eville’s Pillow Store sells pillows with a sales price of $25.00 each. Each pillow costs the company $20.00 to produce, and the store incurs a total of $130,000 in fixed costs each year. What is the yearly breakeven point in units? Select one: a. 6,500 pillows b. 5,200 pillows c. None of these oprions are correct. d. 26,000 pillows e. 39,000 pillows

eville’s Pillow Store sells pillows with a sales price of $25.00 each. Each pillow costs the company $20.00 to produce, and the store incurs a total of $130,000 in fixed costs each year. What is the yearly breakeven point in units? Select one: a. 6,500 pillows b. 5,200 pillows c. None of these oprions are correct. d. 26,000 pillows e. 39,000 pillows

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

Yarn Basket, Ltd., sells handminus−knit scarves. Each scarf sells for $35. The company pays $350 to rent a vending space for one day. The variable costs are $10 per scarf. What total revenue amount does the company need to earn to break even?
Rolf's Golf store sells golf balls for $32 per dozen. The store's overhead expenses are 30% of cost and the owners require a profit of 19% of cost. a. How much does Rolf's Golf store buy the golf balls for? b. What is the price needed to cover all the costs and expenses? c. What is the highest rate of markdown at which the store will still break even? d. What markdown rate would price the golf balls at cost? Anna sells a certain pair of earrings at her store for $46.40 per pair. Her overhead expenses are $6.00 per pair and she makes 55.00% operating profit on selling price.Round to the nearest cent. a. What is her amount of markup per pair of earrings? b. How much does it cost her to purchase each pair of earrings?
Vision Company sells optical equipment. Blitz Company manufactures special glass lenses. Vision orders 11,400 lenses per year, 200 per week, at $35 per lens. Blitz covers all shipping costs. Vision earns 25% on its cash investments. The purchase-order lead time is 2.5 weeks. Vision sells 225 lenses per week. The following data are available: Relevant ordering costs per purchase order $41.25 Relevant insurance, materials handling, breakage, and so on, per year $ 4.50 What is the economic order quantity for Vision? a. 328 lenses b. 457 lenses c. 161 lenses d. 266 lenses
Steve's scooters plans to sell a standard scooter for $160 and a chrome scooter for $200.00. Steve's purchases the standard scooter for $40 and the chrome scooter for $50. Steve expects to sell one standard scooter for every three chrome scooters. Steve's monthly fixed costs are $102, 600. How many of each type of scooter must Steve's scooters sell each month to break even?
Aydesurv CompanyAydesurv Company currently sells hot dogs. During a typical month, the stand reports a profit of ₱9,000 withsales of ₱50,000, fixed costs of ₱21,000, and variable costs of ₱0.64 per hot dog.Next year, the company plans to start selling nachos for ₱3 per unit. Nachos will have a variable cost of ₱0.72and new equipment and personnel to produce nachos will increase monthly fixed costs by ₱8,808. Initial sales ofnachos should total 5,000 units. Most of the nacho sales are anticipated to come from current hot dog purchasers,therefore, monthly sales of hot dogs are expected to decline to ₱20,000.After the first year of nacho sales, the company president believes that hot dog sales will increase to ₱33,750 amonth and nacho sales will increase to 7,500 units a month.32. Determine the monthly breakeven sales in dollars before adding nachos.33. Determine the monthly breakeven sales during the first year of nachos sales, assuming a constant salesmix of 1 hotdog and 2 units of…
Night Shades Inc. (NSI) manufacturers biotech sunglasses. These sunglasses sell for $150 each, and cost $70 each to produce. Night Shades Inc. has fixed costs of $100,000.a. Calculate Night Shades' Breakeven point.b. how much profit (loss) will Night Shades have if it sells 500 sunglasses? 4,000 sunglasses?c. Night Shades' manager expects an operation profit of $200,000. How many sunglasses must be sold to attain this profit?
Lush Lawn, Incorporated produces and sells electric lawn trimmers for $150 each. The variable costs of each mower total $110 while total monthly fixed costs are $6,240. Current monthly sales are $51,000. The company is considering a proposal that will decrease the selling price by 10%, increase monthly fixed costs by 50%, and increase unit sales to 500 units per month. Required: a. Compute the company's current break-even point in units and dollars. b. What is the company's current margin of safety in units, dollars, and percentage? a. Break-even point a. Break-even sales b. Margin of safety b. Margin of safety in dollars b. Margin of safety in ratio units unit %
An auto parts supplier sells batteries to car dealers and auto mechanics. The annual demand is approximately 1,200 batteries. The suppliers pays $28 for each battery and estimates that the annual holding cost is $8.40 per year. It costs approximately $20 to place an order. Assume a 250-day working year. a. Compute for the EOQ round off your answer to the nearest whole number. b. Compute for the expected number of orders. Round off your answer to the nearest whole number. c. Compute for the expected time between orders. Round off your answer to the nearest whole number.
Tinatoots Store sells dumbbells for P79.99 a pair. The store consistently sells 5,700 pairs of these dumbbelis every year. The fixed costs to order more skates is P68 andthe carrying costs are P1.95 per pair. 8. What is the economic order quantity?
To make a product it costs $24 per liter. The importation cost is a fixed cost of $ 150 additional of the unit costs. The time that takes from placing the order to receiving it is 5 weeks. During this time the average consumed is 80 liters with a std dev. of 4 liters. If the products ends the costs is $45 per liter. They work 52 weeks a year. The anual interest is 20% What is the order size and reorder point if we want to accomplish 90% of demand in the cycles? What is the order size and reorder point if we want to minimize average costs? what would be service level type 2?
Answer it as early as possible?
Vince's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are $48,000. The sales price averages $9, and it costs the firm $3 to make and deliver each pizza. Required: A. How many pizzas must Vince's sell to break even? B. How many pizzas must the company sell to earn a target profit of $54,000? C. If budgeted sales total 9,900 pizzas, how much is the company's safety margin in dollars?