Frontier Industries' break-even point in sales is $1,200,000,and its variable expenses are 65% of sales. If the companyearned $75,000 last year, sales must have amounted to:a. $1,414,286b. $1,350,000c. $1,275,000d. $1,125,000

Step 1: Calculation of Contribution Margin RatioSales is the sum of contribution margin and variable…

Answered: Frontier Industries' break-even point…

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 7BE: Margin of safety Jorgensen Company has sales of 380,000,000, and the break-even point in sales...

See similar textbooks

Similar questions

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?
What must have been the total sales
KR Corporation's break-even-point in sales is Rs. 900,000, and its variable expenses are 75% of sales. If the company lost Rs. 32,000 last year, sales must have amounted to:
answer
can you please solve this
Sabv Corporation's break-even-point in sales is $800,000, and its variable expenses are 70% of sales. If the company lost $30,000 last year, sales must have amounted to: Multiple Choice $770,000 $740,000 $700,000 $530,000
please give me answer is accounting
Solen Corporation's break-even-point in sales is $850,000, and its variable expenses are 80% of sales. If the company lost $35,000 last year, sales must have amounted to: $815,000 S780,000 $675,000 $645,000
i want to correct answer
What must have been the total sales on these general accounting question?
67) Sabv Corporation's break-even-point in salesis $675,000, and its variable expen ses are 75% of sales. If the company lost $24,000 last year, sales must have amounted to: A) $651,000 B) $579,000 C) $603,000 D) $471,000 Answer: B
Last year company A introduced a new product and sold 25,900 units at $97.00 per unit. The product variable expense $67.00 per unit with a fixed price expense of $835,500 per year. a. What is the product's net income or loss last year? b. What is the product break-even point in unit sales and dollar sales? c. Assume the company has conducted a market study that estimates it can increase sales by 5,000 units for each $2.00 reduction in its selling price. If the company would only consider increments of $2.00(e.g. $68,$66, etc) What is the maximum annual profit that can be earned on this product? What sales volume and selling price per unit generate the maximum profit? d. What would be the break-even point in unit sales and dollar sales using the selling price that was determined in the required letter c above? Thank you,

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

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

Publisher:

South-Western College Pub

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

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

Publisher:

South-Western College Pub

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

Frontier Industries' break-even point in sales is $1,200,000, and its variable expenses are 65% of sales. If the company earned $75,000 last year, sales must have amounted to: a. $1,414,286 b. $1,350,000 c. $1,275,000 d. $1,125,000