Answered: The contribution margin per unit is P5,…

The contribution margin per unit is P5, while the direct fixed costs are P30,000 and the allocated fixed costs are P60,000. What is the break-even point in units

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

See similar textbooks

Related questions

Q: 00, the break even point in dollars will be:

A: Contribution Margin: It is the difference between the selling price and the variable cost per unit.…

Q: Assume a sales price per unit of $25, variable cost per unit $21, and total fixed costs of $161280.…

A: Break even point = Fixed cost / Contribution margin ratio Contribution margin ratio = (selling…

Q: 3. The ratio of variable cost to sales is 70%. The break-even point occurs at 60% of thecapacity…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: If Kaden Company's fixed costs are $46,800, the unit selling price is $42, and the unit variable…

A: Given, Unit selling price = $42 Unit variable costs = $24 Fixed costs = $46,800

Q: If fixed costs are $1,262,000, the unit selling price is $210, and the unit variable costs are $124,…

A: Break even sales point is that point at which company is only covering its fixed costs and variable…

Q: Bramble Corp. has a product with a unit selling price of $100, the unit variable cost is $40, and…

A: Lets understand the basics.Contribution margin ratio shows contribution earned in compared to sales…

Q: Calculate the break even in units, given Fixed Costs are $300,000; Variable Costs are $0.75 per…

A: Given, Fixed costs = 300,000 variable cost = 0.75 per unit

Q: product x has a contribution margin of $18 (20% of the sales price) and product Y has a contribution…

A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: Tykee Company has the following data: Variable costs are 75% of the unit selling price. The unit…

A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: If the unit selling price is $68 and the variable cost per unit is $20 and the total fixed costs are…

A: The contribution margin ratio is calculated because the percentage difference between a company's…

Q: Machine A has fixed costs of P500,000 and a variable cost of P20. Machine B has fixed costs of…

A: Solution: Indifference point in units = Difference in fixed costs / Difference in variable cost per…

Q: How much sales are required to earn a target net income of OMR 200,000 if total fixed costs are OMR…

A: Contribution refers to earnings left after deducting all direct costs from the sales revenue. It is…

Q: 49) Selling price is $60/unit, VC are $45/unit, fixed costs are $300,000, what is your breakeven…

A: Formula: Contribution margin = Selling price - variable cost Deduction of variable cost from selling…

Q: 16. If sales are P500,000, variable costs are P200,000, and fixed costs are P240,000, what is the…

A: Contribution Contribution is the distinction between sales and variable costs. It is also…

Q: Which of the following would produce the largest increase in the contribution margin per unit?…

A: Contribution margin per unit is calculated by subtracting the variable cost from the selling price…

Q: Case 1. If fixed costs are $17,000,000 with breakeven units at 400,000 and the variable cost is…

A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…

Q: Currently the unit selling price of a product is $200, the unit variable cost is $110, and the total…

A: Break even point means a situation where the is neither profit nor loss. Sales revenue is sufficient…

Q: Given the following: Variable cost as a percentage of sales = 60% Unit variable cost = $30 Fixed…

A: The answer is below

Q: The average contribution margin per unit for products a, b, and c is 9,50, and 44, respectively. The…

A: Weighted average contribution margin = sum of average contribution margin per unit for products a,…

Q: If fixed costs are $332,000, the unit selling price is $72, and the unit variable costs are $45, the…

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

Q: If fixed costs are $288,000, the unit selling price is $35, and the unit variable costs are $15,…

A: Break-even analysis is the easiest form of cost-volume-profit analysis. Break-even analysis is used…

Q: 2. Given the following information: The ratio of variable cost per unit divided by selling price per…

A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…

Question

18. The contribution margin per unit is P5, while the direct fixed costs are P30,000 and the allocated fixed costs are P60,000. What is the break-even point in units?

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

If fixed costs are $500,000 and the unit contribution margin is $40, what is the break-even point if fixed costs are increased by $80,000? A. 14,500 B. 12,500 C. 8,333 D. 9,667
If contribution margin ratio is 0.4 and total fixed cost is $280,000, the break even point in dollars will be:
What is the break even point in dollars if annual fixed costs are 114,000 and CTO is 0.65?
If fixed costs are $561,000 and the contribution margin per unit is $8.00, what is the break-even point in units if variable costs are decreased by $0.50 a unit? 66,000 74,800 70,125 60,000
16. If sales are P500,000, variable costs are P200,000, and fixed costs are P240,000, what is the contribution margin ratio? 48% 52% 40% 60%
If fixed costs are $500,000 and the unit contribution margin is $20, what amount of units must be sold in order to have a zero profit?
If sales are $30,000, fixed costs are $10,000, and variable costs are $7,000 what is the contribution margin ratio? O 0.594 O 0.767 O 0.612 0.659
If the selling price per unit is $10, the unit contribution margin is $5, and total fixed expenses are $17,500, what are the breakeven sales in units?
What is the break-even price? Assume: Fixed Costs = $30,000, Break Even Units = 12,000, Variable costs/unit = $2.50
5) Sales are $500,000 and variable costs are $350,000. What is the contribution margin ratio? а. 43% b. 30% c. 70% d. Cannot be determined because amounts are not expressed per unit.
2. Given the following information: The ratio of variable cost per unit divided by selling price per unit equals 0.25 Fixed Costs Amount to $50,000 a. What is the Break-even point b. What effect would a 6% decrease in selling price have on the break even point from part a?
a.Explain why contribution margin per unit becomes profit per unit above the break-even point b. If the contribution margin per unit is $7 and the break-even point is 10,000 units, how much profit will a firm make if 15,000 units are sold? c.What is the variable cost ratio? The contribution margin ratio? How are the two ratios related?