break-even point
Q: Marks Co. has a capacity of 100,000 units. They are currently producing and selling 90,000 units at…
A: The question is related to accepting an special order or not. In this case the price of special…
Q: Jaroni Inc. produces specialty quilts and blankets using a partly manual, partly automated…
A: Solution... Sales = $60,000 Variable cost = $10,200 Fixed cost = $14,940 Break even sales = ?…
Q: Swifty Corporation produces a product that requires 2.60 pounds of materials per unit. The allowance…
A: Under standard costing the cost will be estimated at the beginning based on past data on cost.Then…
Q: Bernard Tires sells tires to car dealerships for an average of $30 each. The variable cost of each…
A: Break Even Point = Fixed Cost/ ( Sales price - Variable Cost )
Q: Pete Corporation produces bags of peanuts. Its fixed cost is $17,300. Each bag sells for $2.62 with…
A: Contribution margin per unit = Selling price per unit - Variable cost per unitBreakeven point in…
Q: Blazer Chemical produces and sells an Ice-melting granular used on roadways and sidewalks in winter.…
A: By giving managers pertinent cost information for pricing, product mix selection, and capacity…
Q: DEF Electronics produces and sells printers. Each unit of printer requires materials worth RM120.…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 6.60…
A: Part 1: Answer:The price Corrientes would have to charge per unit on this special order to earn…
Q: A manufacturing shop has annual fixed expenses of P500,000,000 and variable costs of P1,400 per…
A: Break even in cost accounting refers to a point where total costs are equal to total revenue and…
Q: A company is calculating the relevant cost of the material to be used on a particular contract. The…
A: Relevant costs are expenses and revenues that affect a decision. They vary between alternatives and…
Q: The cost of producing a certain commodity consists of P45.00 per unit for labor and material cost…
A: Total Variable cost per unit = P45.00 + P15.50 = P60.50
Q: A company produces a product and sells 25000 units a month at a selling price of £38. Direct…
A: The break even sales are the sales where business earns no profit no loss during the period. The…
Q: Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 6.60…
A: CVP analysis, or cost-volume-profit analysis, is a management accounting technique used to analyze…
Q: Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 6.90…
A: Variable costs are those costs which changes along with change in activity level. Contribution…
Q: Topeka Company has a single product called Topek. The company normally produces and sells 80,000…
A: Selling Price Per Unit: It is the amount that one buyer pays to the seller for one unit of purchase.…
Q: Blazer Chemical produces and sells an ice-melting granular used on roadways and sidewalks in winter.…
A: Absorption costing income statement is the traditional method of representation of income statement.…
Q: Migliorise Inc., produces and sells a single product. The product sells for $300.00 per unit and its…
A: BREAKEVEN POINT OF SALES Breakeven point is a Point of Sales Where where total Revenue or Production…
Q: Breakmoming Corporation produces a product that requires 2.6 pournds of materials per unit. The…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Decision on Accepting Additional Business Brightstone Tire and Rubber Company has capacity to…
A: SPECIAL ORDER Untill There is any Information is Provided, There Shall be no additional Fixed…
Q: Yellow Ltd, a food manufacturer, is reviewing its operation for March 2021. The company produces…
A: Let's start with the, Material price variance It shows the variance between the standard rate at…
Q: he Mighty Music Company produces and sells a desktop speaker for $200. The company has the capacity…
A: If a company is faced with a special order and the selling price for the order is the same as the…
Q: Shalom Company sells its product for P30 per unit. Its direct material costs are P6 per unit and…
A: Break-even point is a concept in finance and accounting that refers to the level of sales at which a…
Q: Perry Industries has an annual plant capacity of 72,000 units; cument production is 59,000 units per…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Smith company produces golf discs which it normally sells to retailers for $7 each. The cost of…
A: Solution: For incremental analysis of special order, we should compare cost and revenues on…
Q: Assuming Mando Company has excess capacity, the effect on profits of accepting the order would be an…
A: Special order decision refers to all those decisions or situation of the management in which they…
Q: Country Jeans Co. has an annual plant capacity of 65,600 units, and current production is 46,300…
