Sunn Company manufactures a single product that sells for $110 per unit and whose variable costs are $88 per unit. The company's annual fixed costs are $308,000. Management targets an annual income of $550,000. (1) Compute the unit sales to earn the target income. Numerator: 1 1 Denominator: (2) Compute the dollar sales to earn the target income. Numerator: 1 1 Denominator: = = = Units to Achieve Target Units to achieve target Dollars to Achieve Target Dollars to achieve target

Sunn Company manufactures a single product that sells for $110 per unit and whose variable costs are $88 per unit. The company's annual fixed costs are $308,000. Management targets an annual income of $550,000. (1) Compute the unit sales to earn the target income. Numerator: 1 1 Denominator: (2) Compute the dollar sales to earn the target income. Numerator: 1 1 Denominator: = = = Units to Achieve Target Units to achieve target Dollars to Achieve Target Dollars to achieve target

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...

See similar textbooks

Related questions

Q: A firm manufactures a product that sells for $16 per unit. Variable cost per unit is $8 and fixed…

A: Selling price (S) = $16 Variable cost (V) = $8 Fixed cost (F) = $1680 Let the number of units = x…

Q: Drake Company produces a single product. Last year's income statement is as follows: Sales (23,000…

A: Break-even point: The break-even point refers to the situation of the organization where neither…

Q: Carla Vista Corporation has fixed costs of $270,500. It has a unit selling price of $6.60, unit…

A: Formulas: Sales units = (Fixed cost + Profit) / (Selling price - Variable cost)

Q: Bluegill Company sells 16,700 units at $260 per unit. Fixed costs are $217,100, and operating income…

A: Variable costs are those costs which changes directly with change in level of activity. Contribution…

Q: A company has $6.10 per unit in variable costs and $3.00 per unit in fixed costs at a volume of…

A: Difference between the selling price of the product and the cost of the product is called markup.…

Q: Bluegill Company sells 12,600 units at $140 per unit. Fixed costs are $88,200, and operating income…

A: Contribution margin: The difference between the sales and the variable costs is called contribution…

Q: Sunn Company manufactures a single product that sells for $130 per unit and whose variable costs are…

A: Formula: Contribution margin per unit = Selling price per unit - Variable cost per unit

Q: Bluegill Company sells 13,600 units at $140 per unit. Fixed costs are $95,200, and operating income…

A: Fixed costs are those costs that do not change with the output level. Total variable costs changes…

Q: Bluegill Company sells 15,500 units at $220 per unit. Fixed costs are $170,500, and operating income…

A: Total sales revenue - Variable cost = Contribution margin And Contribution margin - Fixed cost =…

Q: Information concerning a product produced by Rundle Company appears as follows. Sales price per…

A: Break even point :— It is the point of production where total cost is equal to total revenue. At…

Q: ooner Industries charges a price of $82 and has fixed cost of $325,000. Next year, Sooner expects to…

A: Computation of variable cost and contribution margin ratio Contribution margin= (Contribution/…

Q: Jamison Company uses the total cost method of applying the cost-plus approach to product pricing.…

A: when the goods are produced by the company it in needed to be sold by the company above the cost…

Q: . Contribution margin ratio (Enter as a whole number.) fill in the blank 1 % b. Unit contribution…

A: Answer to the fallowing above three parts a)Contribution Margin Ratio: 32% b)Unit Contribution…

Q: Sunn Company manufactures a single product that sells for $120 per unit and whose variable costs are…

A: The profit that a company's managers want to generate for a certain accounting period is referred to…

Q: The Cartwright Company income statement revenue and per unit costs are as follows: Sales $100.00…

A: Degree of operating leverage defined as the ratio which measures how much of the company operating…

Q: Bluegill Company sells 7,500 units at $160 per unit. Fixed costs are $60,000 and income from…

A: Total Sales = Variable Cost + Fixed Cost +Profit

Q: Drake Company produces a single product. Last year's income statement is as follows: Sales (25,000…

A: Solution 1: Contribution margin per unit = $505,000 / 25000 = $20.20 per unit Breakeven units =…

Q: Sunn Company manufactures a single product that sells for $210 per unit and whose variable costs are…

A: The contribution margin is calculated as difference between sales and variable costs. The…

Q: luegill Company sells 8,000 units at $220 per unit. Fixed costs are $88,000 and income from…

A: Let X be variable cost per unit. Net income = Sales - Variable cost - Fixed cost $792,000 =…

Question

Sunn Company manufactures a single product that sells for $110 per unit and whose variable costs are $88 per unit. The company's
annual fixed costs are $308,000. Management targets an annual income of $550,000.
(1) Compute the unit sales to earn the target income.
Numerator:
Denominator:
(2) Compute the dollar sales to earn the target income.
Numerator:
Denominator:
=
=
=
=
Units to Achieve Target
Units to achieve target
Dollars to Achieve Target
Dollars to achieve target

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.
Sunn Company manufactures a single product that sells for $240 per unit and whose variable costs are $192 per unit. The company's annual fixed costs are $734,400. Management targets an annual income of $1,200,000. (1) Compute the unit sales to earn the target income. Numerator: Denominator: (2) Compute the dollar sales to earn the target income. Numerator: Denominator: = = Units to Achieve Target Units to achieve target Dollars to Achieve Target Dollars to achieve target
Sunn Company manufactures a single product that sells for $120 per unit and whose variable costs are $90 per unit. The company's annual fixed costs are $432.000 Management targets an annual income of $750,000. (1) Compute the unit sales to earn the target income. Numerator: 1 Denominator: (2) Compute the dollar sales to earn the target income.. Numerator: Denominator P M = Units to Achieve Target Units to achieve target Dollars to Achieve Target Dollars to achieve target
jagdish
Blanchard Company manufactures a single product that sells for $136 per unit and whose total variable costs are $102 per unit. The company's annual fixed costs are $496,400. Management targets an annual pretax income of $850,000. Assume that fixed costs remain at $496,400. (1) Compute the unit sales to earn the target income. Choose Numerator: Fixed costs plus pretax income Choose Denominator: = Units to Achieve Target Contribution margin per unit = Units to achieve target 0 (2) Compute the dollar sales to earn the target income. Choose Numerator: Fixed costs plus pretax income Choose Denominator: Dollars to Achieve Target 1 Contribution margin ratio = Dollars to achieve target 0
Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $126 per unit. The company's annual fixed costs are $842,400. Management targets an annual pretax income of $1,350,000. Assume that fixed costs remain at $842,400. (1) Compute the unit sales to earn the target income. Choose Numerator: Choose Denominator: Units to Achieve Target Units to achieve target %3D (2) Compute the dollar sales to earn the target income. Choose Numerator: Choose Denominator: Dollars to Achieve Target Dollars to achieve target %3D
Please help me figure a-e
Finch Corporation produces products that it sells for $20 each. Variable costs per unit are $5, and annual fixed costs are $318,000. Finch desires to earn a profit of $51,000. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. a. Break-even point in units a. Break-even point in dollars b. Sales volume in units b. Sales in dollars Prev 1 of 16 Next >
Suppose a company has fixed costs of $47,600 and variable cost per unit of ². +222 dollars, where x is the total number of dollars per unit. units produced. Suppose further that the selling price of its product is 1656- (a) Find the break-even points. (Enter your answers as a comma-separated list.) x= (b) Find the maximum revenue. (Round your answer to the nearest cent.) $ (c) Form the profit function P(x) from the cost and revenue functions. P(x) Find maximum profit. (d) What price will maximize the profit? (Round your answer to the nearest cent.)
Please give me answer