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

Managerial Accounting: The Cornerstone of Business Decision-Making
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter2: Basic Managerial Accounting Concepts
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Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...
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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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