Answered: How many units must be sold to achieve…

Business

Accounting

How many units must be sold to achieve this goal? a.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Use this information for Carmen Co. to answer the question that follow. Carmen Co. can further…

A: Definition: Differential analysis: Differential analysis refers to the analysis of differential…

Q: Company XYZ produces and sells headphones. The company has total fixed costs of $112,000. Each…

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: Grace Co. can further process Product B to produce Product C. Product B is currently selling for $20…

A: Costs are deducted from revenues in order to calculate net income or loss. Differential revenue…

Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $10 per unit,…

A: Target sales = (Fixed Cost-Desired Income)/contribution per unit

Q: Jasmine Incorporated sells a product for $61 per unit. Variable costs per unit are $31, and fixed…

A: Break Even Point - It Is The Point Of Production Where Total Costs Is Equal To Total Revenue. At…

Q: #7 Banachek, Inc. produces hair brushes. The selling price is P20 per unit and the variable…

A: Introduction:- The following formula used to calculate Breakeven point as follows: Breakeven point…

Q: Alia Co. can further process Product X to produce Product Y. Product X is currently selling for $20…

A: Step 1: Definition of Differential Cost:If a company is faced with two or more alternatives, the…

Q: XYZ Company sells a product for $250. The variable cost is $150 per unit. The fixed costs are…

A: The cost volume profit analysis is helpful to analyze the number of units required to be sold to…

Q: Sunland Company manufactures and sells solar chargers for $50 each. Variable costs are $40 per unit,…

A: Break Even Sales is point at which no profit no loss is occurred. Formula: BEP (in amount) = Fixed…

Q: Acme Inc. sells Product Yellow for $23/unit. Variable costs for Product Yellow are $13/unit; fixed…

A: TARGET SALESTarget Sales are the Estimated Sales required to achieve the target net income. Target…

Q: COVID 19 Corp. sells two products. Product A sells for $200 per unit, and has unit variable costs of…

A: Selling price per unit: It is the price at which a unit of product is sold in the market. Variable…

Q: XYZ manufactures a computer stand. It has fixed costs of S600,000 and each stand sells for $90, with…

A: Selling price = $ 90 Variable cost = $ 48 Fixed cost = $600,000 Contribution per unit = Selling…

Q: Pepper Inc. produces lacrosse sticks. The selling price per stick is $42. Their variable cost per…

A: given that, Selling price per unit = $42 Variable cost per unit = $28 Fixed cost per unit = $12…

Q: CVP Drill #10 Shultz Company sells slides for $400 each. If the company's fixed costs total…

A: Break- even point is the point where there is no profit or loss. If we sell anything beyond this…

Q: Vista Company manufactures electronic equipment. It currently purchases the special switches used in…

A: The choice of whether or not to create a product in-house or to buy it from a third party is…

Q: Sunland Company sells MP3 players for $ 50 each. Variable costs are $ 40 per unit, and fixed costs…

A: Break-even sales are used to calculate the units to be sold to recover its cost of sales.It can be…

Q: Friar Corp. sells two products. Product A sells for $60 per unit, and has unit variable costs of…

A: 1.Contribution per unit = Selling price per unit - Variable cost per unit.2.Profit = Total…

Q: Campbell Enterprises produces a product with fixed costs of $53,400 and variable cost of $2.50 per…

A: Target sales price is the one which is charged by the entity, for selling goods, from its customers.…

Q: Betsy Company sells a single product. They want to make a profit of $50,641 Unit Variable costs $17…

A: Compute the Contribution margin per unit:

Q: Coronado Industries produces hair brushes. The selling price is $15 per unit and the variable costs…

A: Break even point :— It is the point of production where total cost is equal to total revenue. At…

Q: 4. Can Division of FP Inc. makes and sells tin cans externally for $0.60 per can. Its unit variable…

A: INTRODUCTION: A variable cost is one that fluctuates in accordance with either the volume of output…

Q: Sundial, Inc., produces two models of sunglasses-AU and NZ. the sunglasses have the following…

A: Contribution means the difference between the selling price and variable cost . Fixed cost when…

Q: Zulu sells its waterproof phone case for $114 per unit. Fixed costs total $222,000, and variable…

A: In case of target income, we will calculate units sold by putting x as units sold and then solving…

Q: COVID 19 Co. currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit,…

A: Units need to sell for desired profit = (Fixed costs + Desired profit) / Contribution margin per…

Q: XYZ manufactures a computer stand. It has fixed costs of S600,000 and each stand sels for $90, with…

A: Profit = Contribution margin - Fixed costs where, Contribution margin = Sales - Variable costs

Q: Carmen Co. can further process Product J to produce Product D. Product J is currently selling for…

A: Differential cost of producing a product means where product can be further processed and further…

Q: Basic illustration corp. produces and sells product X. The selling price is 25 and the variable cost…

A: Ans. The break even point is determined by dividing Fixed cost by contribution per unit.…

Q: A Toy store sells remote control car. The average selling price is SAR 15 and tin average variable…

A: The contribution margin refers the excess of selling price over variable cost. The contribution…

Q: On-the-Go, Inc., produces two models of traveling cases for laptop computers—the Programmer and the…