A: Revenue = No. of units x Selling price = 16,100 units x $26 each = $418,600 Variable manufacturing…
Q: Spartan Corporation, a U.S. company, manufactures green eyeshades for sale in t 110 100
A: The total earnings or revenue that a person, company, or other entity receives before any costs or…
Q: rthwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: morning view industries manufactures and sells a product for $100 per unit. the annual fixed costs…
A: Breakeven sales units are the quantity of units sold that leads to a net income of zero. This means…
Q: Sohar Manufacturing Company normally produces and sells 30,000 units of product (X) each month.…
A: Fixed overhead =150000 Fixed selling cost =30000 Total fixed cost =150000+30000=180000 Normal…
Q: A company sells one of its products for $13.80 per unit. Its fixed costs are $1,080.00 per month,…
A: The break even sales are calculated as fixed cost divided by contribution margin ratio. The net…
Q: Miller Company produces speakers for home stereo units. The speakers are sold to retail stores for…
A: Variable Cost -Any expense that fluctuates depending on the volume of output or the quantity of…
Q: Phyllis Limited produces a product called SOMUAH. The manufacture of this product requires raw…
A: Phyllis Limited produces a product called SOMUAH. The manufacture of this product requires raw…
Q: A food processing plant has fixed charges, overhead, and general expenses equal to $ 3,000,000 and…
A: The objective of the question is to calculate the breakeven production rate and the net profit at…
Q: Bang Inc has the following cost details: per kg. Material cost= 200 Direct labour= 40…
A: Valuation of Inventories are the accounting standards used for valuation of inventories in which the…
A glass company produces paperweights for export. The paperweights were sold at P125 each which
does not include shipping cost of P20 per paperweights. These paperweights are then marked-up in
Japan of P560 per paperweights. The workers in the factory are paid, on the average, the equivalent
of P420 per day and it is estimated that the average daily output per worker is 70 paperweights. The
cost of the material is estimated at P44 per paperweigh ts. The fixed cost for the operation is P6M a
year. The company operates 288 days a year.
1. What is the break-even point?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Product A is produced with the following costs: 1) Paper material P20 per unit 2) Plastic P15 per unit 3) Rubber P27000 per 12000 units. 4) Labor P4 per unit 5) Indirect material costs P2.5 per unit The company pays P60,000 for rent per month for factory. It depreciates a P300,000 vehicle used for delivery and a P210,000-machine used for manufacturing, both have a life of 5 years. a. How much should be the total overhead costs if in a month, 1000 units were produced? b. How much should be the direct material costs if in a month, 1,500 units were produced? c. How much is the total conversion cost if 3,000 units are produced? d.How much is the total product cost per unit if in a month of production 4,750 units were produced? e. How many units should be sold in a month to break even?Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured In a small plant that relies heavily on direct labor workers. Thus, varlable expenses are high, totaling $15.000 per ball, of which 60% Is direct labor cost Last year, the company sold 62.000 of these balls, with the following results: $ 1,558, 000 930, e00 Sales (62,889 balls) Variable expenses Contribution margin Fixed expenses 620,e00 426,000 $ 194, 000 Net operating income Required: 1. Compute (a) last year's CM ratio and the break-even polnt in balls, and (b) the degree of operating leverage at last year's sales level. 2 Due to an Increase in labor rates, the company estimates that next year's varlable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remalns constant at $25.00, what will be next year's CM ratio and the break-even polnt in balls? 3. Refer to the data in (2) above. If the expected change in…Brightstone Tire and Rubber Company has capacity to produce 153,000 tires. Brightstone presently produces and sells 117,000 tires for the North American market at a price of $91 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 18,000 tires for $75.15 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows: Direct materials $35 Direct labor 13 Factory overhead (60% variable) 21 Selling and administrative expenses (40% variable) 18 Total $87 Brightstone pays a selling commission equal to 5% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $5 per tire. In addition, Euro has made the order conditional on receiving European safety…
