Centex Manufacturing has a plant with fixed costs of $840,000 and a production capacity of 150,000 units annually. Its product sells with a 30% contribution margin. The target profit is $630,000. At full production, what does the selling price per unit need to be? Show your complete solution.

Centex Manufacturing has a plant with fixed costs of $840,000 and a production capacity of 150,000 units annually. Its product sells with a 30% contribution margin. The target profit is $630,000. At full production, what does the selling price per unit need to be? Show your complete solution.

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: Solve this Accounting MCQ

A: Explanation of Modified Unit Attribution:Modified unit attribution is a refined approach to…

Q: Financial Accounting

A: Step 1: Definition of Disposal of AssetThe disposal of an asset involves removing the asset from the…

Q: A $2,000 bond issued in 2018 pays $180 in interest each year. What is the current yield on the bond…

A: The current yield of a bond is a measure of the return an investor earns each year based on the…

Q: Prob. Cost account

A: Step 1: Definition of Interest ExpenseInterest expense is the cost incurred by an entity for…

Q: Need help this question

A: Step 1: Analysis of information givenBook Value = $14,000Sale Value = $12,000We need to calculate…

Q: Magnus Enterprises has net sales of $1,020,000, net income of $74,500, average current assets of…

A: Explanation of Net Income:Net income is the final profit a company earns after deducting all…

Q: Greenfield Industries sells a product for $80 per unit. Variable costs per unit are $50, and monthly…

A: Step 1: We use the basic Break-even and Target Profit Formula to calculate how many units Greenfield…

Q: I want right answer

A: Concept of Selling Price per Unit:The selling price per unit is the amount a business charges…

Q: A company has a total cost of $50.00 per unit at a volume of 100,000 units. The variable cost per…

A: We can determine the price per unit using the following steps: Step 1: Calculate the Total Fixed…

Q: Net income?

A: Answer:Net Income = $105,000,000

Q: Provide solution and accounting

A: Step 1: Definition of Key TermsTotal Assets: Represents everything a company owns that has economic…

Q: provide correct answer

A: Step 1: Definition of Gain Allocation in PartnershipIn a partnership, if one partner contributes…

Q: Which production is expected to be units.

A: Step 1: Use the High-Low Method FormulaThe high-low method helps estimate the variable and fixed…

Q: Calculate alec Baldwin's taxable income

A: Explanation of Accumulated Earnings and Profits: Accumulated Earnings and Profits (E&P)…

Q: No WRONG ANSWER

A: Step 1: Definition of Applied Manufacturing OverheadApplied Manufacturing Overhead is the indirect…

Q: General accounting

A: Step 1: Definition of Ending Work in Process InventoryEnding Work in Process Inventory refers to the…

Q: Financial Account

A: Step 1: Definition of Gross Profit MarginGross Profit Margin is a financial ratio that shows the…

Q: need this question answer General accounting

A: Step 1: Define Net Income Calculation (Reverse Calculation Method)To find the net income of the…

Q: 1. Which financial statement reports a company’s financial position at a specific point in time?a)…

A: b) Balance SheetThe balance sheet reports a company's financial position at a specific point in time…

Q: 1: An employer in Delaware City, DE, employs two individuals, whose taxable earnings to date (prior…

A: Below the through each case carefully and recalculate the correct FUTA and SUTA taxes. Here's the…

Q: Isla Innovations purchased a patent on 1 August 2020 for $360,000. The economic benefits were…

A: Explanation of Patent:A patent is an intangible asset that gives the holder exclusive rights to…

Q: What is net income using accural accounting?

A: Explanation of Accrual Accounting:Accrual accounting is a method where revenues and expenses are…

Q: This is accounting problem ... youn

A: Calculations and Explanations1. Contribution Margin per Machine HourSelling Price per Unit:…

Q: Need help with this question solution general accounting

A: Step 1: Definition of Ending EquityEnding equity represents the value of a company's equity at the…

Q: The balance in the office supplies account on June 1was $5,200, supplies purchased during June were…

A: Step 1: DefinitionsAdjusting Entry:An adjusting entry is made at the end of an accounting period to…

Q: Jonathan Smith's weekly gross earnings for the week ending March 10 were $3,200, and his federal…

A: Total earnings so far: $110,000 + $3,200 = $113,200 (below the $160,200 cap) Social Security tax…

Q: Hello tutor please provide correct answer general accounting question

A: Step 1: Define High-Low MethodThe High-Low Method is a technique used to separate mixed costs into…

Q: Fischer Corporation requires sales of $3,000,000 to cover its fixed costs of $1,200,000 and to earn…

A: Concept of Sales (or Revenue):Sales, also known as revenue, represent the total amount earned by a…

Q: ??!

