EXERCISE 1: BREAK-EVEN POINT IN UNITS AND IN REVENUE For this exercise, use the following information: • Total fixed costs are estimated at $100,000. • Total units expected to be sold are 50,000. • Total variable costs are $300,000. • Unit selling price is $8.00. EXERCISE 3: BREAK-EVEN POINT IN UNITS AND IN REVENUE Using the information in Exercise 1, if rent were increased by $25,000 and variable costs and unit selling price remained unchanged, what would be the new PV ratio and break-even point in units and in revenue?

EXERCISE 1: BREAK-EVEN POINT IN UNITS AND IN REVENUE For this exercise, use the following information: • Total fixed costs are estimated at $100,000. • Total units expected to be sold are 50,000. • Total variable costs are $300,000. • Unit selling price is $8.00. EXERCISE 3: BREAK-EVEN POINT IN UNITS AND IN REVENUE Using the information in Exercise 1, if rent were increased by $25,000 and variable costs and unit selling price remained unchanged, what would be the new PV ratio and break-even point in units and in revenue?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 17E

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EXERCISE l: BREAK EVEN POINT IN UNITS AND IN REVENUE Unit selling price 248.00 Unit variable costs (6.00) ($300,000-50,000) $2.00 Unit contribution margin Fixed Costs: $100,000 Calculate the following: 1. Break-even point in units 2. Break-even point in revenue EXERCISE 2: BREAK-EVEN POINT IN UNITS AND IN REVENUE Using the information in Exercise 1, if rent were iıncreased by S25,000 and variable costs and unit selling price remained unchanged, what would be the new PV ratio and break- even point in units and in revenue?
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Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $101 per unit, and fixed manufacturing costs are $128,700. Sales are estimated to be 7,800 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 7,800 units and a plan to produce 9,900 units? b. How much would variable costing operating income differ between the two production plans? $ 0
Evaluate the quantity at which revenue equals to costs (break-even point). <use Goal seek> Assumptions: Fixed cost: 5000 Material costs per item: 2.25 Labor costs per item: 6.5 Shipping costs per 100 items: 200 Price per item: 12.99
1. The following data pertains to activity and utility cost for two recent periods:Activity level (units) 8,000 5,000Utility cost $8,000 $6,500Utility cost is a mixed cost with both fixed and variable components. Using the high-lowmethod, the cost formula for utility cost is:A. Y = $1.00 XB. Y = $1.25 XC. Y = $4,000 + $0.50 XD. Y = $1,500 + $1.25 X
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $86 per unit, and fixed manufacturing costs are $193,200. Sales are estimated to be 6,900 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 6,900 units and a plan to produce 9,200 units? X b. How much would variable costing operating income differ between the two production plans? ✓
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $85 per unit, and fixed manufacturing costs are $125,400. Sales are estimated to be 5,500 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 5,500 units and a plan to produce 6,600 units? b. How much would variable costing operating income differ between the two production plans? Feedback
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $99 per unit, and fixed manufacturing costs are $215,600. Sales are estimated to be 7,700 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 7,700 units ard a plan to produce 9,800 units? b. How much would variable costing operating income differ between the two production plans? 0 Feedback Check My Work a. Remember that under variable costing, regardless of whether 7,700 units or 9,800 units are manufactured, no fixed manufacturing costs are allocated to the units manufactured. Instead, all fixed manufacturing costs are treated as a period expense. Therefore the change in units times the per unit fixed costs for the greater production level is the difference in income between the two costing methods. b. Remember that since all…
A. APPLY THE CONCEPTS: Determine the mixed costs Costs that display characteristics of both fixed and variable costs simultaneously are called "mixed costs." The rental agreement on a piece of machinery stipulates an annual fee of $6,000 plus $2 for each hour of use. To illustrate, assume the manager wants to know what mixed costs will be at 7,000 hours of operation. Fixed Cost + (Variable Cost per Unit x Number of Units) = Mixed Cost $________________ + $_____ x 7,000 hours) = $___________ For this scenario, calculate the mixed costs at different levels across the relevant range, then graph them. Hours of Operation Mixed Cost 0 hours $________________ 4,000 $________________ 9,000 $________________ 12,000 $________________ 15,000 $________________ B. Based on the data from the table completed above, select the graph that correctly represents the mixed cost data. (selections in screenshot)
If the variable cost is P15/unit, fixed cost is 265,000; and Sales is P55. Find the BEPs, and BEPx. Use the Target Profit Analysis Equation Method. Compute for the following: • Contribution Margin Ratio • Break-Even Point in Sales • Break-Even Point in Units IMPORTANT NOTE: PLEASE REFER TO THE GIVEN LESSON. USE THE FORMULA FROM THE LESSON IN THE PHOTE ATTACHED. THANK YOU. I will give you upvote for this.
Compute the missing amounts. (Enter the contribution margin ratio to nearest percent, X%.) A Sale price per unit $2,100 Variable costs per unit 840 Total fixed costs 1,045,800 Target profit 1,600,200 Calculate: Contribution margin per unit Contribution margin ratio % Required units to break even Required sales dollars to break even Required units to achieve target profit