Rooney Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs %24 75 20% $450,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $45,000, what must the sales be in dollars? In units? c. If the sales price increases to $80 and variable costs do not change, what is the new break-even point in dollars? In units? a. Break-even point in dollars Break-even point in units b. Sales in dollars Sales in units c. Break-even point in dollars Break-even point in units

Rooney Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs %24 75 20% $450,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $45,000, what must the sales be in dollars? In units? c. If the sales price increases to $80 and variable costs do not change, what is the new break-even point in dollars? In units? a. Break-even point in dollars Break-even point in units b. Sales in dollars Sales in units c. Break-even point in dollars Break-even point in units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Atlantic Company sells a product with a break-even point of 6,148 sales units. The variable cost is $71 per unit, and fixed costs are $178,292. Determine the following:
Please do not give solution in image format thanku
Cost Volume Profit (CVP) Relationships (Algo) You are provided with the following data. Unit sales Selling price per unit Variable expenses per unit Fixed expenses Target Profit 80,000 units $70 per unit $ 28 per unit $ 2,688,000 $ 1,610,000 Required: Compute the CM ratio and variable expense ratio. Compute the break-even. Compute the target profit. Compute the margin of safety with the original data. Compute the degree of operating leverage with the original data. Use the Degree of Operating Leverage to determine the new Net Operating Income if sales increase by: 16% 1. Use the Open Excel in New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.
Current Attempt in Progress Wildhorse Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing "pouches" and small, standardized delivery boxes (which provides a 20% contribution margin). The other 20% of its revenue came from delivering non-standardized boxes (which provides a 70% contribution margin). With the rapid growth of Internet retail sales, Wildhorse believes that there are great opportunities for growth in the delivery of non-standardized boxes. The company has foxed costs of $13,868.100 Sales mix is determined based upon total sales dollars. (a) What is the company's break-even point in total sales dollars? At the break-even point, how much of the company's sales are provided by each type of service? (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places eg.0.22 and round final answers to O decimal places, eg 2.510) Total break-even sales Sale of mail pouches and small boxes Sale of non-standard…
2. Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The company’s monthly fixed expenses are $22,500. The following names are to be considered when completing this problem: Operating Income Variable Costs Sales Fixed Costs per Unit Selling Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Operating Loss What is the company’s break-even point in units? . Use commas as needed (i.e. 1,234). What is the company’s break-even point in dollars? . Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Using the names listed above, construct a contribution margin income statement for the month of September when they will sell 900 units. Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Maple Enterprises Contribution Margin Income Statement For the Month of September How many units will Maple need to sell in…
Compute the contribution margin ratio and fixed costs using the following data. Sales $4,600 Variable costs $ 2,944 Income $ 540 Less: Sales Variable cost Contribution margin Numerator: Fixed Cost 1 Contribution Margin $ Contribution Margin Ratio Denominator: 1 4,600 2,944 = Contribution Margin Ratio Contribution margin ratio 0
Please answer competely
Please find the answers
• Use the below information to fill out the income statement and answer the questions 4-10 below: Selling Price per Unit Number of Units Total Dollars Sales Revenue $40.00 Variable Costs |600,000 Contribution Margin Fixed Costs 240,000 Net Income If OPEARATING LEVERAGE is 5 4. What is Net Income ?
Mars Company has the following information: Total Fixed cost OMR 25000 Selling price per unit OMR 40 Variable cost per unit OMR 25, What will be the correct amount of Margin of safely at a profit of OMR 12000? Select one: O a. OMR 37000 b. OMR 30000 O c. OMR 19200 O d. OMR 32000
with sales per unit of 300, variable cost per unit of 180, Total fixed cost of 75,000 and target profit of 300,000 how do i find required sales to break even?
How do you calculate the break-even point in sales? Contribution margin fixed costs Fixed costs total sales Profit variable costs Fixed costs contribution margin % 0,000