Pioneer Manufacturing has fixed costs of $60,000 and variable costs of $40 per unit. If they sell each unit for $100, how many units must be sold to earn a target profit of $40,000? (Round your answer)

Pioneer Manufacturing has fixed costs of $60,000 and variable costs of $40 per unit. If they sell each unit for $100, how many units must be sold to earn a target profit of $40,000? (Round your answer)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...

See similar textbooks

Related questions

Q: Need general account solution

A: Step 1: the Accounting EquationThe basic accounting equation is: Assets=Liabilities+Owner's Equity…

Q: None

A: Geisner's Equity:Equity = Total Assets - Total Liabilities= $1,000,000 - $600,000= $400,000…

Q: Multiple choice Question

A: Concept of Accounting Principle:An accounting principle is a general guideline or rule that governs…

Q: General accounting question please given answer

A: Step 1: Definition of Absorption Costing and Variable CostingAbsorption Costing is a method that…

Q: Production estimates for July for Starling Co. are as follows: Estimated inventory (units), July 1…

A: To calculate the total direct materials purchases for Materials A and B for July, we need to…

Q: Provide answer

A: Explanation of Equivalent Units:Equivalent units refer to the number of fully completed units that…

Q: Press Printing uses process costing. Department A had 3,700 units in beginning work in process (60%…

A: To calculate the cost per equivalent unit using the Weighted Average Method in process costing,…

Q: Kindly help me with accounting questions

A: Explanation: The formula to calculate the inventory turnover ratio is = Cost of goods sold/Average…

Q: Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000…

A: To perform a differential analysis, we calculate the incremental costs and revenues associated with…

Q: Hii expert please given correct answer general Accounting

A: Step 1: Define Financial RatiosFinancial ratios, like the current ratio, debt-to-equity ratio, etc.,…

Q: Hello tutor please provide correct answer financial accounting question

A: Step 1: Define Capital WeightsIn the context of weighted average cost of capital (WACC), capital…

Q: Need help with this general accounting question

A: Step 1: Use the formula for the adjusted basisStep 2: Rearrange the formula to solve for Capital…

Q: Account.

A: Step 1: Define the Formula for Variance PercentageThe formula to calculate the variance percentage…

Q: The journal entry to record direct labor worked on a particular job involves a A) debit to…

A: The correct answer is:A) debit to Work-In-Process Inventory and credit Salaries and Wages Payable.…

Q: Please give me answer general accounting question

A: To calculate free cash flow (FCF), we use the following formula: FCF=EBIT(1−Tax…

Q: What is the cash balance

A: Step 1: Definition of Cash DisbursementsDisbursements of cash refer to cash payments made by a…

Q: A company performed $8,635 of services and received $3,000 in cash with the remaining amount to be…

A: Correct Answer:B. $8,635 increase in Assets; No effect on Liabilities; $8,635 increase in…

Q: ?!

A: Calculation of the Amount of Manufacturing Overhead allocated for the year based on Machine…

Q: Question

A: Solution= beginning owner's equity + net income - ending owner's equity= $47,000 + $53,000 -…

Q: The cost of goods sold of rick company for the period is?

A: Given:Beginning inventory = $56,500Cost of purchase = $263,000Closing inventory = $68,000 Formula…

Q: Need help this question general accounting

A: Step 1: Formula Gross profit % = Gross profit/Sales Step 2: Sales Sales = Gross profit + Cost of…

Q: expert of general account. Solve

A: Step 1: Calculate Total Units Available• Formula: Beginning Inventory + Units Transferred In• This…

Q: Please give me true answer this general accounting question

A: Step 1: Define Labor Rate VarianceLabor Rate Variance is the difference between the actual hourly…

Q: Please given correct answer general accounting

A: Explanation for a: Income from operations can be calculated using the following formula:Income from…

Q: Can you please solve this general accounting problem?

