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Cost Volume Profit   Total Company produces one type of machine with the following costs and revenues for the year:   Total revenues $4,200,000   Total fixed costs $1,400,000   Total variable costs $2,800,000   Total units produced and sold 700,000   a calculate the breakeven in unit b calculate the quantity that would produce an operating profit of $100000 c calculate the quantity that would produce an operating profit of  10 percent of sales dollars  d calculate the breakeven quantity if sales increased by 20 perc ent  e calculate the operating margin if 50000 unit are sold

Cost Volume Profit   Total Company produces one type of machine with the following costs and revenues for the year:   Total revenues $4,200,000   Total fixed costs $1,400,000   Total variable costs $2,800,000   Total units produced and sold 700,000   a calculate the breakeven in unit b calculate the quantity that would produce an operating profit of $100000 c calculate the quantity that would produce an operating profit of  10 percent of sales dollars  d calculate the breakeven quantity if sales increased by 20 perc ent  e calculate the operating margin if 50000 unit are sold

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cost Volume Profit

 

Total Company produces one type of machine with the following costs and revenues for the year:  

Total revenues $4,200,000  

Total fixed costs $1,400,000  

Total variable costs $2,800,000  

Total units produced and sold 700,000  

a calculate the breakeven in unit

b calculate the quantity that would produce an operating profit of $100000

c calculate the quantity that would produce an operating profit of  10 percent of sales dollars 

d calculate the breakeven quantity if sales increased by 20 perc ent 

e calculate the operating margin if 50000 unit are sold 
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