Narchie sells a single product solve this accounting questions Narchie sells a single product for $60. Variable costs are 60% of the sellingprice, and the company has fixed costs that amount to $480,000. Currentsales total 17,000 units.If Narchie breaks even by selling 20,000 units, after the break-even pointeach unit that Narchie sells will:a. increase profit by some other amount.b. increase profit by $24.c. increase profit by $60.d. decrease profit by $6.e. increase profit by $36.

Step 1: Define Relevant RangeWhen calculating the break-even point, it's essential to consider the…

Answered: Narchie sells a single product for $60.…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EA: Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of...

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Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.
Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.
Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.
Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
Narchie sells a single product for $50. Variable costs are 70% of the selling price, and the company has fixed costs that amount to $478,500. Current sales total 25,000 units.Each unit that Narchie sells will: A. increase profit by some other amount. B. increase profit by $35. C. increase profit by $15. D. decrease profit by $3. E. increase profit by $50.
Gladstorm Enterprises sells a product for $48 per unit. The varlable cost is $32 per unit, while fxed costs are $10,560. Determine the following: Round your answers to the nearest whole number. a. Break-even point in sales units units b. Break-even point in sales units if the selling price Increased to $62 per unit units
Mia Enterprises sells a product for $90 per unit. The variable cost is $40 per unit, while fixed costs are $75,000. Determine the following: units a. Break-even point in sales units b. Break-even point in sales units if the selling price increased to $100 per unit units
Gladstorm Enterprises sells a product for $46 per unit. The variable cost is $30 per unit, while fixed costs are $12,096. Determine the following: Round your answers to the nearest whole number. a. Break-even point in sales units b. Break-even point in sales units if the selling price increased to $58 per unit units units
Gladstorm Enterprises sells a product for $50 per unit. The variable cost is $34 per unit, while fixed costs are $9,856. Determine the following: Round your answers to the nearest whole number. a. Break-even point in sales units units b. Break-even point in sales units if the selling price increased to $62 per unit units
Versa Inc. sells a product for $100 per unit. The variable cost is $75 per unit, and fixed costsare $45,000. Determine (a) the break-even point in sales units and (b) the break-even point insales units if the company desires a target profit of $25,000.

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