Deltech Speakers Inc. manufactures one type of computer speaker. The average selling price is $106 per computer speaker. The average variable cost amounts to $61 per computer speaker. The company's fixed costs are $21,000 per month. Do not enter dollar signs or commas in the input boxes. Round the units to the highest whole number. a) Calculate the monthly volume sales needed to break-even. Break-Even Point (Units): b) Determine the break-even point in sales dollars. Break-Even Point (Dollars): $ c) If the company's current monthly sales amount is $146,000, what is the margin of safety in dollars and in units? Margin of safety ($): $ Margin of safety (units): Check

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Please help me. 

Thankyou. 

Take me to the text
Deltech Speakers Inc. manufactures one type of computer speaker. The average selling price is $106 per computer speaker. The average variable
cost amounts to $61 per computer speaker. The company's fixed costs are $21,000 per month.
Do not enter dollar signs or commas in the input boxes.
Round the units to the highest whole number.
a) Calculate the monthly volume sales needed to break-even.
Break-Even Point (Units):
b) Determine the break-even point in sales dollars.
Break-Even Point (Dollars): $
c) If the company's current monthly sales amount is $146,000, what is the margin of safety in dollars and in units?
Margin of safety ($): $
Margin of safety (units):
Check
Note: The "check" button d
Transcribed Image Text:Take me to the text Deltech Speakers Inc. manufactures one type of computer speaker. The average selling price is $106 per computer speaker. The average variable cost amounts to $61 per computer speaker. The company's fixed costs are $21,000 per month. Do not enter dollar signs or commas in the input boxes. Round the units to the highest whole number. a) Calculate the monthly volume sales needed to break-even. Break-Even Point (Units): b) Determine the break-even point in sales dollars. Break-Even Point (Dollars): $ c) If the company's current monthly sales amount is $146,000, what is the margin of safety in dollars and in units? Margin of safety ($): $ Margin of safety (units): Check Note: The "check" button d
Expert Solution
steps

Step by step

Solved in 3 steps with 13 images

Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education