**Break-Even Analysis for Outdoor Company****Target Profit Calculation**Outdoor Company sells a product for $195 per unit. The variable cost is $100 per unit, and fixed costs are $332,500.Determine:- (a) The break-even point in sales units.- (b) The sales units required to achieve a target profit of $63,175.**a. Break-even point in sales units:** [Calculation space provided for entering units]**b. Break-even point in sales units required to achieve a target profit of $63,175:** [Calculation space provided for entering units]**Analysis Guide:**- **Break-even Point:** This is the number of units that must be sold to cover all fixed and variable costs (where total revenue equals total cost, resulting in zero profit).- **Target Profit Point:** This is the number of units that must be sold to cover all costs and achieve a specified profit.To calculate, use the following formulas:1. **Break-even point in units:** \[ \text{Break-even point (units)} = \frac{\text{Fixed Costs}}{\text{Price per Unit} - \text{Variable Cost per Unit}} \]2. **Sales units for target profit:** \[ \text{Units for Target Profit} = \frac{\text{Fixed Costs} + \text{Target Profit}}{\text{Price per Unit} - \text{Variable Cost per Unit}} \]

CH 21 HW--MJR eBook Show Me How Target Profit Outdoors Company sells a product for $195 per unit. The variable cost is $100 per unit, and fixed costs are $332,500. Determine (a) the break-even point in sales units and (b) the sales units required to achieve a target profit of $63,175. a. Break-even point in sales units b. Break-even point in sales units required to achieve a target profit of $63,175 units units

CH 21 HW--MJR eBook Show Me How Target Profit Outdoors Company sells a product for $195 per unit. The variable cost is $100 per unit, and fixed costs are $332,500. Determine (a) the break-even point in sales units and (b) the sales units required to achieve a target profit of $63,175. a. Break-even point in sales units b. Break-even point in sales units required to achieve a target profit of $63,175 units units

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

Question 54
chapter 7 - Q48 Please check my answers
Exercise A-2 Absorption Costing Approach to Setting a Selling Price [LOA-2] Martin Company is considering the introduction of a new product. To determine a selling price, the company has gathered the following information: Number of units to be produced and sold each year Unit product cost Projected annual selling and administrative expenses Estimated investment required by the company Desired return on investment (ROI) 18,500 $ 50 2$ 66,000 $ 390,000 21% The company uses the absorption costing approach to cost-plus pricing. Required: 1. Compute the markup required to achieve the desired ROI. ((Round your final answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) Markup percentage 2. Compute the selling price per unit. (Round your intermediate and final answers to 2 decimal places. ) Unit product cost Markup Selling price per unit $ 0.00
Pls answer fast without plagiarism and introduction and calculation detailed plz I give up vote
4 Homework Saved Hel Munoz Company makes a product that sells for $31 per unit. The company pays $20 per unit for the variable costs of the product and incurs annual fixed costs of $107,800. Munoz expects to sell 21,700 units of product. Required Determine Munoz's margin of safety expressed as a percentage. (Round your percentage answers to 2 decimal places (i.e., 0.2345 should be entered as 23.45).) Margin of safety % ...
Help
Please do not give solution in image format thanku
Exercise 18-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $330 and of each door is $760. The variable cost of each window is $190 and of each door is $480. Fixed costs are $940,800. (1) Compute the weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin (3) Compute the number of units of each rpoduct that will be sold at the break-even point
Homework, Chapter 25 Process or Sell Product J19 is produced for $3.42 per gallon. Product J19 can be sold without additional processing for $4.10 per gallon, or processed further into Product R33 at an additional cost of $0.48 per gallon. Product R33 can be sold for $4.54 per gallon. a. Prepare a differential analysis dated April 30 on whether to sellI Product J19 (Alternative 1) or process further into Product R33 (Alternative 2). Round your answers to the nearest cent. If required, use a minus sign to indicate a loss. Differential Analysis Sell Product J19 (Alt. 1) or Process Further into Product R33 (Alt. 2) April 30 Process Sell Differential Further into Product J19 Effects Product R33 (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per unit $ Costs, per unit Profit (loss), per unit b. Should Product J19 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)?
Unit VI question 6
Exercise A-2 Absorption Costing Approach to Setting a Selling Price [LOA-2] Martin Company is considering the introduction of a new product. To determine a selling price, the company has gathered the following information: Number of units to be produced and sold each year 15,500 Unit product cost $ 50 Projected annual selling and administrative expenses $ 66,000 Estimated investment required by the company $ 450,000 Desired return on investment (ROI) 18 % The company uses the absorption costing approach to cost-plus pricing. Required: 1. Compute the markup required to achieve the desired ROI. ((Round your final answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) 2. Compute the selling price per unit. (Round your intermediate and final answers to 2 decimal places. )