Initially, the contribution margin for a good is 74.94. If fixed costs are $1191and an anticipated 588 units are being sold, how much can the price of thegood drop before this business should shut down in the short run (assumingcosts stay the same)?Answer:

BEP (in units) = Fixed cost / Contribution per unitFixed costs = $1191Contribution…

Answered: Initially, the contribution margin for…

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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Total fixed cost of a product is IDR 10,000,000 and variable cost is IDR 50,000 per unit. The sale price is IDR.75,000 per unit . How much products should be produced to get BEP? Prove your answer and make a graphic. ..And If the company need profit IDR 10,000,000. How much is the sales price? Prove your answer.
How much will company have to cut cost per unit?
Suppose Morrison Corp.’s breakeven point is revenues of $1,100,000. Fixed costs are $660,000. Q1. Compute the contribution margin percentage. Q2. Compute the selling price if variable costs are $16 per unit. Q3. Suppose 75,000 units are sold. Compute the margin of safety in units and dollars. Q4. What does this tell you about the risk of Morrison making a loss? What are the most likely reasons for this risk to increase?
1. Bramble corp. plans to…
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The manufacturer of a product that has a variable cost of $2.50 per unit and total fixed cost of $117,000 wants to determine the level of output necessary to avoid losses. What level of sales is necessary to break-even if the product is sold for $4.35? Round your answer to the nearest whole number. units What will be the manufacturer’s profit or loss on the sales of 104,000 units? Round your answer to the nearest dollar. $ If fixed costs rise to $164,000, what is the new level of sales necessary to break-even? Round your answer to the nearest whole number. units If variable costs decline to $2.25 per unit, what is the new level of sales necessary to break-even? Round your answer to the nearest whole number. units If fixed costs were to increase to $164,000, while variable costs declined to $2.25 per unit, what is the new break-even level of sales? Round your answer to the nearest whole number. units If a major proportion of fixed costs were noncash (depreciation), would…
Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Their current full cost for the product is $44 per unit.In order to meet the new target cost, how much will the company have to cut costs per unit, if any? a.$1 b.$2 c.$3 d.$0
1.
Referring to question 13, if the company had an opportunity to sell 15,000 additional units at $12 per unit, and the additional sales would not affect its current expected sales, should the company take this special order? (Show work for credit) A. Yes can make $30,000 B. Yes can make $90,000 C. No will lose $30,000 D. No will lose $90,000 The lowest contribution margin per scarce resource is the most profitable. A. True B. False A cost that will not be affected by later decisions is termed an opportunity cost. A. True B. False Eliminating a product or segment may have the long-term effect of reducing fixed costs. A. True B. False Differential revenue is the amount of income that would result from the best available alternative proposed use of cash. A. True B. False In deciding whether to accept business at a special price, the short-run price should be set high enough to cover all variable costs and expenses. A. True B. False
D) is what i need assistance with
22 )

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Initially, the contribution margin for a good is 74.94. If fixed costs are $1191 and an anticipated 588 units are being sold, how much can the price of the good drop before this business should shut down in the short run (assuming costs stay the same)? Answer: