Bright Future Corporation has a factory with fixed costs of $600,000 and a production capacity of 200,000 units annually. Its product product has a contribution margin of 25%. The target profit is $400,000. At full production, what does the selling price per unit need to be?

Bright Future Corporation has a factory with fixed costs of $600,000 and a production capacity of 200,000 units annually. Its product product has a contribution margin of 25%. The target profit is $400,000. At full production, what does the selling price per unit need to be?

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 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

See similar textbooks

Related questions

Q: Pina Company reports pre-tax financial income of $66,000 for 2017. The following items cause taxable…

A: To calculate the taxable income for 2017, we adjust the pre-tax financial income reported in the…

Q: General Accounting

A: Step 1: Define Financial Advantage/DisadvantageThe financial advantage or disadvantage is the net…

Q: Quick answer of this accounting questions

A: Step 1: Definition of Net Cash Inflow from Operating ActivitiesNet Cash Inflow from Operating…

Q: General Account Answer??

A: To solve the problem, we will compute the product cost per unit using variable costing, the cost of…

Q: I need Solution

A: 1. Classification of Activities in the Cash Flow Statement:The cash flow statement is divided into…

Q: Chang Company uses a standard costing system. In August, 7,960 actual labor hours were worked at a…

A: Step 1: Given informationStandard Hours = 6,350Actual Rate = $17.55Standard Rate = $15.45Actual…

Q: Please provide this question solution general accounting

A: Step 1: Identify the Gross Margin Formula Step 2: Identify the Variables Step 3: Substitute the…

Q: Hii expert please provide correct answer general Accounting

A: The basic earnings per share (EPS) measure the profit available to common shareholders for each…

Q: Smitha pension trust reported solution general accounting question

A: Step 1: Definition of Actual Return on Pension AssetsActual Return on Pension Assets is the total…

Q: Account questions

A: Extracted Problem Information:During April, 47,000 units were in process at the beginning of April…

Q: None

A: To find out how much you will have in 11 years, we calculate the future value of the $43,000 after…

Q: Need help with this general accounting question

A: To solve this, we need to calculate the present value difference caused by the change in interest…

Q: A business purchases a machine for $12,000 and expects it to have a useful life of 5 years with a…

A: Concept of Depreciation: Depreciation is the process of allocating the cost of a tangible asset over…

Q: Quick answer of this accounting questions

A: For this question we need to compute for the capital gains yield. Capital gains yield (CGY) is the…

Q: Gage Company reports the following information for its first year of operations: Unit produced this…

A: Explanation of Variable Costing: Variable costing is a method where only variable manufacturing…

Q: Quick answer of this accounting questions

A: Step 1: Definition of Debt-to-Equity RatioThe debt-to-equity ratio measures the relative proportion…

Q: What amount of net income or net loss would the company report for 2015? General accounting

A: Step 1: Given informationBeginning Stockholders' Equity: $685,000Dividends Paid: $35,000Ending…

Q: NONE

A: Explanation of Total Assets: Total assets represent the complete value of all resources owned by a…

Q: What is it's cash coverage ratio of this financial accounting question?

A: Step 1: Define Coverage RatiosCoverage ratios, as the name suggests, assess the potential of a…

Q: The ledger of American Company has the following work-in-process account. Work in Process- Painting…

A: We need to calculate:Units in process at May 31.Unit materials cost for May. Part (a): Units in…

Q: Round your answers to the nearest cent

A: Step 1: Define Pre-determined Overhead RatePre-determined overhead rate is a rate used to compute…

Q: What is cost of equity on these financial accounting question?

A: Step 1: Given Value for Calculation Risk free Rate = rf = 3%Market Return = rm = 11%Beta = b = 1.6…

Q: What is the taxable income? General Account.

A: Step 1: Key DataFrom the given data:Before Tax Revenue: $22,500Loan Principal Payment: $5,926 (not…

Q: None

A: Step 1: Define Cost of GoodsWe have manufacturing costs, cost of goods manufactured, and cost of…

Q: Calculate it's gross profit?

A: Step 1: Define Gross Profit MarginIn financial accounting, the gross profit margin, also known as…

Q: I want answer to 3 parts

A: Part(a): Predetermined Overhead Rate, when the Company uses Direct Labor hoursPredetermined Overhead…

Q: What is the amount of income or loss from acceptance of the offer?