A: Working :- 1) Calculation of contribution margin per unit :- Selling price per bag - variable cost…

Q: Bonita Industries sells MP3 players for $40 each. Variable costs are $30 per unit, and fixed costs…

Q: Please explain your answer

A: The objective of the question is to understand the cost structure and profitability of Handy Home's…

Q: Home Run Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The…

A: Breakeven is the point where total expenses are equal to total revenue. At this point, there is no…

Q: Gotcha Covered manufactures and sells leather cases for cell phones. Each case sells for $80.…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: Grace Co. can further process Product B to produce Product C. Product B is currently selling for $24…

A: Revenue means the amount earned by selling the goods or services. Revenue is recognized in books of…

Question

Al Ameen Company sells television sets for RO 200. The variable cost is RO 100 per unit. The fixed costs are RO 350,000. The company wants to have a profit of RO 150,000. How many units must be sold to achieve this goal?

6,000 units

2,000 units

5,000 units

3,000 units

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Solution

VIEW

Step 3: Conclusion

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

ABX Inc. manufactures and sells compact disks. Price and cost data are as follows: Selling price per unit OMR 15 Variable cost per unit 7 Annual fixed costs 30,000 Required: 1. What is ABX's break-even point in units? 2. What is the companys break-even point in sales dollars? How many units would ABX have to sell in order to earn OMR 3. 25,000?
Can you help with the CVP Drill #6?
Choose the correct letter of answer Jan Slaugther Company produces and sells a particular home appliance. The variable cost (VC) per unit is P50. The unit selling price (SP) is P120 while fixed cost (FC) is P70,000. What is the profit function in this case? a. C = 50x + 70,000b. Answer not givenc. P = 120x – 50x – 70,000d. R = 120x
Vista Company manufactures electronic equipment. It currently purchases the special switches used in each of its products from an outside supplier. The supplier charges Vista $5.50 per switch. Vista's CEO is considering purchasing either machine A or machine B so the company can manufacture its own switches. The projected data are as follows: Annual fixed costs Variable cost per switch Machine A $632,400 1.78 Required: 1. For each machine, what is the minimum number of switches that Vista must make annually for total costs to equal outside purchase cost? 2. What volume level would produce the same total costs regardless of the machine purchased? 3. What is the most profitable alternative for producing 235,000 switches per year and what is the total cost of that alternative? Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Machine B $ 860,100 0.80 Minimum number of switches For each machine, what is the minimum number of switches that…
Cobb Co. can further process Product X to produce Product Y. Product X is currently selling for $30 per pound and costs $28 per pound to produce. Product Y would sell for $60 per pound and would require an additional cost of $24 per pound to produce. What is the net differential income from producing Product Y? (a)$6 per pound (b)a$8 per pound (c)$2 per pound (d)$30 per pound A
Vista Company manufactures electronic equipment. It currently purchases the special switches used in each of its products from an outside supplier. The supplier charges Vista $5.20 per switch. Vista 's CEO is considering purchasing either machine A or machine B so the company can manufacture its own switches. The projected data are as follows: Machine A Machine B Annual fixed costs $ 582, 450 $ 792, 100 Variable cost per switch 1.67 0.75 Required: 1. For each machine, what is the minimum number of switches that Vista must make annually for total costs to equal outside purchase cost? 2. What volume level would produce the same total costs regardless of the machine purchased? 3. What is the most profitable alternative for producing 230,000 switches per year and what is the total cost of that alternative?
ABC Ltd produces a single product. The selling price is OMR 50 a unit and the variable costs is OMR 30 a unit. The annual fixed costs of the business are OMR 5000. The business aims to make OMR 10000 profit during the forthcoming year. How many units must be sold to achieve this target profit? Select one: O a. None of the options O b. 550 Units O c. 500 Units O d. 750 Units
A company produces a special new type of TV. The company has fixed costs of $476,000, and it costs $1100 to produce each TV. The company projects that if it charges a price of $2600 for the TV, it will be able to sell 800 TVs. If the company wants to sell 850 TVs, however, it must lower the price to $2300. Assume a linear demand What is the maximum profit that can be reached? It is $ (Round answer to nearest cent).
ABC Ltd produces a single product. The selling price is OMR 50 a unit and the variable costs is OMR 30 a unit. The annual fixed costs of the business are OMR 4000. The business aims to make OMR 10000 profit during the forthcoming year. How many units must be sold to achieve this target profit? Select one: a. 200 Units b. None of the options c. 700 Units d. 500 Units
Parker Co. can further process Product J to produce Product D. Product J is currently selling for $21 per pound and costs $15.75 per pound to produce. Product D would sell for $35 per pound and would require an additional cost of $8.75 per pound to produce. What is the net differential income of producing Product D? $7 per pound $8.75 per pound $15 per pound $5.25 per pound
Best Windows is a small company that installs windows. Its cost structure is as follows: Selling price from each window installation $ Variable cost of each window installation Annual fixed costs Tax rate 450 $ 250 $ 175,000 40% Calculate the number of windows Best Windows must install and the revenues needed to earn a target net income of $72,000. *** Finally, calculate the revenues needed to earn a target net income or $72,000. Select the formula labels, then enter the amounts and calculate the revenues needed. Revenue required to achieve tarnet