Sopot Swim Co. manufactures and sells swimming suits. The foxed costs of operating the company we $100.000 per month and variablecosts are $10 per swimming suit. The swimming suits are sold for $20 per unit. The production city is 120.000 caps per month. Whatis the break-even point in sales dollars?$10.$120,000$200,000O $500,000O $10.000

Introduction: Break-even point in sales dollars indicates the level of sales that is required to be…

Answered: Sopot Swim Co. manufactures and sells…

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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Anderson Inc. uses packing machines to prepare their product for shipping. One machine costs $136,000 and lasts about 5 years before it needs to be replaced. The operating cost per machine is $6,500 a year. Ignoring taxes, what is the equivalent annual cost of one packing machine if the required rate of return is 11%? Multiple Choice $49,904 $51,036 $44,298 $43,298 $50,776
A shoe manufacturer produces a pair of shoes at a labor cost of P10.00 + (01/100) and material cost of P25.00 + (01/100). The fixed charges on the business are P15,000 a month and variable costs are P2.00 a pair. If the shoes sell to retailers for P50.00 a pair, how many pairs must be produced and sold each month for the manufacturer to break even?Kindly provide a COMPLETE and CLEAR solution.
Sea-Jet Companies produces jet skis. Variable direct costs total $ 2,000 per unit. Variable indirect costs total $ 600 per unit. Fixed overhead costs total $ 700,000. The company pays sellers a commission of $ 400 per unit sold. Total fixed costs for the period add up to $ 200,000. Each watercraft sells for $ 5,000. The company taxes its earnings at 25%. How many $ do you have to sell to make $ 180,000 profit before tax
rally synthesis inc. manufactures and sells 100 bottles per day. fixed costs are $22,000 and the variable costs for manufacturing 100 bottles are $30,000. Each bottle is sold for $1,200. how would the daily profit be affected if the daily volume of sales drop by 10%?
2. Suppose you manufacture and sell motorcycle helmets. Helmets sell for $25 each. Information about the company's costs is as follows Variable manufacturing cost per unit Variable selling and administrative cost per unit Fixed manufacturing overhead per month Fixed selling and administrative cost per month $7 $3 $300,000 $600,000 e) Determine the sales volume required to reach an income of $1,300,000 in units of helmets. f) Estimate the company's monthly operating loss if it sells only 70,000 units of helmets.
Craylon Manufacturing produces a single product that sells for $100. Variable costs per unit equal $25. The company expects total fixed costs to be $60,000 for the next month at the projected sales level of 1,000 units. The operating income for the next month is : Select one: a. 15,000 b. 60,000 c. 135,000 d. 75,000
(c) Jack's Auto manufactures clectric compact cars at $15,000 per unit. The company sells the cars at a price of $45,000 per unit. The fixed cost per month for the company is S120,000. Find the breakeven quantity and revenue.
firm has fixed cost of $50,000 per month and variable manufacturing costs of $1.25 per unit. They sell their units for $3.25 each. What is the annual sales volume units required to break even? Multiple Choice 300,000 30,000 10,400 2.500
Roseberg Theater sells tickets for dinner and a show for $60 each. The cost of providing dinner is $31 per ticket and the fixed cost of operating the theater is $65,000 per month. The company can accommodate 15,000 patrons each month. What is the contribution margin ratio? 51.67% 207% 48.33% 40.00%
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Long Range Company provides computer repairs. Long Range charges $35/hour for repair work. Variable costs are $21/hour and fixed costs are $78,000. Next year, Long Range expects to charge out 12,000 hours of computer repair work. What is the break-even point in sales dollars? $420,000 O $195,000 $252,000 $342,000 O $130,000

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