Problem 7-3 Calculating Break-EvenIn each of the following cases, find the unknown variable. Ignore taxes. (Do not roundintermediate calculations and round your answers to the nearest whole number, e.g.,32.)AccountingBreak-EvenUnit PriceUnit Variable Cost Fixed CostsDepreciation25,000 $24 $10$225,000120,000142,400,0001,200,000es12,00025140,00040,000

Accounting break even is calculated by dividing sum of fixed and depreciation by contribution…

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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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Subject : accounting
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QS 18-15 (Static) Interpreting a CVP chart LO P2 Solve for each of the items below. Dollars $25,000 $20,000 $15,000 $10,000 $5,000 $0 (b) 0 200 400 600 (c) (d). 1. Units produced at break-even point 2. Dollar sales at break-even point 3. Capacity in units 4. Are fixed costs greater than $10,000? 5. If 1,400 units are produced and sold, is there a profit or a loss? (a) (e) 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 Units produced and sold
H5. Account
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4:53 PM A Qo VOLTE 4G TEll fx Fixed expenses = total contribution margin A Complete the following 3 Wk 3 Financial Exercises: Problem Set 2, Part 2 problems using the following ratios: 1 Sales level at which operating income is zero o If sales above breakeven, then profit o If sales below breakeven, then loss o Fixed expenses = total contribution margin 4 5 Total sales = total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio 6 7 8 B. N3
Unit VI question 6
Problem 5 - 19 (Algo) Break - Even Analysis; Pricing [LO5 - 1, LO5 - 4, LO5-5] Last year Anthony Fauci Ltd. introduced a new product and sold 25, 300 units of it at a price of $94 per unit. The product's variable expenses are $64 per unit and its fixed expenses are $837,300 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break - even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2 (e.g., $68, $66, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break - even point in unit sales and in dollar sales using the selling price that you determined in requirement 3?
Exercise 6-7 Target Profit Analysis (LO6-6] Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The company's monthly fixed expense is $31,800. Required: 1. Calculate the unit sales needed to attain a target profit of $6,700. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $9,600. (Round your intermediate calculations to the nearest whole number.) 1. Units sales to attain target profit units 2. Dollar sales to attain target profit
Problem 5-4&5 The Lucas Inn has room and food operations. The rooms operation provides 65 percent of the total revenue and has variable costs of 25 percent. The food operation provides 35 percent of the total revenue and has variable costs of 60 percent. The total annual fixed costs are $300,000. 4. What is the breakeven point? (use 2 decimal places for dollars and cents) 478087.65 5. Revenue required for $100,000 profit with 20% tax rate. (use 2 decimal places for dollars and cents) 677290.84

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