Bradley Components produces a single product for sale. The part sells for $18.75 per unit. Fixed costs are $1,750,000 annually. Production and sales of 720,000 units annually result in a profit before taxes of $2,800,000. What is the unit variable cost?

Bradley Components produces a single product for sale. The part sells for $18.75 per unit. Fixed costs are $1,750,000 annually. Production and sales of 720,000 units annually result in a profit before taxes of $2,800,000. What is the unit variable cost?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

See similar textbooks

Related questions

Q: Jordy Enterprises sells a product for $75 per unit. Variable costs per unit are $40, and monthly…

A: Explanation of Contribution Margin: Contribution margin represents the portion of each sales dollar…

Q: General accounting

A: Step 1: Definition of Stockholders' EquityStockholders' Equity represents the residual interest in a…

Q: This nets out to a

A: To determine the net capital gain or loss, we subtract the net short-term capital loss from the net…

Q: Accounting problem

A: Step 1: Definition of Direct Write-off Method & Allowance MethodConcept of Direct Write-off…

Q: None

A: To calculate the annualized rate of return on Capital Funding's investment, follow these steps:Step…

Q: answer ? Financial Accounting

A: Step 1: Given Value for Calculation Initial Investment = i = $320,000Final Amount = f = $335,000time…

Q: Riverstone Publishers Inc. collects 80% of its sales on account in the month of the sale and 20% in…

A: Explanation of Sales on Account: Sales on account represent transactions where customers purchase…

Q: What's the solution for this financial accounting problem

A: Step 1: DefinitionsDefinition of Fixed Asset Turnover RatioThe fixed asset turnover ratio measures…

Q: General accounting

A: Step 1: Define EPS and P/E RatioEarnings Per Share (EPS) represents the portion of a company's…

Q: What was Bright Growth Fund's turnover of this financial accounting question?

A: Given Data:Average Daily Total Assets = $120 millionStock Purchases = $25 million (not needed for…

Q: which one is correct option?

A: To determine the highest price McMurphy should be willing to pay, calculate the "relevant costs" -…

Q: A toy company applies overhead based on machine hours. It takes 4 machine hours to produce a large…

A: Step 1: Definition of Job Order CostingJob Order Costing is a cost accounting system that assigns…

Q: I'm waiting for answer

A: Given Data:Net Sales: $4,500,000Beginning Total Assets: $1,900,000Asset Turnover Ratio: 3.0…

Q: Solve this problem

A: Given data:Total tax revenue collected = $1.8 billionTotal spending on public services = $2.1…

Q: Help

A: Explanation of Cash Proceeds from Sale:The cash proceeds from sale refer to the actual amount of…

Q: I need help with accounting question

A: SolutionThe capital gains yield is calculated using the formula:Capital Gains Yield = (Selling Price…

Q: Baker's Market began the current month with inventory costing $35,250, then purchased additional…

A: Explanation with more details: Determining Inventory ShrinkageInventory shrinkage refers to the loss…

Q: Need help with this financial accounting question please answer

A: Step 1: Definition of Gross ProfitGross profit is the revenue remaining after deducting the cost of…

Q: An asset's book value is $19,000 on December 31, Year 5. The asset has been depreciated at an annual…

A: Gain/(Loss) on sale = Proceeds from sale of asset - Asset's book valueGain/(Loss) on sale = 16,000 -…

Q: General accounting

A: To determine the Price-Earnings (P/E) ratio, we use the following formula:P/E=r−g1−bwhere:b =…

Q: Anderson Inc. has decided to use the high-low method to estimate total costs and determine the fixed…

A: Step 1: Definition of High-Low MethodThe high-low method is a technique used to separate fixed and…

Q: what is correct answer?

A: To determine the profit (or loss) from processing cocoa butter into refined cocoa butter, we use the…

Q: Harrison Manufacturing had a beginning work in process inventory balance of $40,500. During the…

A: Step 1: Definition of Work in Process (WIP) InventoryWork in Process (WIP) Inventory refers to…

Q: I need help

A: Step 1: Recall the asset turnover ratio formula.= net sales / average total assets Step 2: Determine…

Q: Please given answer accounting question

A: Step 1: Definition of Predetermined Overhead RateThe Predetermined Overhead Rate is an estimated…

Q: Radiant Motors has sales of $5,250, totalassets of $3,900, and a profit margin of 6 percent. The…

A: ROE=Shareholders' Equity ÷ Net Income Step 1: Calculate Net IncomeNet income is determined using…

Q: Required: Management has requested that you do the following: a. Prepare a traditional income…

A: Preparation of activity based income statementLozier Catering and Eventsactivity based income…

Q: 8. The storekeeper at Bandit Hotel performed the weekly housekeeping supply count. Records indicated…

A: Step 1: Definitions Related to the QuestionDefinition of Inventory VarianceInventory variance refers…

Q: Please give answer the financial accounting question

A: Step 1: Define Cash DisbursementCash disbursement refers to the actual payment of cash for…

Q: Poppy's cost of goods sold for this year was?

