Selling Price per Unit: Happy boots sells hiking boots and has the following price/cost detail: 10 Total Fixed Costs: 12,000 Variable Costs per Unit: 6 Relevant Range of Production: 0 - 12,000 unit 1) Calculate the Breakeven point in units. 2) Calculate the Breakeven point in dollars. 3) How many units need to be sold to earn a target income of $6,000? Consider each of the following situation independently: 4) If variable costs decrease by $1.00, calculate the new breakeven in units. 5) If the selling price is decreased to $8, calculate the new breakeven in units. 6) If the fixed costs increase by $2,000, calculate the new breakeven in units.
Selling Price per Unit: Happy boots sells hiking boots and has the following price/cost detail: 10 Total Fixed Costs: 12,000 Variable Costs per Unit: 6 Relevant Range of Production: 0 - 12,000 unit 1) Calculate the Breakeven point in units. 2) Calculate the Breakeven point in dollars. 3) How many units need to be sold to earn a target income of $6,000? Consider each of the following situation independently: 4) If variable costs decrease by $1.00, calculate the new breakeven in units. 5) If the selling price is decreased to $8, calculate the new breakeven in units. 6) If the fixed costs increase by $2,000, calculate the new breakeven in units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
not use ai please
Transcribed Image Text:Selling Price per Unit:
Happy boots sells hiking boots and has the following price/cost detail:
10
Total Fixed Costs:
12,000
Variable Costs per Unit:
6
Relevant Range of Production: 0 -
12,000 unit
1) Calculate the Breakeven point in units.
2) Calculate the Breakeven point in dollars.
3) How many units need to be sold to earn a target income of $6,000?
Consider each of the following situation independently:
4) If variable costs decrease by $1.00, calculate the new breakeven in units.
5) If the selling price is decreased to $8, calculate the new breakeven in units.
6) If the fixed costs increase by $2,000, calculate the new breakeven in units.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education