Gibson Company produces a product that sells for $29 per unit and has a variable cost of $11 per unit. Gibson incurs annual fixed costs of $97,200.**Required**a. Determine the sales volume in units and dollars required to break even. *Note: Do not round intermediate calculations.*b. Calculate the break-even point assuming fixed costs increase to $160,200. *Note: Do not round intermediate calculations.*| | ||---|---|| a. Sales volume in units | || a. Sales in dollars | || b. Break-even units | || b. Break-even sales | |

Break-even point is the point of sales at which no gain or loss is incurred by the company.

Answered: Gibson Company produces a product that…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Thornton Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $44. 12 Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative 17 per unit 6 per unit $152,000 per year $102,100 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $178,500. c. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 21,400 units, how much could it pay in salaries for salespeople and still have a profit of $178,500? (Hint Use the equation method.) a. Break-even point in units Break-even point in dollars b Required sales in units Required sales in dollars C Fixed cost of salaries
Atlantic Company sells a product with a break-even point of 3,517 sales units. The variable cost is $115 per unit, and fixed costs are $140,680. Determine the: a. Unit sales price b. Break-even point in sales units if the company desires a target profit of $55,440 units
Radison Inc. sells a product for $91 per unit. The variable cost is $51 per unit, while fixed costs are $230,400. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $99 per unit. a. Break-even point in sales unitsfill in the blank 1 unitsb. Break-even point if the selling price were increased to $99 per unitfill in the blank 2 units
Break-Even Point Nicolas Inc. sells a product for $94 per unit. The variable cost is $63 per unit, while fixed costs are $207,576. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $99 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $99 per unit units
2. Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The company’s monthly fixed expenses are $22,500. The following names are to be considered when completing this problem: Operating Income Variable Costs Sales Fixed Costs per Unit Selling Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Operating Loss What is the company’s break-even point in units? . Use commas as needed (i.e. 1,234). What is the company’s break-even point in dollars? . Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Using the names listed above, construct a contribution margin income statement for the month of September when they will sell 900 units. Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Maple Enterprises Contribution Margin Income Statement For the Month of September How many units will Maple need to sell in…
The Atlantic Company sells a product with a break-even point of 4,369 sales units. The variable cost is $65 per unit, and fixed costs are $144,177. Determine the unit sales price. Round answer to nearest whole number.$fill in the blank 1 Determine the break-even point in sales units if the company desires a target profit of $39,204. Round answer to the nearest whole number.fill in the blank 2 units
blanc Inc. sells a product for $67 per unit. The variable cost is $41 per unit, while fixed costs are $160,888. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $75 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $75 per unit fill in the blank 2 units
Break-Even Point Nicolas Enterprises sells a product for $55 per unit. The variable cost is $38 per unit, while fixed costs are $26,588. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $61 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $61 per unit fill in the blank 2 units
In a cost-volume-profit analysis, explain what happens at the break-even point and why companies do not want to remain at the break-even point. Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The company’s monthly fixed expenses are $36,000. A. What is the company’s break-even point in units? B. What is the company’s break-even point in dollars? C. Prepare a contribution margin income statement for the month of November when they will sell 130 units. D. How many units will Marlin need to sell in order to realize a target profit of $48,000? E. What dollar sales will Marlin need to generate in order to realize a target profit of $48,000? F. Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.
Silver River Company sells Products S and T and has made the following estimates for the coming year: Product Unit Selling Price Unit Variable Cost Unit Contribution Margin S $30 $24 60% 70 56 40 Note: "E" represents composite unit. Fixed costs are estimated at $202,400. For the purposes of break-even analysis, determine the following: a. Break-even sales (units) for E. Round interim calculations to two decimal places. units b. Break-even sales (units) of S and T. units units c. Sales units of E necessary to realize an operating income of $119,600 for the coming year. units
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Gladstorm Enterprises sells a product for $46 per unit. The variable cost is $29 per unit, while fixed costs are $19,227. Determine the following: Round your answers to the nearest whole number. a. Break-even point in sales units fill in the blank 1 units b. Break-even point in sales units if the selling price increased to $58 per unit fill in the blank 2 units

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