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mpany manufactures personal computers and tablets. Based on the latest information from the cost accountant, using the weighed-average variable cost per unit is $365. The company does not expect the sales mix to vary for the next y nts. ha ne Requirements 1. What is the number of units that must be sold each month to reach the breakeven point? 2. If the company currently sells 830 units per month, what is the margin of safety in units and dollars? 3. If Pithe Computer Company desires to make a profit of $29,200 per month, how many units must be sold? 4. Pithe Computer Company thinks it can restructure some costs so that fixed costs will be reduced to $72,270 per month, but the weighted-average variable cost per unit will increase to $511 per unit. What is the new breakeven point in units? Does this increase or decrease the margin of safety? Why or why not? Print Done - X ter a "0" for a hits

mpany manufactures personal computers and tablets. Based on the latest information from the cost accountant, using the weighed-average variable cost per unit is $365. The company does not expect the sales mix to vary for the next y nts. ha ne Requirements 1. What is the number of units that must be sold each month to reach the breakeven point? 2. If the company currently sells 830 units per month, what is the margin of safety in units and dollars? 3. If Pithe Computer Company desires to make a profit of $29,200 per month, how many units must be sold? 4. Pithe Computer Company thinks it can restructure some costs so that fixed costs will be reduced to $72,270 per month, but the weighted-average variable cost per unit will increase to $511 per unit. What is the new breakeven point in units? Does this increase or decrease the margin of safety? Why or why not? Print Done - X ter a "0" for a hits

FINANCIAL ACCOUNTING
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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Po.38.
Pithe Computer Company manufactures personal computers and tablets. Based on the latest information from the cost accountant, using the current sales mix the weighted average sales price per unit is $730 and the weighed-average variable cost per unit is $365. The company does not expect the sales mix to vary for the next year. Average fixed costs per month are $175,200 the surrenturne Read GTP Requirement 1. What is the number of units that must be sold each month to reach the breakeven point? Start by selecting the formula and entering the amounts to compute the breakeven point in units. (Complete all input fields Enter a "0" for any zero balances) Breakeven in units )+
Transcribed Image Text:Pithe Computer Company manufactures personal computers and tablets. Based on the latest information from the cost accountant, using the current sales mix the weighted average sales price per unit is $730 and the weighed-average variable cost per unit is $365. The company does not expect the sales mix to vary for the next year. Average fixed costs per month are $175,200 the surrenturne Read GTP Requirement 1. What is the number of units that must be sold each month to reach the breakeven point? Start by selecting the formula and entering the amounts to compute the breakeven point in units. (Complete all input fields Enter a "0" for any zero balances) Breakeven in units )+
mpany manufactures personal computers and tablets. Based on the latest information from the cost accountant, using the weighed-average variable cost per unit is $365. The company does not expect the sales mix to vary for the next y nts. ha ne Requirements 1. What is the number of units that must be sold each month to reach the breakeven point? 2. If the company currently sells 830 units per month, what is the margin of safety in units and dollars? 3. If Pithe Computer Company desires to make a profit of $29,200 per month, how many units must be sold? 4. Pithe Computer Company thinks it can restructure some costs so that fixed costs will be reduced to $72,270 per month, but the weighted-average variable cost per unit will increase to $511 per unit. What is the new breakeven point in units? Does this increase or decrease the margin of safety? Why or why not? Print Done - X ter a "0" for a hits
Transcribed Image Text:mpany manufactures personal computers and tablets. Based on the latest information from the cost accountant, using the weighed-average variable cost per unit is $365. The company does not expect the sales mix to vary for the next y nts. ha ne Requirements 1. What is the number of units that must be sold each month to reach the breakeven point? 2. If the company currently sells 830 units per month, what is the margin of safety in units and dollars? 3. If Pithe Computer Company desires to make a profit of $29,200 per month, how many units must be sold? 4. Pithe Computer Company thinks it can restructure some costs so that fixed costs will be reduced to $72,270 per month, but the weighted-average variable cost per unit will increase to $511 per unit. What is the new breakeven point in units? Does this increase or decrease the margin of safety? Why or why not? Print Done - X ter a "0" for a hits
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