Craig Goods is analyzing its break-even point for a product with a selling price of $75 per unit. The variable cost per unit is $50, and the fixed costs are $180,000 per year. If the company wants to achieve a profit of $60,000, how many units must it sell to meet this profit goal?
Q: None
A: Step 1: Definition of Work in Process (WIP) InventoryWork in Process (WIP) Inventory refers to…
Q: Montu Consultants Corporation obtained a building, its surrounding land, and a computer system in a…
A: Explanation of Lump-Sum Purchase: A lump-sum purchase occurs when multiple assets are acquired in a…
Q: help me
A: Given Information:Stock Market Return: 12.5%Corporate Bond Return: 8.2%Short-Term T-Bills Return:…
Q: Subject:-- financial accounting
A: Step 1: Definition of Interest Tax ShieldThe interest tax shield is the tax savings a firm realizes…
Q: Hello tutor please help me this question
A: Let's break it down step by step.Given Information:Base salary = $1,840 (fixed amount received every…
Q: Need Answer
A: Concept of Standard Cost:Standard cost is a predetermined or budgeted cost assigned to materials,…
Q: Corvex Industries had sales of $620 million last year, and its production facility operated at 80%…
A: To determine the total amount of fixed assets needed after the sales increase, we use the…
Q: Need help with this question solution general accounting
A: Step 1: Definition of Activity RateThe activity rate in an Activity-Based Costing (ABC) system is…
Q: Kindly help me with this General accounting questions not use chart gpt please fast given solution
A: Step 1: Define Balance Sheet EquationThe Balance Sheet Equation is a fundamental accounting…
Q: Compute the total fixed expenses
A: Provided Data:Planned sales = 5,000 helmetsSelling price per helmet = $75Direct materials per helmet…
Q: Calculate the labor quantity variance?? Accounting
A: Step 1: Definition of Labor Quantity (Efficiency) VarianceThe labor quantity variance (also known as…
Q: Need solution to this accounting question with accounting methods
A: Definition of Cash Collected from Customers:Cash Collected from Customers is the total amount of…
Q: Morgan Company uses a periodic inventory system. For the year 2015, its beginning inventory was…
A: Step 1: Definition of Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) refers to the direct costs…
Q: Solve the problem
A: Concept of SalesSales refer to the total revenue a company earns from selling its goods or services…
Q: Danzel Home Goods operates in the household goods industry, where stocks typically have an average…
A: Step 1: Calculate Earnings Per Share (EPS)EPS=Number of Shares OutstandingNet Income Given:Net…
Q: provide final answer accounting ?
A: Given dataPV = 200 # Initial investmentr = 0.05 # Annual return rate (5%)t = 20 # Investment…
Q: Need help this question
A: Step 1: Definition of Absorption vs. Variable Costing Income Difference The income difference…
Q: Provide Answer
A: Step 1: Definition of Organizational LearningOrganizational learning is the process through which an…
Q: I need guidance with this financial accounting problem using the right financial principles.
A: Step 1: Definition of Capital Gains YieldCapital gains yield is the price appreciation on an…
Q: What is the profit margin?
A: Understand the formula for profit marginProfit margin is a financial metric that shows the…
Q: What is the gross profit margin of this accounting question?
A: Step 1: Define Gross Profit MarginThe gross profit margin is the ratio of gross profit to sales…
Q: accounting questions
A: Step 1: Definition of Recognized Gain and Stock BasisRecognized Gain: This is the portion of a…
Q: What amount of indirect cost would be assigned if services to a project required $40,000 of
A: Concept of Direct Labor Cost:Direct labor cost refers to the portion of wages paid to employees who…
Q: Musk Jewellers wants to apply a markup of 35% based on the selling price for a goldbracelet. If the…
A: When a product's markup is 35% of its selling price, that means its cost (here $4,160) represents…
Q: Solve this questions
A: Step 1: Definition of Fixed CostsFixed costs are expenses that a business incurs that do not change…
Q: Can you solve this general accounting problem using accurate calculation methods?
A: Step 1: Calculate Gross ProfitGross Profit = Net Sales - Cost of Goods SoldGross Profit = $700,000 -…
Q: I need help with this solution and general accounting
A: Step 1: Definition of Stock BuybackA stock buyback (or share repurchase) occurs when a company…
Q: Please explain the solution to this general accounting problem using the correct accounting…
A: Step 1: Definition of Activity CostActivity cost refers to the total cost associated with performing…
Q: General accounting question
A: Step 1: Definition of Total AssetsTotal Assets refer to everything that a company owns and has…
Q: Please provide answer the following requirements on these financial accounting question
A: Step 1: Definition of P/E Ratio and YieldP/E Ratio (Price-to-Earnings Ratio) is calculated by…
Q: Kelly Textiles estimated manufacturing overhead for the year to be $315,600. At the end of the year,…
A: Explanation of Estimated Manufacturing Overhead:Estimated manufacturing overhead is the projected…
Q: A new machine with a purchase price of $90,000, transportation costs of $8,000, installation costs…
A: Explanation of Cost Basis: Cost basis refers to the total investment in an asset used for tax and…
Q: I need the correct answer to this general accounting problem using the standard accounting approach.
A: Step 1: Define Overhead RateThe overhead rate is calculated by dividing the total overhead costs…
Q: I am looking for help with this general accounting question using proper accounting standards.
A: Step 1: Definition of Prepaid RentPrepaid rent is a payment made for rent that has been paid in…
Q: Expert of Account Solve this asap
A: Step 1: Definition of Discounted Note ProceedsA discounted note is a short-term debt instrument sold…
Q: Marvatek Ltd. estimates its factory overhead costs to be $45,600 and machine hours to be 6,000 for…
A: Explanation of Predetermined Overhead Rate:The predetermined overhead rate is an estimated cost per…
Q: what is firms cost of equity ??( Financial Account )
A: 1. Capital Asset Pricing Model (CAPM)The CAPM formula is: Re=Rf+β(Rm−Rf) Where:Re = Cost of…
Q: What is the average inventory?
A: Step 1: Definition of Average InventoryAverage inventory is a financial metric used to estimate the…
Q: Calculate the Profit Margin for a company with Net Income of $235 and Sales of $1,645. a. 13.25% b.…
A: The Profit Margin measures how much profit a company makes for every dollar of sales. It is…
Q: A firm has a market value equal to ns book value Currently, the firm has excess cash of s800, other…
A: Step 1: Let's understand the Given InformationExcess cash = $800Other assets = $5,200Equity =…
Q: I am looking for the correct answer to this general accounting question with appropriate…
A: Step 1: Definition of Reconciled Bank BalanceA reconciled bank balance is the balance in the bank…
Q: provide correct answer
A: To calculate the holding rate of return and the future value of a $200 investment, we use the…
Q: Calculate the beginning inventory?
A: Definition of Beginning Inventory:Beginning inventory refers to the value of merchandise or…
Q: Determine the direct labor cost
A: Explanation of Direct Labor Cost Budget: Direct labor cost budget represents the projected…
Q: What is the correct answer with accounting question and solution
A: Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) is a financial metric that…
Q: answer plz
A: To calculate the Profit Margin, we use the DuPont Formula, which breaks down Return on Equity (ROE)…
Q: I need guidance with this general accounting problem using the right accounting principles.
A: Step 1: Definition of Cash Receipts from CustomersCash receipts from customers refer to the cash…
Q: Please provide the solution to this general accounting question with accurate accounting…
A: Step 1: Definition of Labor VariancesLabor variances analyze the difference between actual labor…
Q: What are rangoons profit margin and debt ratio?
A: To determine Rangoon Timber Company's profit margin and debt ratio, we use the given financial…
Q: General Accounting solve this problem
A: Step 1: Definition of Gross Profit MethodThe gross profit method estimates ending inventory by…
Craig Goods is analyzing its break-even point for a product with a selling price of $75 per unit. The variable cost per unit is $50, and the fixed costs are $180,000 per year. If the company wants to achieve a profit of $60,000, how many units must it sell to meet this profit goal?
Step by step
Solved in 2 steps
- Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?Baghdad Company produces a single product. They have recently received the result of a market survey that indicates that they can increase the retail price of their product by 10% without losing customers or market share. All other costs will remain unchanged. If they enact the 10% price increase, what will be their new break-even point in units and dollars? Their most recent CVP analysis is:Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
- Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000A company is analyzing its break-even point for a product with a selling price of $50 per unit. The variable cost per unit is $30, and the fixed costs are $200,000 per year. If the company wants to achieve a profit of $50,000, how many units must it sell to meet this profit goal?How many units must it sell?
- Halifax Products sells a product for $75. Variable costs per unit are $50, and monthly fixed costs are $75,000. Answer the following questions: Required: What is the break-even point in units? What unit sales would be required to earn a target profit of $200,000? Assuming Halifax achieve the level of sales required in part b, what is the margin of safety in sales dollars?I want to answer this questionWeber Inc., sells its one product for $40 per unit. The variable cost per unit is $24. The fixed cost per year is $16,000a. What is the break-even point in units?b. What is the break-even point in dollars?c. If Weber would like to have $1,000 profit, how many units should be sold?d. If the selling price changes to $34 per unit, what is the new break-even point in units?
- Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price $ 450.00 per unit Variable costs 210.00 per unit Fixed costs 764,000 per year Assume that the projected number of units sold for the year is 4,750. Consider requirements (b), (c), and (d) independently of each other. What will the operating profit be? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? Suppose that fixed costs for the year are 20 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much?Suppose executives estimate that the unit variable cost for their DVD recorder is $100, the fixed cost related to the product is $10 million annually, and the target volume for next year is 100,000 recorders. What sales price will be necessary to achieve a target profit of $l million?I have the following additional questions: 1) Calculate the breakeven point in dollars under the current scenario 2) Calculate the number of units to be sold if the company desires a target profit of $225,000. 3) Calculate the sales dollars if the company desires a target profit of $225,000.
