Swifty Corporation is planning to sell 810000 units for$1.50 per unit. The contribution margin ratio is 20% . IfSwifty will break even at this level of sales, what are thefixed costs?O $810000$567000.O $930000.$243000.

Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with…

Answered: Swifty Corporation is planning to sell…

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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Fixed costs are $500000 and the variable costs are 80% of the unit selling price. What is the break-even point in dollars? $625000 $1687500 $2500000 $2000000
5. (A) Explain in detail the meaning of Contribution Margin. (B) Robeson Company expects to produce and sell 500 units next month. Data on costs foll Per unit costs: Selling price Variable manufacturing costs Variable selling costs $8.00 $2.75 $0.25 Total costs: Fixed manufacturing costs Fixed selling costs REQUIRED: $1,000 $ 125 What is the breakeven point in units? What is the breakeven point in sales dollars? What is the expected operating income for next month? What is the margin of safety in dollars? i. ii. iii. iv.
Witrox Bhd sells two models of smartphone, the Oppo and the Xiaomi. Oppo RM 60.0 35.0 25.0 Sales price per unit Variable cost per unit Contribution margin per unit Witrox has determined that it would break even at an annual sales volume of 50,000 units, of which 75% would be Oppo. Required: a) What are the contribution margin ratios for each product and the company? b) What is the amount of Witrox's estimated annual fixed costs? Xiaomi RM 85.0 54.0 31.0 c) What is the sales mix? d) Prepare a product line income statement with operating income of RM500,000. Fixed production costs will increase RM45,000 and fixed administrative costs will increase RM22,500 to support the increase in volume.
If fixed costs are $1,226,000, the unit selling price is $220, and the unit variable costs are $100, what is the break-even sales (units) if fixed costs are increased by $30,100?
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If breakeven point is 1,100 units, each unit sells for $32, and fixed costs are $20,000, then on a graph the: > Total cost line will be zero at zero units sold > Total revenue line and the total cost line will intersect at $35,200 of revenue > Revenue line will start at $20,000 > Total revenue line and the total cost line will intersect at $55,200 of revenue

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Swifty Corporation is planning to sell 810000 units for $1.50 per unit. The contribution margin ratio is 20% . If Swifty will break even at this level of sales, what are the fixed costs? O $810000 $567000. O $930000. $243000.