- Levi Strauss has some of its jeans stone-washed under a contract with independent U.S. Garment Corp. If U.S. Garment's operating cost per machine is $16,000 per year for years 1 and 2 and then it increases by $1000 per year through year 5, what is the equivalent uniform annual cost per machine (years 1-5) at an interest rate of 11% per year? The equivalent uniform annual cost per machine is $Kofi Abebrese runs a small industrial company that specialized in the production of high standardwindows for housing estates. A worker is paid GH¢0.9 per hour and can produce two window swith an hour. Each window uses a frame costing GH¢1 and incur a variable overheads of GH¢0.7.Each window sells for GH¢3. Currently, due to the economic condition, work is rather slack and three employees are occupied in carrying out extensive repairs to Kofi Abebrese's own house.Kofi owns a warehouse next to the factory, which had been used as a factory store, in the past. Itis now let out on a renewable annual lease of GH¢600.A new building company, Allied Consult, which specializes in the production of prefabricatedhouses has asked Kofi if he would be interested in accepting a contract for GH¢30,000 which willbe for a year initially, to produce molded internal building sections. Kofi estimates that, thecontract will take 13,200 hours of works, or the work of five men for a year, and that…Western Jeans Co. has an annual plant capacity of 2,000,000 units, and current production is 1,920,000 units. Monthly fixed costs are $400,000, and variable costs are $9 per unit. The present selling price is $15 per unit. On July 6 of the current year, the company received an offer from Childs Company for 50,000 units of the product at $13 each. Childs Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Western Jeans Co. Question Content Area a. Prepare a differential analysis dated July 6 on whether to reject (Alternative 1) or accept (Alternative 2) the Childs order. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential AnalysisReject (Alt. 1) or Accept (Alt. 2) OrderJuly 6 Line Item Description Reject Order(Alternative 1) Accept Order(Alternative 2) Differential Effects(Alternative 2) Revenues $Revenues…
- Guadalupe Olayo produces grandfather clocks. Each grandfather clock normally sells for $1,500. The following manufacturing cost information per clock is available: Direct materials are $200, labor is $600, variable overhead is $50, and fixed overhead is $40 (based on planned production for the year of 1,200 clocks). Commissions are 10% of selling price, and fixed selling and administrative costs are $70,000. Guadalupe’s tax rate is 25%. A European company has asked Guadalupe to accept a special order for 400 clocks. Due to some minor design changes, the material and labor costs for the special order clocks would increase by 25%. Another production run would have to be scheduled for the special order, since the clocks are different from the regular clocks, at a cost of $2,200. In addition, Guadalupe would have to hire a temporary clerk to process the ISO and export paperwork for shipping to Europe, at a cost of $600. Commissions will be paid at the rate of 5% of the special order…Beach Blanket Bonanza Corporation sells its popular mid-century beach towel for $18 per unit, and the standard cost card for the product shows the following costs: Direct material $1 Direct labor 2 Overhead (80% fixed) 7 Total $10 Beach Blanket Bonanza Corporation received a special order for 1,000 units of the beach towel. The only additional cost to Beach Blanket Bonanza would be foreign import taxes of $1 per unit. If Beach Blanket Bonanza is able to sell all of the current production domestically, what would be the minimum sales price that Beach Blanket Bonanza would consider for this special order? Group of answer choices $11.00 $19.00 $5.40 $18.00MERGE Inc. manufactures ZEN product from a process that yields a by-product called YAN. The by-product requires additional processing cost of Php 30,000.00. The by-product will require selling and administrative expenses total Php 20,000.00. It is MERGE's accounting policy to charge the joint costs to the main products only. Information concerning a batch produced during the year ended December 31,2020 follows: (a) Product Name: ZEN, units produced: 100,000, Market Value at Split Off: Php 50.00, Units sold: 60,000, (b) Product Name: YAN, units produced: 8,000, Market Value at Split Off: Php 10.00, Units sold: 8,000. The joint costs incurred up to split-off point are: Direct Materials Php 2,000,000, Direct Labor Php 800,000, Factory Overhead Php 200,000.00. The selling and administrative expense of MERGE Inc. for the year ended December 31, 2020 is Php 1,000,000.00 exclusive of that for the by-product. 3.What is the net income for year if the net revenue from by-product is presented as…
