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Samy Inc. operated at its normal capacity during the current year, producing 75,000 units of its single product. Sales totalled 65,000 units at an average price of $20 per unit. Variable cost of goods sold amounted to $7 per unit, and sales commissions were paid out at $5 per unit sold. Fixed product costs, incurred uniformly throughout the year, amounted to $203,000 and fixed period costs, incurred uniformly, amounted to $33,000 per quarter. Required: 1. Compute Samy's break-even point in sales dollars for the current year. (Do not round intermediate calculations. Round your answer to the nearest whole number.) × Answer is complete but not entirely correct. Break-even point in sales in dollars $ 837,500 x 2. If Samy's fixed product costs unexpectedly increase by 15%, what is the new unit selling price that would yield the same break-even sales as before the cost increase? (Do not round intermediate calculations and round your answer to 2 decimal places.) Answer is complete and correct. New sales price $ 20.73 per unit

Samy Inc. operated at its normal capacity during the current year, producing 75,000 units of its single product. Sales totalled 65,000 units at an average price of $20 per unit. Variable cost of goods sold amounted to $7 per unit, and sales commissions were paid out at $5 per unit sold. Fixed product costs, incurred uniformly throughout the year, amounted to $203,000 and fixed period costs, incurred uniformly, amounted to $33,000 per quarter. Required: 1. Compute Samy's break-even point in sales dollars for the current year. (Do not round intermediate calculations. Round your answer to the nearest whole number.) × Answer is complete but not entirely correct. Break-even point in sales in dollars $ 837,500 x 2. If Samy's fixed product costs unexpectedly increase by 15%, what is the new unit selling price that would yield the same break-even sales as before the cost increase? (Do not round intermediate calculations and round your answer to 2 decimal places.) Answer is complete and correct. New sales price $ 20.73 per unit

FINANCIAL ACCOUNTING
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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Samy Inc. operated at its normal capacity during the current year, producing 75,000 units of its single product. Sales totalled 65,000 units at an average price of $20 per unit. Variable cost of goods sold amounted to $7 per unit, and sales commissions were paid out at $5 per unit sold. Fixed product costs, incurred uniformly throughout the year, amounted to $203,000 and fixed period costs, incurred uniformly, amounted to $33,000 per quarter. Required: 1. Compute Samy's break-even point in sales dollars for the current year. (Do not round intermediate calculations. Round your answer to the nearest whole number.) × Answer is complete but not entirely correct. Break-even point in sales in dollars $ 837,500 x 2. If Samy's fixed product costs unexpectedly increase by 15%, what is the new unit selling price that would yield the same break-even sales as before the cost increase? (Do not round intermediate calculations and round your answer to 2 decimal places.) Answer is complete and correct. New sales price $ 20.73 per unit
Transcribed Image Text:Samy Inc. operated at its normal capacity during the current year, producing 75,000 units of its single product. Sales totalled 65,000 units at an average price of $20 per unit. Variable cost of goods sold amounted to $7 per unit, and sales commissions were paid out at $5 per unit sold. Fixed product costs, incurred uniformly throughout the year, amounted to $203,000 and fixed period costs, incurred uniformly, amounted to $33,000 per quarter. Required: 1. Compute Samy's break-even point in sales dollars for the current year. (Do not round intermediate calculations. Round your answer to the nearest whole number.) × Answer is complete but not entirely correct. Break-even point in sales in dollars $ 837,500 x 2. If Samy's fixed product costs unexpectedly increase by 15%, what is the new unit selling price that would yield the same break-even sales as before the cost increase? (Do not round intermediate calculations and round your answer to 2 decimal places.) Answer is complete and correct. New sales price $ 20.73 per unit
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