It has variable costs of $33 Problem: A certain product sells for $55. Ithas variable costs of $33 per unit and fixedcosts of $300,000 per year. How manyproducts must the company manufacture tobreak even? (Round your answer to nearestunit number)

Concept of Selling Price:The selling price is the amount a company charges customers for a single…

Answered: Problem: A certain product sells for…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 4P

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A certain product sells for $55. It has variable costs of $33 per unit and fixed costs of $300,000 per year. How many products must the company manufacture to break even?(Round your answer to nearest unit number)
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Break-even analysis Show all your solutions. 1. The Fixed Cost is P4,000. The material and labor costs are P4.00 per unit. The supplier’s selling price is P5.00 per unit. The break-even point is 2. Production has indicated that they can produce widgets at a cost of P4.00 each if they lease new equipment at a cost of P10,000. Marketing has estimated the number of units they can sell at a number of prices (Php4000) Which price/volume option will allow the firm to avoid losing money on this project? 3. A food repacking company estimates sales figures of Php15.5M for their most popular item. Assuming that the item sells at Php375 each, fixed costs are Php4M, and variable cost are Php215 per unit repacked. a. What is the break-even sales volume? b. Find the corresponding profit figures if the actual sales will be as estimated. 4. A manufacturer can sell a certain health supplement for P1,100 per unit. Its total cost consists of a fixed overhead of Php75,000 plus production costs of…
A CERTAIN PRODUCT SELLS FOR $55. IT HAS VARIABLE COSTS OF $33 PER UNIT AND FIXED COSTS OF $300,000 PER YEAR. HOW MANY THE PRODUCTS MUST COMPANY MANUFACTURE TO BREAK EVEN?
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Platt company has a fixed cost of £200,000 per annum producing external hard disks with aselling price £50 per unit. The variable cost of a hard disk is £40.The production capacity peryear is 25,000 hard disks.a. How many hard disks should Platt sell before it can break even? (Hint: Use ‘Goal seek’ toget this answer).b. Given Platt’s assumption, produce a one-way table to show how quantity sold would affectthe profit and elaborate on the relationship.c. Given Platt’s assumption, produce a two-way table and discuss how a change in salesvolume and variable cost jointly affect profitd. Please include a graph to supplement your explanation for 1b.e. Use the auditing toolbar to show the precedents of your current profit cell.

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Problem: A certain product sells for $55. It has variable costs of $33 per unit and fixed costs of $300,000 per year. How many products must the company manufacture to break even? (Round your answer to nearest unit number)