A: Explanation of Periodic Inventory System: A periodic inventory system is an inventory accounting…

Q: Please need answer the financial accounting question not use ai and chatgpt

A: Step 1: Define Operating Cash Flow (OCF)Operating Cash Flow (OCF) is the amount of cash generated by…

Q: ?

A: Given Data:Purchase Price: $150Dividend Received: $12Expected Price After One Year: $1851. Total…

Q: Determine the predetermined overhead rate

A: Explanation of Predetermined Overhead Rate:The Predetermined Overhead Rate (POHR) is an estimated…

Q: Solve this financial accounting issue

A: Step 1: Define Straight-Line DepreciationStraight-line depreciation is a method of allocating the…

Q: Precision Tools Inc. has the following information related to its direct materials usage: Standard…

A: Step 1: Definition of Materials Price and Usage VarianceMaterials Price Variance (MPV):Materials…

Q: what is correct answer?

A: Step 1: Calculate Tax Liability for Joint FilingIn 2013, the tax brackets for Married Filing Jointly…

Q: Using the following balance sheet and income statement data, what is the total amount of working…

A: Working capital is a financial metric which represents operating liquidity available to a business.…

Q: Financial accounting

A: Step 1: Define Price Estimation Using ComparablesThe Method of Comparables estimates a stock's price…

Q: Answer this general Accounting Question

A: Concept of Budget DeficitA Budget Deficit occurs when a government spends more money than it…

Q: Frick Company uses a job order cost system and applies overhead based on estimated rates. The…

A: To determine the correct answer, follow these steps: Calculate the Overhead Application Rate:The…

Q: Bradford Enterprises sells two products, blue pens and green notebooks. Bradford predicts that it…

A: To ascertain the weighted average unit contribution margin for Bradford Enterprises, we computed the…

Q: What is the cost of trevino Apparel company's direct labor in

A: Concept of Direct Labor CostThe Direct Labor Cost refers to the total wages paid to employees who…

Q: Financial Accounting Question

A: Step 1: Calculation of annual allowanceAnnual allowance = Monthly allowance × 12Annual allowance =…

Q: Calculate the total fixed expense for the year

A: Explanation of Direct Materials: Direct materials are the primary physical components that become…

Q: Ans plz

A: Step 1: Definition of Direct Labor Efficiency VarianceThe Direct Labor Efficiency Variance (DLEV)…

Q: Need help with this question solution general accounting

A: Step 1 : Definition of Net Realizable Value (NRV) of Accounts ReceivableNet realizable value (NRV)…

Q: What is A & B?

A: Step 1. Compute Absorption Cost per UnitUnder absorption costing, each unit's cost includes:Direct…

Q: General accounting

A: Step 1: Definition of Required CapitalThe required capital is the total amount of funds a company…

Q: Provide accounting question and correct solution

A: Step 1: Definition of Return on Assets (ROA) and Asset TurnoverReturn on Assets (ROA) measures how…

Q: Standard cost per unit is calculated as: A. standard rate per hour multiplied by standard time. B.…

A: The correct answer is: B. Standard price multiplied by standard quantity. Explanation: Standard cost…

Question

What is the unit variable cost of the general accounting question?

Bradley Components produces a single product for sale. The part sells
for $18.75 per unit. Fixed costs are $1,750,000 annually. Production
and sales of 720,000 units annually result in a profit before taxes of
$2,800,000.
What is the unit variable cost?

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
Suppose that a company has fixed costs of $18 per unit and variable costs $9 per unit when 15,000 units are produced. What are the fixed costs per unit when 12,000 units are produced?
Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.
Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
Abilene Industries manufactures and sells three products (XX, W, and ZZ). The sales price and unit variable cost for the three products are as follows: Their sales mix is reflected as a ratio of 4:2:1. Annual fixed costs shared by the three products are $345.000 per year. What are total variable costs for Abilene with their current product mix? Calculate the number of units of each product that will need to be sold in order for Abilene to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.
Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Their sales mix s reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $25,000 per year. What are total variable costs for Morris with their current product mix? Calculate the number of units of each product that will need to be sold in order for Morris to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.
Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000
What is the unit variable cost?
What is the unit variable cost ?
KN Enterprises produces a single part for sale. The part sells for $19 per unit. Fixed costs are $1,420,000 annually. Production and sales of 640,000 units annually result in profit before taxes of $2,350,000. What is the unit variable cost? Provide answer
Dove, Inc. produces a product that has a variable cost of $6.00 per unit. The company's fixed costs are $60,000. The product is sold for $9.00 per unit and the company desires to earn a target profit of $30,000. What is the amount of sales that will be necessary to earn the desired profit?