A: Degree of Operating Leverage (DOL)The Degree of Operating Leverage (DOL) measures the sensitivity of…

Q: Need help with this question solution general accounting

A: Step 1: Definition of Straight-Line DepreciationStraight-Line Depreciation is a method of…

Q: Rena Company reports total assets and total liabilities of $251,000 and $110,000, respectively, at…

A: Step 1: DefinitionsExplanation of Shareholders' Equity:Shareholders' equity represents the owners'…

Q: Alec Baldwin, Inc., has accumulated earnings and profits at the end of the year of $350,000. Alec…

A: Explanation of Accumulated Earnings and Profits (E&P):Accumulated Earnings and Profits (E&P)…

Q: cost accounting

A: Step 1: Definition of Accrued Interest PayableAccrued Interest Payable is the interest expense that…

Q: What is the estimated ending inventory on April 30 for this financial accounting question?

A: Step 1: Definition of Gross Profit MethodThe Gross Profit Method is an estimation technique used to…

Q: General accounting question

A: Step 1: Definition of Units-of-Production DepreciationUnits-of-production depreciation is a method…

Q: I want to this question answer general accounting

A: Step 1: Define High-Low MethodThe High-Low Method is a technique used to separate the fixed and…

Q: What is the purpose of the “trial balance” in financial accounting?a) To prepare financial…

A: The correct answer is:b) To verify the accuracy of debit and credit entriesExplanation:A trial…

Q: Get correct answer with accounting question

A: Step 1: Definition of Accounts Receivable Days OutstandingAccounts Receivable Days Outstanding, also…

Q: A fertilizer manufacturing company has an industry average P/E ratio of 20. The company's earnings…

A: Given:P/E ratio = 20EPS = $6.50 Formula:Share price = P/E ratio * EPSShare price = 20 * 6.5…

Q: Why is ethical accounting important in business?Why is ethical accounting important in business?

A: Ethical accounting is crucial in business because it ensures transparency, accuracy, and trust in…

Q: Not use ai solution please and accounting question

A: Step 1: Definition of High-Low MethodThe high-low method is a technique used to estimate the…

Q: what is the cost per unit?

A: Step 1: Definition of Cost Per UnitCost per unit is the total production cost divided by the number…

Q: Please give me help this question. Financial accounting

A: Correct option: (a) $34,300. ExplanationThe payment terms are 2/10, n/30, meaning the customer gets…

Q: Elle corporation question.

A: Part 3: Materials Quantity VarianceTo calculate the materials quantity variance, we use the…

Q: What is the variable overhead rate variance?

A: Explanation of Variable Overhead: Variable overhead represents indirect manufacturing costs that…

Q: Please provide problem with accounting question

A: Cash paid for income taxes during the year = Income taxes payable, beginning + Income taxes expense…

Q: General accounting?

A: Step 1: Definition of Break-Even Point (in Units)The break-even point in units is the number of…

Q: What was the percentage rate of return on the plan assets for this financial accounting question?

A: To calculate the percentage rate of return on the pension plan assets for Willow Creek Technologies,…

Q: General accounting

A: Step 1: Definition of Percentage Change The percentage change measures the relative change between…

Q: Answer to below Question

A: Step 1: Information givenOriginal Cost of Asset = $50,000Salvage Value = $3,000Useful Life = 6…

Question

100%

Accounting problem with correct solution

Centex Manufacturing has a plant with fixed costs of $840,000 and a
production capacity of 150,000 units annually. Its product sells with a 30%
contribution margin. The target profit is $630,000. At full production, what
does the selling price per unit need to be? Show your complete solution.

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

What does the selling price per unit need to be?
Selling price per unit ?
Help
NDB Company has a factory with fixed costs of $650,000 and a production capacity of 225,000 units annually. Its product sells with a 36% contribution margin. The target profit is $470,000. At full production, what does the selling price per unit need to be? Show your complete solution. Give me answer
How many units must be sold to achieve this goal?
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 much sales are required to earn the target income?
What is the gross profit margin % ?
Pioneer Manufacturing has fixed costs of $60,000 and variable costs of $40 per unit. If they sell each unit for $100, how many units must be sold to earn a target profit of $40,000? (Round your answer). General Account
Ans
Compute the contribution margin per unit?
Suppose that a manufacturer can produce a part for $11.00 with a fixed cost of $7,000. Alternately, the manufacturer could contract with a supplier in Asia to purchase the part at a cost of $13.00, which includes transportation. a. If the anticipated production volume is 1,300 units, compute the total cost of manufacturing and the total cost of outsourcing. b. What is the best decision? a. The total cost of manufacturing is $.