Rooney Company produces a product that sells for $36 per unit and has a variable cost of $12 per unit. Rooney incurs annual fixed costs of $151,200. Required a. Determine the sales volume in units and dollars required to break even. Note: Do not round intermediate calculations. b. Calculate the break-even point assuming fixed costs increase to $235,200. Note: Do not round intermediate calculations. a. Sales volume in units a. Sales in dollars b. Break-even units b. Break-even sales

Rooney Company produces a product that sells for $36 per unit and has a variable cost of $12 per unit. Rooney incurs annual fixed costs of $151,200. Required a. Determine the sales volume in units and dollars required to break even. Note: Do not round intermediate calculations. b. Calculate the break-even point assuming fixed costs increase to $235,200. Note: Do not round intermediate calculations. a. Sales volume in units a. Sales in dollars b. Break-even units b. Break-even sales

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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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?
When prices are falling (deflation), which costing method would produce the highest gross margin for the following? Choose first-in, first-out (FIFO); last-in, first-out (LIFO); or weighted average, assuming that B62 Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming B62 sold just one unit of these goods for $400. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Gibson Company produces a product that sells for $29 per unit and has a variable cost of $11 per unit. Gibson Incurs annual fixed costs of $97,200. Required a. Determine the sales volume in units and dollars required to break even. Note: Do not round Intermediate calculations. b. Calculate the break-even point assuming fixed costs Increase to $160,200. Note: Do not round Intermediate calculations. a. Sales volume in units a. Sales in dollars b. Break-even units b. Break-even sales
W Company sells only one product with a selling price of $200 and a variable cost of $80 per unit. The company’s monthly fixed expense is $60,000. Required: A) Determine the breakeven point in units sold and sales dollars. B) Determine the breakeven point in units sold and sales dollars if the company wants a net income of $30,000. C) Determine margin of safety if current sales are $175,000.
Radison Inc. sells a product for $52 per unit. The variable cost is $26 per unit, while fixed costs are $137,904. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $60 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $60 per unit fill in the blank 2 units
White Lake Inc. produces and sells a single product. Data concerning that product appear below: Selling price per unit $ 230.00 Variable expense per unit $ 103.50 Fixed expense per month $ 518,650 Required: a. What is the minimum amount of sales revenues in dollars to break even? b. Assume the company's monthly target profit is $12,650. Determine the number of units that White Lake needs to sell to attain this target profit?
Lablanc Inc. sells a product for $116 per unit. The variable cost is $60 per unit, while fixed costs are $1,185,408. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $123 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $123 per unit fill in the blank 2 units
Frisch Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit Variable expense per unit Fixed expense per month $ 170.00 $ 83.30 $138,720 Required: Show all calculations and formulas and present your work in good accounting form as illustrated in the lectures. a) Determine the monthly b) Determine the monthly break-even in units? break-even in dollars?
Mauro Products distributes a single product, a woven basket whose selling price is $15 and whose variable expense is $12 per unit. The company’s monthly fi xed expense is $4,200. Required: a)Solve for the company’s break-even point in unit sales using the formula method. b) Solve for the company’s break-even point in sales dollars using the formula method and the CM ratio
Radison Enterprises sells a product for $57 per unit. The variable cost is $26 per unit, while fixed costs are $248,899. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $63 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $63 per unit fill in the blank 2 units
S1.
Mauro Products distributes a single product, a woven basket whose selling price is $15 and whose variableexpense is $12 per unit. The company’s monthly fixed expense is $4,200.Required:1. Solve for the company’s break-even point in unit sales using the equation method.2. Solve for the company’s break-even point in sales dollars using the equation method and theCM ratio.3. Solve for the company’s break-even point in unit sales using the formula method.4. Solve for the company’s break-even point in sales dollars using the formula method and theCM ratio.