Calculate the number of units that Danico Industries must sell in order to realize an operating income of $225,000 when fixed costs are $540,000 and the unit contribution margin is $30. a. 25,500 units b. 25,000 units c. 24,500 units d. 26,000 units

Calculate the number of units that Danico Industries must sell in order to realize an operating income of $225,000 when fixed costs are $540,000 and the unit contribution margin is $30. a. 25,500 units b. 25,000 units c. 24,500 units d. 26,000 units

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...

See similar textbooks

Related questions

Q: Problem 3.4.2

A: Provided Data:Net Sales = $755,000Cost of Goods Sold (COGS) = $384,000Total Operating Expenses =…

Q: Brightstar inc. reported qn

A: Given Information:Book balance: $200Deposits in transit: $180Checks outstanding: $150Bank statement…

Q: Can you demonstrate the accurate method for solving this general accounting question?

A: Step 1: Define Direct Labor Rate Variance (DLRV)The Direct Labor Rate Variance measures the…

Q: I am looking for the correct answer to this general accounting question with appropriate…

A: Step 1: Define Net IncomeNet income is the total profit of a company after all expenses, taxes, and…

Q: R-Mart has a beginning receivables balance on February 1 of $1050. Sales for February through May…

A: To find April collections, we need to understand how the Accounts Receivable (A/R) period affects…

Q: Solve this without ai pl

A: Step 1: Definition of Overhead ApplicationOverhead application refers to the process of allocating…

Q: Variable overhead:135000, fixed overhead:175000

A: Explanation of Absorption Costing: Absorption costing is a method of product costing that assigns…

Q: What is alvarez's gross profit?

A: Explanation of Net Sales:Net sales refer to the total revenue a company earns from its core business…

Q: Kindly help me with this General accounting questions not use chart gpt please fast given solution

A: Step 1: Define Interest ExpenseInterest expense refers to the cost incurred by a company or…

Q: I am trying to find the accurate solution to this financial accounting problem with appropriate…

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

Q: What is the estimate inventory balance at june 30?

A: Step 1: Calculate the Gross Profit and COGSGross Margin is given as 30% of sales.Sales =…

Q: I need guidance with this general accounting problem using the right accounting principles.

A: Step 1: Definition of MarginMargin refers to the percentage of sales revenue that is retained as…

Q: Quick answer of this accounting question

A: Step 1: Definition of Net Cash from Investing ActivitiesNet Cash from Investing Activities…

Q: Quick answer of this accounting questions

A: Step 1: Definition of P/E Ratio and Market-to-Book RatioP/E (Price-to-Earnings) Ratio measures the…

Q: Please provide the correct answer to this general accounting problem using accurate calculations.

A: Break-even Analysis for Organic Harvest Inc.1. Problem RestatementOrganic Harvest Inc. sells…

Q: What is the difference between accrual accounting and cash basis accounting?explain

A: Difference Between Accrual Accounting and Cash Basis AccountingIntroductionAccounting methods are…

Q: Solve this

A: Explanation of Retained Earnings:Retained earnings represent the cumulative amount of net income…

Q: Can you solve this general accounting problem using accurate calculation methods?

A: To calculate the Direct Labor Efficiency Variance, use the following formula:Direct Labor Efficiency…

Q: Please provide the solution to this financial accounting question using proper accounting…

A: Step 1: Definition of Sales DiscountsSales discounts are reductions in the selling price offered to…

Q: At the beginning of the year, Mitchell Corporation had total assets of $920,000 and total…

A: Step 1: Definitions Concept of Stockholders' Equity:Stockholders' equity represents the ownership…

Q: Roach and Sulman own a grocery shop. Their first financial year ended on 31 December 19x0. The…

A: Appropriation StatementPartners' Current AccountsInformation given for the question DetailsRoach…

Q: Honda Corporation had beginning raw materials inventory of $34,500. During the period, the company…

A: Explanation of Raw Materials Inventory:Raw Materials Inventory refers to the cost of materials that…

Q: Can you help me solve this general accounting problem using the correct accounting process?

A: To determine the total cost of the machine, we need to include all the costs necessary to acquire…

Q: During 2022, the assets of Towering Peak increased by $62,000, and the liabilities increased by…

A: Explanation of Assets:Assets represent everything a business owns that has monetary value and can…

Q: Can you help me solve this general accounting question using valid accounting techniques?

A: Explanation of Return on Assets (ROA):Return on Assets (ROA) is a profitability ratio that measures…

Q: What are the total product costs for the company?

A: Explanation of Absorption Costing: Absorption costing is a method of product costing that includes…

Q: Sheinberg Industries reported 2023 sales ($ in millions) of $6,842 and a cost of goods sold of…

A: Definition of Gross Profit:Gross profit represents the difference between a company's net sales and…

Q: Your boss asks you to compute the company's cash conversion cycle. Looking at the financial…

A: To compute Sunset Valley Inc.'s cash conversion cycle:1. Calculate Days Inventory Outstanding…

Q: Kodak Inc. sells its product for $95 per unit. During 2023, it produced 85,000 units and sold 68,000…

A: Explanation of Absorption Costing: Absorption costing is a method of product costing that includes…

Q: I need solution with step by step correct approach...,,..?

