Answered: If fixed costs are $500,000 and the…

If fixed costs are $500,000 and the unit contribution margin is $40, what is the break-even point if fixed costs are increased by $80,000? A. 14,500 B. 12,500 C. 8,333 D. 9,667

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: If sales are $28,000 , variable costs are $ 8,000 , and fixed costs are $4,000 , the contribution…

A: The contribution margin can be calculated by using this equation Contribution margin ratio…

Q: Assume a sales price per unit of $25, variable cost per unit $21, and total fixed costs of $161280.…

A: Break even point = Fixed cost / Contribution margin ratio Contribution margin ratio = (selling…

Q: If sales are $22,000, variable costs are $8,000, and fixed costs are $2,500, the contribution margin…

A: The contribution margin ratio shows the percentage of sales revenue remaining after the business has…

Q: If fixed costs are $276,000, the unit selling price is $117, and the unit variable costs are $76,…

A: Given the following information: Question 1): Fixed costs: $276,000 Selling price per unit: $117…

Q: Question: A manufacturing company has a fixed cost of $120,000 and a variable cost per unit of $8.…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

Q: Bramble Corp. has a product with a unit selling price of $100, the unit variable cost is $40, and…

A: Lets understand the basics.Contribution margin ratio shows contribution earned in compared to sales…

Q: he selling price of a particular product is $37.00 per unit, fixed costs total $225,600, and the…

A: Break even sales = Fixed costs/Contribution margin ratio Contribution margin ratio = Fixed…

Q: Assume a sales price per unit of $25, variable cost per unit $21, and total fixed costs of $154560.…

A: Contribution margin per unit = Selling price - Variable cost Contribution margin ratio =…

Q: If fixed costs are $793,000 and variable costs are 63% of sales, what is the break-even point in…

A: The answer for above question is given below:

Q: If fixed costs are $306,000, the unit selling price is $71, and the unit variable costs are $54,…

A: Break-even point refers to the point where the number of units sold is just sufficient to cover the…

Q: What volume of sales dollars is required to earn a target income of $340000 if total fixed costs are…

A: BREAK EVEN POINTSBreak Even Points is a point of production or sales revenue where there is no…

Q: 2.B. Red Rose Company MOH Budget for January, 2022 Variable costs: Indirect Material (5 TL per DL…

A: The flexible budget report is prepared to find the variance between flexible budget and actual…

Q: What is the value of revenue to breakeven? Units Revenue - Variable Cost - Contribution Margin -…

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…

Q: If the selling price per unit is $15, the unit contribution margin is $5, and total fixed expenses…

A: Introduction: Break even sales units: It tells the level of sales units where there is no profit nor…

Q: If fixed costs are $805,000 and variable costs are 64% of sales, the break-even point in sales…

A: Break-even analysis is the easiest form of cost-volume-profit analysis. Break-even analysis is used…

Q: Company XY Sales are 6 800 000 € and fixed costs are 2 400 000 €. Variable costs are 4 284 000 €.…

A: Contribution margin = Sales - Variabl costs Contribution margin % = Contribution margin / Sales

Q: 6. BREAKEVEN FOR SINGLE PROJECT Given: FC = P30,000 per month v = P25 per unit r= P35 per unit…

A: The break even sales are the sales where business earns no profit or loss during the period.

Q: The BEP is 5000 units, the price per unit is P60 and the variable cost per unit is P20. What is the…

A: Formulas: Break even point = Fixed costs /Contribution margin per unit where, Contribution margin…

Q: With i = 15% and n = 10, what is the uniform annual cost if initial cost is P25k and decrease of…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Given the following information, what is the revenue break- even point? Selling price per unit…

A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…

Q: The contribution margin ratio is 30%. If total fixed costs are $24,000, then what is the total cost…

A: Variable cost per unit = sales price x (1 - contribution margin ratio) = $2 x (1 - 0.30) = $1.40…

Q: Looking at the graph, which of the following statements must be true?

A: Answer: (2nd Option ) The CM Breakeven point per unit is $ 10.52.

Q: what is the break-even point in sales units if fixed costs are increased by $31,100? a.20,698 units…

A: Break Even Point in Units = Fixed Costs / Contribution Per Unit Current Fixed Cost = $1435000 New…

Q: fixed costs are $613,000 and the unit contribution margin is $6.00, the break-even point in units if…

A: Solution: Breakeven point in units = Fixed costs / Contribution margin per unit New contribution…

Q: 4. How much is the increase in operating income if 150 units will be sold instead of 100 units?

A: Operating Income Operating income is the adjusted revenue of a business after all operating costs…

Q: Calculate Operating Leverage from the following ?Contribution = 100,000 Fixed Cost = 40,000 a. 2.5…

A: Solution: net operating income = Contribution - Fixed cost = 100000 - 40000 = 60000

Q: Given the following projected contri income statement for the coming y Sales (100 units) P10.000

A: Answer : Operating income if only 80 units will be sold : Selling price per unit = 10,000 / 100 =…

Q: 10. If the selling price is £20 per unit, variable costs are £5 per unit and fi £9,000, the BEP…

A: Break even point is where there is no loss no profit conditions and all costs are covered and but…

Q: What is the break-even price?

