Question 5Breakeven pointProduct 1Product 2 Product 3Product 4Product 5112011147 Selling priceUnit variable costFixed costs10 Target profit118.1691160001200900018000200008000120012001200120011 Breakeven in units12 Breakeven in Dollars13 Sales units needed to achieve the target profit14 The best product for this year151617181920

Lets understand the basics. Break even point is a point at which no loss no profit contribution…

Question 5 Breakeven point Product 1 Product 2 Product 3 Product 4 Product 5 11 11 20 11 14 Selling price Unit variable cost Fixed costs Target profit 8. 16 11 9000 18000 20000 8000 6000 1200 1200 1200 1200 1200 Breakeven in units 2 Breakeven in Dollars 3 Sales units needed to achieve the target profit 4 The best product for this year

Question 5 Breakeven point Product 1 Product 2 Product 3 Product 4 Product 5 11 11 20 11 14 Selling price Unit variable cost Fixed costs Target profit 8. 16 11 9000 18000 20000 8000 6000 1200 1200 1200 1200 1200 Breakeven in units 2 Breakeven in Dollars 3 Sales units needed to achieve the target profit 4 The best product for this year

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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QUESTION 20 Total Per unit Sales Revenue (30,000 units) $750,000 $25 Variable Costs A $450,000 $15 Contribution Margin $300,000 Fixed Costs $150,000 Operating Income $150,000 Now assume that this company's selling price per unit and variable cost per unit stay the same while total fixed costs increases by $100,000 per year. This company's breakeven point will: O increase O decrease remain the same
PROBLEM SET B Problem 21-1B Cost estimation using high-low method P1 Sun Co.'s monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Units Sold 1.... 2.... 195.000 125,000 3.... 105,000 4.... 155,000 5.... 95,000 6.... 215,000 Month Total Cost $ 97,000 87,000 73,000 89,000 81,000 110,000 Month 7 ... 8... 9... 10 ... 11 ... 12 ... Units Sold 145,000 185,000 135,000 85,000 175,000 115,000 Total Cost $ 93,000 105,000 85,000 58,000 95,000 79,000 Required 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. 2. Use the answers for variable and fixed costs from part 1 to predict future total costs when sales volume is (a) 100,000 units and (b) 170,000 units. Analysis Component page 799 3. Use these data to prepare a scatter diagram. Draw an estimated line of cost behavior and determine whether the cost appears to be variable, fixed, or mixed.
20 Sales Contribution margin Fixed costs (1) Compute the degree of operating leverage (DOL) for each company. (2) Which company is expected to produce a greater percent increase in income from a 10% increase in sales? Required 1 Required 2 $ 7,825,600 6,375,600 4,989,600 Complete this question by entering your answers in the tabs below. Skittles's DOL Starburst's DOL Compute the degree of operating leverage (DOL) for each company. Degree of Operating Leverage $ Contribution margin $ Numerator: $ 3,828,000 1,428,000 918,000 Answer is complete but not entirely correct. 6,375,600 1,428,000 I $ 1 $ Denominator: Income II 2,910,000 = = 2,836,000 = Ratio Degree of Operating Leverage 2.25 0.49
Question 13 Break-Even Sales Currently, the unit selling price of a product is $220, the unit variable cost is $180, and the total fixed costs are $336,000. A proposal is being evaluated to increase the unit selling price to $240. a. Compute the current break-even sales (units).fill in the blank 1 units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $240, and all costs remain constant.fill in the blank 2 units
How many units of A should be produced to maximize the profit of company?
Exercise 18-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $330 and of each door is $760. The variable cost of each window is $190 and of each door is $480. Fixed costs are $940,800. (1) Compute the weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin (3) Compute the number of units of each rpoduct that will be sold at the break-even point
Unit VI question 6
Exercise 3-15A (Algo) Multiple product break-even analysis LO 3-6 Fanning Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Required Super $.92 (60) a. Total number of products b. Product Super b. Product Supreme $32 Supreme $ 127 Fanning expects to incur annual fixed costs of $199,100. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme. (81) units units units $.46 a. Determine the total number of products (units of Super and Supreme combined) Fanning must sell to break even. b. How many units each of Super and Supreme must Fanning sell to break even? Note: For all requirements, do not round intermediate calculations.
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