A: 1.1.13 AccountingThe allocation of joint product costs at the split-off point is governed by:b)…

Q: Can you help me solve this financial accounting question using valid financial accounting…

A: Step 1: Definition of Inventory Lost in the FireThe inventory lost in the fire can be estimated…

Q: Can you demonstrate the accurate steps for solving this financial accounting problem with valid…

A: Concept of Contribution Margin RatioThe contribution margin ratio represents the percentage of each…

Q: Question: Skyline Enterprises has an average collection period of 25 days. Its average daily…

A: Provided Data:Average collection period = 25 daysAverage daily investment in receivables =…

Q: Ivanhoe Company had these transactions during the current period. June 12 Issued 82,500 shares of $1…

A: On June 12, Ivanhoe Company issued 82,500 shares of $1 par value common stock for cash of $309,375.…

Q: Hartex Ltd. computes its predetermined overhead rate annually on the basis of direct labour-hours.…

A: Provided Data:Estimated manufacturing overhead = $684,000Estimated direct labour-hours = 57,000…

Q: Can you solve this general accounting question with accurate accounting calculations?

A: Step 1: Definition of Units of Production Depreciation MethodThe Units of Production Depreciation…

Q: The gross profit margin is

A: To calculate the Gross Profit Margin, use the formula:Gross Profit Margin = (Gross Profit / Sales) ×…

Q: Marino Snacks Co. had its highest total cost of $84,000 in July and its lowest total cost of $60,000…

A: Definition of Variable Cost per Unit:Variable cost refers to the portion of total cost that changes…

Q: General accounting question

A: Book Value Per Share = Total Common Stockholders' Equity / Number of Common Shares…

Q: Financial Accounting 2 PTS

A: Provided Data:Current assets = $8,600Net fixed assets = $31,900Current liabilities = $7,400Long-term…

Q: Yost received 300 NQOs (each option gives Yost the right to purchase 10 shares of Cutter Corporation…

A: Let's break down the scenario in Part d step by step, based on the assumptions: Scenario:Yost…

Q: I need help finding the accurate solution to this general accounting problem with valid methods.

A: Step 1: Definition of Insurance ExpenseInsurance expense is the portion of a prepaid insurance…

Q: Can you explain the correct methodology to solve this general accounting problem?

A: Step 1: Definition of Cost of Goods Sold & Inventory PurchasedCost of Goods Sold (COGS) is the…

Q: I need assistance with this general accounting question using appropriate principles.

A: Step 1: Definition of Under-Allocated and Overallocated Manufacturing OverheadUnder-allocated…

Q: Step by step.

A: Step 1: Starting shares on January 1ABC had 40,000 shares outstanding.Step 2: 10% Stock Dividend on…

Q: Base on the scenerio below Mr. Snow was extremely upset with the budget deficit. He immediately…

A: 1. Sales Volume and Variable Cost Volume Variances (Master Budget vs. Flexible Budget):The sales…

Q: What is the predetermined overhead rate ?

A: Provided Data:Variable manufacturing overhead rate = $8.25 per machine hourFixed manufacturing…

Q: I need help with this financial accounting problem using proper accounting guidelines.

A: Asset Turnover Ratio = Net Sales / Average Total AssetsGiven:Net Sales = $62.7 billionBeginning…

Q: Determine the shares outstanding once the debt is issued

A: Let's solve step by step.Given:Shares outstanding = 63,500Market price per share = $22.80Target debt…

Q: long answer...

A: Step 1: Calculate the variable cost per unit.Direct materials and labor: $108,000Overhead (25%…

Question

Please explain how to solve this financial accounting question with valid financial principles.

Calculate the number of units that
Danico Industries must sell in order to
realize an operating income of $225,000
when fixed costs are $540,000 and the
unit contribution margin is $30.
a. 25,500 units
b. 25,000 units
c. 24,500 units
d. 26,000 units

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

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.
Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are $600,000. Company B is a service firm with current service revenue of $2,800,000 and a 15% contribution margin. Company Bs fixed costs are $375,000. Compute the degree of operating leverage for both companies. Which company will benefit most from a 15% increase in sales? Explain why.
Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable costs are $5 per unit, what are their fixed costs? $240,000 $200,000 $260,000 Their fixed costs cannot be determined from the information presented.
Calculate the number of units that Danico Industries must sell in order to realize an operating income of $225,000 when fixed costs are $540,000 and the unit contribution margin is $30. a. 25,500 units b. 25,000 units c. 24,500 units d. 26,000 units
Calculate the number of units that must be sold by Crestline corp.
Calculate the number of units that must be sold in order to realize an operating income of $150,000 when fixed costs are $480,000 and the unit contribution margin is $25. a. 25,200 units b. 26,400 units c. 27,000 units d. 25,600 units.
The unit contribution margin?
Calculate the number of units that must be sold
Calculate the number of units that must be sold in order to realise an ??? General accounting
Calculate the number of units that must be sold in order to realize an opereting income
Need