A: It is pertinent to note that break-even point is the point where the entity does not make any profit…

Q: Suppose Al-Basra company s break even point in amounts of $ 110000, and fixed costs are $ 660000.…

A: Contribution margin is a financial metric that measures the profitability of an individual unit.…

Q: Given the following projected contribution income statement for the coming year: Sales (100 units)…

A: Contribution margin=Sales-Variable costsOperating income=Contribution margin-Fixed costs

Q: An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, and…

A: Break Even Point may be defined as the point where the total revenue and the total costs are equal.…

Q: Question If cost is represented by C(x) = 1.8x + 10,000 and revenues are represented by R(x) = 8.5x,…

A: Break-even point -The point at which revenue and costs are equal—that is, when there is no profit…

Q: t is 1000 TL, the unit variable cost is 2 TL, and the sales price of the product is 3 TL, what is…

A: Break Even Point -: Break Even point is simply a stage in a production when the cost or expense…

Q: How much sales are required to earn a target net income of $210000 if total fixed costs are $300000…

A: Calculation of Target Contribution :- = Target Net Income + Fixed Costs =$210000 + $300000 =$510000…

Q: for the estimated total costs how did you get 4,500,000 , 5,100,000 , 5,000,000?

A: In the query, Calculation of Total estimated costs is to be elaborated. We have, 2020 2021 2022…

Q: The contribution margin ratio is 30%. If total fıxed costs are $24,000, then what is the total cost…

A: Variable cost per unit = Selling price x (1 - contribution margin ratio) = $2 x (1-0.30) = $1.4 per…

Q: During the year, the total fixed costs amounted to P60,000 when the contribution margin is 40% of…

A: Solution Fixed cost ratio to sales = contribution margin ratio - operating income % of sales = 40% -…

Q: L. From the following data, calculate break-even point expressed in terms of units and also the new…

A: 1.Fixed cost :Depreciation = SR200,000Salaries = SR50,000Variable expenses:Materials = SR10 per…

Q: If fixed costs are $859,000 and variable costs are 60% of sales, the break-even point in sales…

A: Break Even Point in Sales Dollar = The Break-even point is the point where the company has recovered…

Q: If fixed costs are $1,214,000, the unit selling price is $204, and the unit variable costs are $109,…

A: Break-even sales (units) = Total fixed costs / Contribution margin per unit Contribution margin per…

Q: Harry styles Itd has 3 production Departments( A, B & C) and 2 service departments( X & Y) The…

A: The service department cost is allocated to various production departments on the basis of different…

Q: What is the break even point in dollars if annual fixed costs are 114,000 and CTO is 0.65?

A: Break-even point: It can be defined as the production level at which the firm incurs no losses and…

Question

If fixed costs are $500,000 and the unit contribution margin is $40, what is the break-even point if fixed costs are increased by $80,000?

A.
14,500

B.
12,500

C.
8,333

D.
9,667

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 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

18. The contribution margin per unit is P5, while the direct fixed costs are P30,000 and the allocated fixed costs are P60,000. What is the break-even point in units?
A company is considering a project with a cash break-even point of 25,394 units. The selling price is RM18 a unit, the variable cost per unit is RM8, and depreciation is RM89, 800. What is the projected amount of fixed costs? Select one: a. RM253,94O b. RM306,108 c. RM324,512 d. RM316,728
Analysis of a project: In determining the annual profit of a project the following information is used: Variable costs are S /. 10 per unit, fixed costs vary according to the level of production in the following image: If the sale price is S /. 24 and sales of 15,000 units are expected, in addition, an annual profit of S /. 140,000. How many additional units must be sold at a price of S /. 20?
15. Acacia Corporation would like to market a new product at a selling price of Ph 15 per unit. Fixed costs for this product are Ph 1,000,000 for less than 500,000 units of output and P1,500,000 for 500,000 or more units of output. The contribution margin percentage is 20%. How many units of this product must be sold to earn a target operating income of Ph 1 million? 825,530 833,334 754,900 O 785,320
39. If fixed costs are $288,000, the unit selling price is $35, and the unit variable costs are $15, what are the break-even sales (units) if fixed costs are reduced by $39,600? a.18,630 units b.9,936 units c.14,904 units d.12,420 units
Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin is $320,000 while the total fixed costs $80,000. If sales are expected to increase by 20% in the next period, how much would the new profit be ( $)? a. 336,000 b. 272,000 c. 400,000 d. 304,000 e. None of the given answers
For Waterway Industries at a sales volume of 5000 units, sales revenue is $67000, variable costs total $ 44000, and fixed expenses are $21000. What is the unit contribution margin? Select answer from the options below $4.20 $8.80 $9.20 $4.60
If fixed costs are $1,260,000, the unit selling price is $202, and the unit variable costs are $110, the break-even sales (units) if fixed costs are increased by $43,800 is a.14,172 units b.17,006 units c.11,337 units d.21,258 units
If fixed costs are $801,000 and variable costs are 66% of sales, the break-even point in sales dollars is a. $528,660 b. $3,156,882 c. $2,355,882 d. $1,329,660
Q3. If sales are $500,000, variable cost are $200,000, and fixed costs are $240,000, what is the contribution margin ratio? Answer: ______________________________________________________________________ Explain your answer: ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
3
If fixed costs are $283,000, the unit selling price is $72, and the unit variable costs are $51, what are the old and new break-even sales in units (rounded to a whole number) if the unit selling price increases by $5? a.3,931 units and 13,476 units b.13,476 units and 3,931 units c.5,549 units and 10,385 units d.13,476 units and 10,885 units