70% Wicked $4 $1 20% Vanilla Total $3 $1.50 How many units in total must be sold to earn the target profit? (Ignore taxes.) 10% $21 500 $32 250
Homeward Hardware buys cat litter for $6 less 20% per baq. The store's overhead is 45% of cost and the owner requires profit of 20% of cost. 1. For how much should the bags be sold? 2. What is the amount of markup included in the selling price? 3. What is the rate of markup based on selling price? 4. What is the rate of markup based on cost? 5. What is the break-even price? 6. What operating profit or loss is made if a bag is sold for $6?
Mia Enterprises sells a product for $90 per unit. The variable cost is $40 per unit, while fixed costs are $75,000. Determine the:a. Break-even point in sales units fill in the blank 1 of 2 unitsb. Determine the break-even point in sales units if the selling price increased to $100 per unit $ per unit fill in the blank 2 of 2 units
de Campbell Enterprises produces a product with fixed costs of $53,400 and variable cost of $2.50 per unit. The company desires to earn a $28,000 profit and believes it can sell 11,000 units of the product. Required a. Based on this information, determine the target sales price. Note: Round your answer to 2 decimal places. Target sales price per unit
Flower Depot, Inc. sells a single product for $13. Variable costs are $3 per unit and fixed costs total $100,000 at a volume level of 7,500 units. What dollar sales level would Flower Depot have to achieve to earn a target profit of $400,000? A. $550,000. B. $750,000. C. $450,000. D. $1,000,000. E. $650,000.