A: Explanation: Units to be produced in October can be calculated using the following formula:Units to…

Q: answer this accounting problem

A: Explanation: There are two methods to calculate the total equivalent units for direct materials - 1.…

Q: General Accounting

A: Step 1: Define Recognized Gain on Sale of a Personal ResidenceWhen selling a personal residence, the…

Q: financial accounting question

A: Step 1: DefinitionRecognized Gain or Loss: The difference between the selling price and the cost…

Q: I don't need ai answer accounting questions

A: Inventory turnover ratio = Cost of goods sold / Average inventory Compute the cost of goods…

Q: General Accounting questions

A: Step 1: Calculate Total Costs Step 2: Calculate Equivalent Units Step 3: Compute Cost per Equivalent…

Q: Answer the following requirements on these general accounting question

A: Step 1: Definition of Break-Even PointThe break-even point is the level of sales at which a company…

Q: Gross margin for August?

A: To calculate the gross margin, we need to subtract the cost of goods sold (COGS) from sales. Gross…

Q: What is the total sales volume variance and contribution margin?

A: Step 1: Define Sales Volume VarianceDifferences between the budgeted and actual quantity affecting…

Q: Congratulations! You are completing the final course of your accounting program. Now, it’s time for…

A: Key Takeaways from This CourseThe course has helped me reinforce advanced accounting practices,…

Q: General Accounting Question provide solution

A: Step 1: Define Annual Net Cash FlowThe Annual Net Cash Flow is the total cash generated from an…

Q: Hello tutor please solve this question

A: To compute the requested values using the DuPont formula, we'll break it down step by step. The…

Q: Given answer financial accounting question

A: Step 1: Define Gross ProfitGross profit can be defined as the difference between sales and the cost…

Q: Can you please answer the following requirements on these general accounting question?

A: Step 1: Define Definition of Equity Multiplier and Return on Equity (ROE)Equity Multiplier is a…

Q: Please given answer general accounting

A: Step 1:A. The break-even sales in units is calculated as follows: Break-even sales in units = Fixed…

Q: General Accounting question

A: Step 1: Identify the annual dividendStep 2: Identify the selling price and flotation costsStep 3:…

Q: Give general account ans

A: Options a, b, & cIncorrectrecall that direct materials, direct labor, and manufacturing overhead…

Q: Calculate the days sales in inventory?

A: Calculation of Days Sales in InventoryDays Sales in Inventory = ( Average Inventory / Cost of Goods…

Q: 4 POINTS

A: Definitions Related to the Question:1. Concept of Intangible Assets:Intangible assets are…

Q: Dave Ryan is the CEO of Ryan's Arcade. At the end of its accounting period, December 31, Ryan's…

A: Definition of Stockholders' EquityStockholders' equity (also called shareholders' equity or owners'…

Q: WHICH OF THE FOLLOWING IS A CHARACTERISTIC OF A CONTINGENT LIABILITY? A) CERTAIN TO OCCUR B) AMOUNT…

A: Concept of Contingent Liability:A contingent liability is a potential obligation that arises from…

Q: Expert need your help

A: Option 1: This option is incorrect because not all exploration costs are capitalized. In some cases,…

Q: Vicco Inc. has Assets of $296,155 and Liabilities of $81,959. The firm has 13,740 shares of stock…

A: Explanation: We are provided with the following data:Assets = $296,155; Liabilities = $81,959; No.…

Q: accounting SOLUTION WANT

A: The correct equation is:C. Ending inventory = Beginning inventory + Purchases - Cost of goods sold…

Q: Give correct option for following data of this general accounting question

A: Step 1:Sales also known as revenue from operations is the amount received from the sales of goods or…

Q: Dillard Company starts the year with $10,000 in its cash account, $10,000 in its equipment account,…

A: Concept of Retained Earnings:Retained earnings represent the cumulative profits or losses of a…

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

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.
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
If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.
Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?
Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?
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?
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.
Pioneer Manufacturing has fixed costs of $60,000 and variable costs of $40 per unit. If they sell each unit for $100, how many units must be sold to earn a target profit of $40,000? (Round your answer). General Account
?
Dove, Inc. produces a product that has a variable cost of $6.00 per unit. The company's fixed costs are $60,000. The product is sold for $9.00 per unit and the company desires to earn a target profit of $30,000. What is the amount of sales that will be necessary to earn the desired profit?need answer this question
What amount sales is necessary to earn desired profit?