Break-Even Sales and Cost-Volume-Profit ChartFor the coming year, Cleves Company anticipates a unit selling price of $106, a unit variable cost of $53, and fixed costs of$530,000.Required:1. Compute the anticipated break-even sales (units).fill in the blank 1 units2. Compute the sales (units) required to realize a target profit of $227,900.fill in the blank 2 units3. Construct a cost-volume-profit chart, assuming maximum sales of 20,000 units within the relevant range. From yourchart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even.$1,484,000$1,325,000$1,060,000$795,000$636,0004. Determine the probable income (loss) from operations if sales total 16,000 units. If required, use the minus sign toindicate a loss.Sfill in the blank

Break even point = It is the level of sales wherein the company have no profit no loss. below the…

Answered: Break-Even Sales and Cost-Volume-Profit…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Break-even sales Currently, the unit selling price of a product is $270, the unit variable cost is $220, and the total fixed costs are $520,000. A proposal is being evaluated to increase the unit selling price to $300. a. Compute the current break-even sales (units).fill in the blank 1 of 1 units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.fill in the blank 1 of 1 units
v.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Lo... Break-Even Sales and Sales to Realize a Target Profit For the current year ending October 31, Papadakis Company expects fixed costs of $422,400, a unit variable cost of $46, and a unit selling price of $68. a. Compute the anticipated break-even sales (units). units. b. Compute the sales (units) required to realize a target profit of $96,800. units Check My Work Previous 6 Next Oct 26 6:18
Break-Even Sales Currently, the unit selling price of a product is $220, the unit variable cost is $180, and the total fixed costs are $288,000. A proposal is being evaluated to increase the unit selling price to $240. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. units
Current Attempt in Progress Blossom Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $210,000; and fixed costs $70,000. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase unit selling price by 10% with no change in total variable costs or sales volume. O Net income $ 2. Reduce variable costs to 55% of sales. Net income $ 3. Reduce fixed costs by $18,000. Net income $ Which course of action will produce the highest net income? Bave for Later 100 2 Attempts: 0 of 1 used Submit Answer
Assume the following information: Selling price Variable expense ratio Fixed expenses Unit sales Multiple Choice O O How many units need to be sold to achieve a target profit of $16,900? 4,150 units 1,019 units 2,817 units Amount 6,220 units $30 80% $ 8,000 per month 3,400 per month
Breakeven analysis and target profit, taxes, what - if analysis Pome Company produces a single product: the Core. The following table provides the Core's details: Per unlt Sellingprice 10% of selling price For the upcoming 7 Labor cost. 6 Variable overhead cost. . . . . 2 Sales commissions.. .$30 Materials cost year, Pome Company expects to sell 500,000 units of the Core, have total fixed costs of $4,500,000, and face a tax rate of 30% of income. Required (a) At the expected level of unit sales, what is the after - tax income? (b)What is the breakeven unit sales of the Core? (c) The marketing manager believes that if the Core's price is cut by $2 unit, sales will increase by 10% . Is this change desirable from a financial perspective? (d)Ignore part (c) when answering this question. The production manager believes that if Pome Company rents a new machine, total manufacturing variable costs ( materials, labor, and overhead) per unit will each drop by 10% . What is the annual rent for…
Multiproduct breakeven analysis and target profit, taxes Pursuit Company produces two products: Bric and Brac. The following table summarizes the products' details and planned unit sales for the upcoming period: Bric BrAc Sellingpriceperunt...........$S25$30 Variablecostperunit ... $14$17 Planned unit sales volume . . . . . . 800, 000 400,000 Pursuit Company has total fixed costs of $10 million and faces a tax rate of 30%. Required (a)What is Pursuit Company's expected profit at the planned level of sales? (b)Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to break even? (c) Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to earn an after-tax income of $910, 000 ?
Break-even sales and sales to realize operating income For the current year ended March 31, Cosgrove Company expects fixed costs of $462,000, a unit variable cost of $58, and a unit selling price of $86. a. Compute the anticipated break-even sales (units). units b. Compute the sales (units) required to realize operating income of $106,400. units Check My Work 2 more Check My Work uses remaining. All work saved. Previous Next
Break-Even Sales and Sales to Realize a Target Profit For the current year ending October 31, Papadakis Company expects fixed costs of $636,800, a unit variable cost of $66, and a unit selling price of $98. a. Compute the anticipated break-even sales (units). units b. Compute the sales (units) required to realize a target profit of $147,200. units
Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit Schylar Pharmaceuticals, Inc., plans to sell 145,000 units of antibiotic at an average price of $19 each in the coming year. Total variable costs equal $826,500. Total fixed costs equal $7,900,000. Required: 1. What is the contribution margin per unit? Round your answer to the nearest cent.$______ What is the contribution margin ratio? Round your answer to two decimal places. (Express as a decimal-based answer rather than a whole percent amount.) ________ 2. Calculate the sales revenue needed to break even. Round your answer to the nearest dollar.$_______ 3. Calculate the sales revenue needed to achieve a target profit of $230,000. Round your answer to the nearest dollar. $______ 4. What if the average price per unit increased to $20.50? Recalculate the following: a. Contribution margin per unit. Round your answer to the nearest cent. $______ b. Contribution margin ratio. Enter your answer as a…
Break-even sales and sales to realize operating income For the current year ended March 31, Kadel Company expects fixed costs of $550,000, a unit variable cost of $50, and a unit selling price of $75. a. Compute the anticipated break-even sales (units). units b. Compute the sales (units) required to realize operating income of $127,500. units 220000
Break-even sales and sales to realize operating income For the current year ended March 31, Kadel Company expects fixed costs of $597,600, a unit variable cost of $48, and a unit selling price of $72. a. Compute the anticipated break-even sales (units).fill in the blank 1 of 1 units b. Compute the sales (units) required to realize operating income of $136,800.fill in the blank 1 of 1 units

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS