Next year, a business estimates that it will sell 30,000 units at a selling price of $15 per unit. Variable costs per unit are 40% of the selling price, and the business estimates that it will make a profit of $100,000. Calculate the fixed costs of the business for next year.

Next year, a business estimates that it will sell 30,000 units at a selling price of $15 per unit. Variable costs per unit are 40% of the selling price, and the business estimates that it will make a profit of $100,000. Calculate the fixed costs of the business for next year.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web...

See similar textbooks

Related questions

Q: Tata company uses predetermined overhead rate

A: Concept of Predetermined Overhead RateThe Predetermined Overhead Rate is an estimated cost…

Q: Sunshine Blender Company sold 7,000 units in October at a sales price of $40 per unit. The variable…

A: 1.To calculate the total contribution margin, find the difference between total sales revenue and…

Q: On June 1, 2017, Waterway Industries was started with an initial investment in the company of…

A: Assets are resources owned by the company. From the given data, the assets of Waterway Industries…

Q: Anderson Corp. pays its employees every Friday for work performed through that Friday. Anderson…

A: Explanation of Payroll Expense: Payroll expense refers to the cost of employee compensation…

Q: What is the cost of goods sold

A: Cost of goods sold = Beginning inventory + Purchases - Ending inventoryCost of goods sold = 950,600…

Q: General accounting

A: Step 1: Define Cash BalanceThe cash balance represents the amount of cash a company has on hand at…

Q: No AI ANSWER

A: the firm's 14.61% sustainable growth rate suggests that it can develop without requiring changes to…

Q: What is the note's principal of this financial accounting question?

A: To determine the note's principal, we use the simple interest formula:Interest = Principal × Rate ×…

Q: ??

A: Step 1: DefinitionsOperating Leverage - Operating leverage is a financial ratio that measures a…

Q: HELP

A: Step 1:Introduction Flexible budget is the budget which change with change in activity.Variable cost…

Q: Please solve this accounting problem not use ai and chatgpt

A: Step 1: Definition of FIFO (First-In, First-Out) Inventory MethodFIFO (First-In, First-Out) is an…

Q: Provide accounting answer

A: Step 1: Definition of Production Requirement CalculationThe production requirement for a given month…

Q: I want to correct answer accounting questions

A: To determine the incremental free cash flow (FCF) in year 3, follow these steps: Step 1: Calculate…

Q: Right Answer

A: Concept of Net IncomeNet income represents the total profit a company earns after deducting all…

Q: NO AI ANSWER

A: A static budget is based on a single level of activity, while a flexible budget adjusts costs based…

Q: None

A: Step 1: Definition of Lower of Cost or Market (LCM)The Lower of Cost or Market (LCM) rule is an…

Q: Please see an attachment for details general accounting question

A: Step 1: Define Operating Cash Flow (OCF)Operating Cash Flow (OCF) measures the cash generated from a…

Q: Provide answer

A: Explanation of Sales Forecast: Sales forecast represents the projected revenue a company expects to…

Q: None

A: Given Data:Debt-to-Equity Ratio (D/E) = 0.65Return on Assets (ROA) = 8.5% (or 0.085 in decimal…

Q: The controller of Afton Manufacturing has collected the following monthly expense data for use in…

A: Step 1: Definition of High-Low MethodThe high-low method is used to separate fixed and variable…

Q: Financial Accounting Question need help with this accounting question

A: Step 1: Return on Assets (ROA)Return on Assets (ROA) measures how efficiently a company utilizes its…

Q: Chawla Enterprises' fixed monthly expenses are $29,500, and its contribution margin ratio is 60%.…

A: Explanation of Fixed Monthly Expenses: Fixed monthly expenses are costs that remain constant…

Q: Provide accurate Answer

A: Concept of Predetermined Overhead RateThe predetermined overhead rate is an estimated rate used to…

Q: Expert of Account Solve this asap

A: Step 1: Definition of Variance AnalysisVariance analysis is the process of measuring the difference…

Q: For the current fiscal year, Purchases were $380,000, Purchase Returns and Allowances were $12,000,…

A: Explanation of Purchases: Purchases represent the total cost of merchandise acquired by a business…

Q: determine the total materials variance.

A: Step 1: Definition of Total Materials VarianceTotal materials variance is the difference between the…

Q: Question

A: Concept of Sales RevenueSales revenue represents the total income a company generates from selling…

Q: Determine the variable cost per gross ton mile

A: Step 1: Identify the months with the highest and lowest cost and activity.From the given data, we…

Q: Solve the following requirements on these financial accounting question

A: Step 1: Definition of Cost of Goods Sold (COGS) and Gross MarginCost of Goods Sold (COGS) represents…

Q: Please provide correct answer general accounting question

A: Step 1: Define Price Per Share in an IPOThe initial public offering (IPO) price per share is the…

Q: rjrj

Q: Martin's Home Furniture made Net Sales Revenue of $150,000, and the Cost of Goods Sold (COGS)…

A: Step 1: Definition of Gross Profit PercentageGross profit percentage, also known as gross margin…

Q: Hamilton Corp. recently reported an EBITDA of $18.5 million and a net income of $3.6 million. The…

A: Step 1: Definition of Depreciation and Amortization (D&A)Depreciation and Amortization (D&A)…

Q: F. Acc prblm

A: Explanation of Debt-to-Equity Ratio: The debt-to-equity ratio is a financial leverage ratio that…

Q: Get correct solution this accounting question

A: Step 1: Define High-Low MethodThe High-Low Method is a cost estimation technique used in managerial…

Q: ??

A: It takes Azure Manufacturing 90 days to turn its inventory and other resource investments into sales…

Q: Need help with this question solution general accounting

A: Step 1: Definition of Cost of Unused CapacityThe cost of unused capacity refers to the cost of…

Q: please given answer of this General accounting question

A: Step 1: Define Cash Receipts from Accounts Receivable CollectionsCash receipts from accounts…

Q: Choose the correct option

A: SolutionThe debt-to-equity ratio (D/E) is calculated using the formula:Debt-to-Equity Ratio = Total…

Q: Quick answer of this accounting question

A: Step 1: Definition of Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) represents the total direct…

Q: greenfield manufacturing?

A: Step 1: Definition of Gross ProfitGross profit is the financial metric that represents the…

Q: Please provide correct solution and accounting

A: Step 1: Definition of Money Creation and Reserve RequirementThe money creation process occurs when…

Q: Correct answer

A: Explanation of Activity-Based Costing (ABC): Activity-based costing is a costing methodology that…

Q: What is the annual operating cash flow for this financial accounting question?

A: Step 1: Define Annual Operating Cash FlowThe annual operating cash flow (OCF) represents the net…

Q: !?

A: Concept of Overhead CostsOverhead costs are the indirect expenses incurred in the production process…

Q: Get correct solution with explanation for this accounting question

A: Step 1: Define Beginning Work-in-Process (WIP) InventoryBeginning Work-in-Process (WIP) Inventory is…

Q: need help this question

A: Step 1: Definition of Equivalent Units of Production for Direct MaterialsEquivalent units of…

Q: Correct answer

A: The magnitude of operating leverage (MOL) measures how a company's operating income responds to…

Q: Want answer

A: Concept of Available-for-Sale (AFS) SecuritiesAvailable-for-Sale (AFS) Securities are financial…

Q: Need answer

A: Given: Static budget (60,000 labor hours):Variable overhead = $300,000Fixed overhead =…

Question

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 by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

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.
Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000
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?
Caduceus Company is considering the purchase of a new piece of factory equipment that will cost $565,000 and will generate $135,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return In Excel, see Appendix C.
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.
Next year, a business estimate that it will....
Jasmine Inc. makes a single product that it sells for $25 each. Variable costs are $13 per unit and annual fixed costs total $30,000 per year. The company would like to realize operating income next year of $60,000. What level of sales in dollars must the company achieve to reach its target profit?
How many units must be sold to earn an annual profit of $60000?
On the average, a company has a work-in-process lead time of 10 weeks and annualcost of goods sold of $30 million. Assuming that the company works 50 weeks a year:a. What is the dollar value of the work-in-process?b. If the work-in-process could be reduced to 5 weeks and the annual cost of carryinginventory was 20% of the WIP inventory value, what would be the annual savings?
Summit Industries has annual fixed costs of $180,000 and variable costs of $5 per unit. Each unit currently sells for $20. If Summit expects to sell 15,000 units this year, what will the operating profit (or loss) be if the sales price decreases by 25%?
A Mobile shop sells 5000 mobiles in a year and the sales is relatively constant throughout the year. These mobiles are purchased for SR 150.00 each, and the lead time is two days. The holding cost per mobile per year is 6% of the unit cost and the ordering cost per order is SR 37.50. There are 250 working days per year. Calculate the following: (i) What is the annual holding cost? (ii) In minimizing the cost, how many orders would be made each year? (iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)? (iv) What is the time between orders? (v) What is the ROP?
What is the net income for the year?