The following information is available for ABC Company: Variable Cost = $1 per unit Total Fixed Cost = $5,000 Price per Unit = $5 a) Calculate the Break Even Point in Units _________________ b) What would have been the Net Income if 3000 units had been sold? $___________________ (HINT: prepare an income statement adjusting only the numbers that vary with the number of units sold) DO NOT USE DOLLAR SIGNS IN YOUR ANSWER. A. a) 1250; b) 7000 B. a) 7000; b) 12000 C. a) 1250 b) 12000
The following information is available for ABC Company: Variable Cost = $1 per unit Total Fixed Cost = $5,000 Price per Unit = $5 a) Calculate the Break Even Point in Units _________________ b) What would have been the Net Income if 3000 units had been sold? $___________________ (HINT: prepare an income statement adjusting only the numbers that vary with the number of units sold) DO NOT USE DOLLAR SIGNS IN YOUR ANSWER. A. a) 1250; b) 7000 B. a) 7000; b) 12000 C. a) 1250 b) 12000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
The following information is available for ABC Company:
Variable Cost = $1 per unit
Total Fixed Cost = $5,000
Price per Unit = $5
a) Calculate the Break Even Point in Units _________________
b) What would have been the Net Income if 3000 units had been sold? $___________________ (HINT: prepare an income statement adjusting only the numbers that vary with the number of units sold) DO NOT USE DOLLAR SIGNS IN YOUR ANSWER.
| A. |
a) 1250; b) 7000 |
|
| B. |
a) 7000; b) 12000 |
|
| C. |
a) 1250 b) 12000 |
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!
Includes step-by-step video
Trending now
This is a popular solution!
Learn your way
Includes step-by-step video
Step by step
Solved in 2 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education