Sunland Industries sells two electrical components with the following characteristics. Fixed costs for the company are $837,000 peryear.XL-709CD-918Sales price$25$40Variable cost1832Sales volume90,400 units226,000 units(a)Your answer is correct.How many units of each product must Sunland Industries sell in order to break even? (Round answers to O decimal places, e.g. 5,275.)(b)Break even unitseTextbook and MediaYour answer is incorrect.XL-70931000CD-91877500Attempts: 1 of 3 usedSunland's vice president of sales has determined that due to market changes, the sales price of component XL-709 can beincreased to $29 with no impact on sales volume. What will be Sunland's new breakeven point in units?New Break even point in unitseTextbook and MediaSave for LaterXL-709CD-918Attempts: 1 of 3 used Submit Answer

Answer (a):1. Calculate the contribution margin per unit for each product:Contribution Margin =…

Answered: Sunland Industries sells two electrical…

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 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...

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Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs per gas grill are 225, and the average price per gas grill is 600. Required: 1. How many gas grills must Gelbart Company sell to break even? 2. If Gelbart Company sells 46,775 gas grills in a year, what is the operating income? 3. If Gelbart Companys variable costs increase to 240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?
Company XYZ produces and sells headphones. The company has total fixed costs of $112,000. Each headphone sells for $315 per unit and has variable costs of $225 per unit. Next year XYZ Company wishes to earn an operating income that equals 90% of fixed costs. How many units must be sold to achieve this target income level? (rounded to the nearest number) Select one: O a. 2,364 O b. 1,244 O c. 394 O d. 124 O e. 207
Adams Enterprises produces a product with fixed costs of $49,900 and variable cost of $2.70 per unit. The company desires to earn a $26,000 profit and believes it can sell 11,000 units of the product. Required a. Based on this information, determine the target sales price. Note: Round your answer to 2 decimal places. Target sales price per unit
WRT Disk company sells its disks for $107 per unit. Total fixed costs are $197,000 and variable costs are $32 per unit. Calculate the number of units to be sold to earn a pretax income of $224,500. (A) 2627 (B) 2993 (C) 5,620 (D) 5000
Sheridan Recreation Products sells the Amazing Foam Frisbee for $19. The variable cost per unit is $6; fixed costs are $26,000 per month. (a) Your Answer Correct Answer Your answer is correct. What is the breakeven point in units? In sales dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars. Round answers to O decimal places, eg. 5,275) The breakeven point The breakeven sales (b) eTextbook and Media Solution $ eTextbook and Media Save for Later 2000 frisbees 38000 How many frisbees must Sheridan sell to earn $39,000 in monthly operating income? (Round answer to O decimal places, eg. 5,275) frisbees Attempts: unlimited Attempts: unlimited Submit Ar (c) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the part above.
Lablanc Inc. sells a product for $500 per unit. The variable cost is $350 per unit, while fixed costs are $1,170,000. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $550 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 $550 per unit fill in the blank 2 units
Can you please give answer?
Company XYZ is a car navigation system manufacturer. The company sells each unit for $400. The variable manufacturing cost per unit is $100 while the variable selling and administrative cost per unit is $50. The fixed manufacturing cost is $4,000 while the fixed selling and administrative cost is $6,000. Calculate the number of units needed to achieve an operating profit of $8,000. (round to the nearest number) 40 Ob. None of the given answers O c. 51 O d. 33 О е. 72
A6) Finance XYZ is a retailer and sells 179,000 units per year. It purchases from a single supplier. Fixed costs per order are $868 and carrying cost is $11 per unit. How many units should XYZ purchase per order? That is, what is the Economic Order Quantity? Enter your answer rounded off to two decimal points. Margin for error: +/- 1
D) Nuevo Company manufactures a product which sells for P5. At present, the company produces and sells 50,000 units per year. Unit variable manufacturing and marketing expenses are P2.50 and P.50 respectively. Fixed expenses are P70,000 for tactonY overhead and P30,000 for marketing and administration. The sales manager hos proposed that the price be increased to P6. To maintain the present sales volume. advertising must be increased. The company's profit objective is 10% of sales. 2. Compute the additional expenditure the company can afford for advertising. E) The annuUal FC amounted to P798,000. At present, the contribution margin ratio is 42%. 3. Determine the amount of sales if the desired profit is P173,800 net of the ff. fax rates: For the first P100,000 25% In excess of P100,000 35% F) Bosh Company expects to incur the following costs to produce and sell 70,000 units of its product: Variable manufacturing cost Fixed manufacturing cost Variable marketing expense Fixed marketing…
Company XYZ produces and sells headphones. The company has total fired costs of $112,000. Each headphone sells for $70 per unit and has variable costs of $50 per unit. Next year XY7 Company wishes to eam an operating income that equals 20% of fixed costs. How many units must be sold to achieve this target income level? (rounded to the nearest numben) Select one: O a 1,120 O b. 5,600 Oc 933 O d. 6,720 O e 4480
Company XYZ is a car navigation system manufacturer. The company sells each unit for $800. The variable manufacturing cost per unit is $100 while the variable selling and administrative cost per unit is $50. The fixed manufacturing cost is $4,000 while the fixed selling and administrative cost is $6,000. Calculate the number of units needed to achieve an operating profit of $8,000. (round to the nearest number) O a. 28 O b. 40 None of the given answers O d. 72 O e. 51

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