A: Step 1: Define Differential CostDifferential costs involve two alternative choice costs. It has the…

Q: Please see attachment for details

A: Explanation of Sales Revenue: Sales revenue represents the total amount of money generated from…

Q: Which of the following accounts is considered a nominal account? (a) Rent Expense (b) Cash (c)…

A: (a) Rent ExpenseType: Nominal AccountReason: Nominal accounts are temporary accounts that record…

Q: What chasse's free cash flow and cash flow adequacy ratio ? General accounting

A: Step 1: Define Cash Flow Adequacy RatioThe financial ratio used for depicting the requirement of…

Q: General accounting question not use ai

A: Step 1: Define Gross ProfitGross profit is the difference between a company's revenue from sales and…

Q: How much will you have in 11 years ??

A: To find out how much you will have in 11 years, we calculate the future value of the $43,000 after…

Q: General account

A: The correct answer is:d. Absorption costing Explanation:Absorption Costing:This method is required…

Q: Question related to financial accounting: During the current year, Carl Equipment Stores had net…

A: Explanation of Days in Inventory: Days in inventory, also called Days Inventory Outstanding (DIO),…

Q: Provide correct answer general accounting

A: To calculate the payback period, we determine how long it takes for the cumulative cash flows to…

Q: None

A: Step 1: Define Contribution MarginThe contribution margin is a value by which the sales revenue…

Q: Please provide this question solution general accounting

A: Given:EPS (Earnings Per Share) = $2.25Book Value Per Share = $22.80Market/Book Ratio = 1.9xCalculate…

Q: Need help with this accounting questions

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

Q: I won't to this question answer general Accounting

A: Applied and Actual OverheadApplied Overhead: This is the estimated overhead costs that the company…

Q: Provide answer general Accounting question

A: Step 1: Define Return on equityThe return on equity is a method used to determine a firm's equity…

Q: Cost Account

A: The correct answer is:D) the payroll taxes that are paid on employee wages Explanation:A variable…

Q: Solve this question financial accounting

A: Step 1: Define Return on EquityReturn on equity assesses a company's profitability by determining…

Q: Hi expert please give me answer general accounting question

A: Approach to solving the question: For better clarity of the solution, I have provided both the…

Q: During its first year. Concord, Inc., showed a $33 per unit profit under absorption costing but…

A: Explanation of Absorption Costing: Absorption costing is a method where all manufacturing costs,…

Q: I want answer

A: Step 1: Under the weighted average method of inventory, the average cost per unit needs to be…

Q: Calculate it's gross margin ratio? General accounting

A: Calculation of Gross MarginGross Margin = Net Sales - Cost of Goods Sold =…

Q: Carlberg Company has two manufacturing departments, assembly, and painting. The assembly department…

A: Step 1: Understanding Equivalent Units of Production (EUP)The weighted-average method considers both…

Q: General accounting

A: Step 1: Formula Interest expense = Carrying amount x Semi-annual interest rate Step 2: Given…

Q: Please given correct option general accounting

A: To calculate the predetermined overhead rate, we use the formula: Predetermined…

Q: Please give correct profit margin on these general accounting question

A: Step 1: Define Profit MarginProfit margin measures the percentage of sales revenue that translates…

Question

What does the selling price per unit need to be?

Bright Future Corporation has a factory with fixed
costs of $600,000 and a production capacity of
200,000 units annually. Its product
product has a
contribution margin of 25%. The target profit is
$400,000. At full production, what does the
selling price per unit need to be?

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

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
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?
What does the selling price per unit need to be?
What does the selling price per unit need to be?
What does selling price per unit need to be?
Hi expert
NovaTech Manufacturing has a factory with fixed costs of $720,000 and a production capacity of 250,000 units annually. Its product sells with a 40% contribution margin. The target profit is $500,000. At full production, what does the selling price per unit need to be? Show your complete solution.
Selling price per unit ?
A firm will produce either product A or B. The total costs (TC) for both products can be estimated by the equations Product A: TC = $300,000 + ($23 x Sales volume) Product B: TC = $100,000 + ($29 x Sales volume) The firm believes there is a 20% chance for the sales volume of each product to equal 10,000 units and an 80% chance they will both equal 20,000 units. The selling price of product A is $42, and the selling price of product B is $40. The expected profit from producing product B equals a. $680,000 b. $390,000 c. $98,000 d. $120,000
How many units must be sold ?
Product X sells for $50 with variable costs of $36 per unit and annual fixed costs of $1,200,000. If the company wants to earn an operating income equal to 20% of sales, how many units must be sold, assuming all units produced are sold?
?