Answered: The new break-even point in units is:

Business

Accounting

The new break-even point in units is:

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...

See similar textbooks

Related questions

Q: Vaughn Manufacturing sells radios for $50 per unit. The fixed costs are $425000 and the variable…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: Mazoon Company is producing 30000 units every year and making a profit of RO 450000. The company…

A: Degree of Operating Leverage = Contribution margin/ Net Income

Q: Grove Audio is considering the introduction of a new model of wireless speakers with the following…

A: The operating profit is the difference between the revenues and the operating costs. The profit is…

Q: Sunland Company manufactures and sells solar chargers for $50 each. Variable costs are $40 per unit,…

A: Break Even Sales is point at which no profit no loss is occurred. Formula: BEP (in amount) = Fixed…

Q: Determine the annual breakeven quantity for the (a) Current system and (b) the new system. (b) Plot…

A: •Break even point = fixed cost / contribution per unit •Contribution per unit = selling price per…

Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…

A: The point where the total of all the FC of the entity is equal to the contribution, known as…

Q: Break-even analysis Show all your solutions. 1. The Fixed Cost is P4,000. The material and labor…

A: Hi student Since there are multiple questions, we will answer only first question. Breakeven point…

Q: he Falling Snow Company is considering production of a lighted world globe that the company would…

A: Given, variable cost per unit = $62 Total fixed cost = $240,000 Markup = 0.30

Q: .00 per unit Variable costs 210.00 per unit Fixed costs 764,000 per year Assume that the…

A: Operating Profit is the difference between fixed expenses and contribution margin. Contribution…

Q: Newton cellular manufactures and sells the top line cell phone for the year 2022. Newton has…

A: Solution 1: Contribution margin ratio = 100% - Variable cost ratio = 100% - 70% = 30%

Q: Mullis Corporation manufactures DVDs that sell for $5.20. Fixed costs are $35,000 and variable costs…

A: The break-even point is the point at which a company is a neither profitable nor losing money. At…

Q: product currently sells for $12 per unit. The variable costs are $4 per unit, and 10,000 units are…

A: At break even contribution is equal to fixed cost

Q: Istanbul company makes special kind of product. Variable costs are $221 per unit, and fixed costs…

A: Income Statement :— It is one of the financial statement that shows profitability, total revenue and…

Q: 8. Merit, Ltd. manufactures a remote control device. The device sells for $25 per unit. The current…

A: Break-even point: A break-even point is where total cost equals total revenues. It is a point…

Q: A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round…

A: A profit analysis table helps in identifying the cost points of a product and help in calculating…

Q: Kent Company manufactures a product that sells for $54.00. Fixed costs are $341,000 and variable…

A: The objective of this question is to determine the effect of purchasing a new machine on the…

Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…

A: SOLUTION- BREAK EVEN POINT IS THE POINT WHERE TOTAL COST IS EQUAL TO TOTAL REVENUE I.E THERE IS NO…

Q: Trent PLLent Swifty Corporation sells a product for $50 per unit. The fixed costs are $930000 and…

A: The breakeven point in units has been calculated by total fixed cost divided by contribution per…

Q: Swifty Corporation is planning to sell 810000 units for $1.50 per unit. The contribution margin…

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

Q: Grove Audio is considering the Introduction of a new model of wireless speakers with the following…

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

Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…

A: The break even sales are the sales at point when business earned no profit or loss

Q: Mix Electronics purchases 2,400,000 units per year of a component with a purchase price of P50. The…

A: EOQ formula: EOQ = [2*d*s/h]^0.5 where d = annual quantity = 2,400,000 s = cost per order = 15 h =…

Q: A product currently sells for $16 per unit. The variable costs are $8 per unit, and 10,000 units are…

A: Break-Even point = Fixed cost / Contribution…

Q: Your organization sells tables for $200 each. The fixed cost is $25,000 per annum with current…

A: Selling price per table = $200 Fixed cost = $25,000 Current demand = 700 tables Direct material =…

Q: If the fixed costs of manufacturing a new cell phone are $9,000, the sales price is $100, and…

A: Break-Even Point is when the company recovered its fixed cost from its profit but did not earn…

Q: The Chimes Clock Company sells a particular clock for $40. The variable costs are $23 per clock and…

A: Lets understand the basicsVariable costs are costs which changes with change in activity…

Q: Kumolo Co. is selling 1,200 units of rice cooker per year. The selling price per unit is P800 with…

A: Given that, Selling price per unit = P800 Variable cost ratio = 60% Fixed cost = P396800

Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…

A: Break-Even (in units) = Fixed Costs / Contribution Margin Per Unit Break-Even (in dollars) =…

Q: Mueller Corp. manufactures flash drives that sell for $5.00. Fixed costs are $28,000 and variable…

A: Answer: Given, Fixed cost TFC $28,000 Variable cost UVC $3.60 per unit Selling price SP $5 per unit…

Q: NUBD Company manufactures a face masks that sells for P10 per unit. This is its sole product and it…

A: Solution: Contribution margin per unit = Fixed costs / Breakeven units = P100,000 / 50000 = P2 per…

Q: Sunland Company sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70%…

A: Break-even point: The break‐even point is that level of sales where the difference between the net…

Q: A small coffee shop currently offers a cup of cafe latte for P106. The variable costs are P58 per…

A: The Break-even selling price is the price where the organization neither earns any profit nor bears…

Q: A small coffee shop currently offers a cup of cafe latte for P106. The variable costs are P63 per…

A: Here, Number of Units Sold is 10,079 Sales Price per cup is P106 Variable Cost per cup is P63 Profit…

Q: National Company sells two types of computer chips. The sales mix is 30% (X-Chip) and 70% (Y-Chip).…

A: Introduction:- Break-even point means:- Where total revenues equals to total expenses. There is no…

Question

Waterway Industries sells radios for $50 per unit. The fixed costs are $625000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $105000 and variable costs will be 50% of the selling price. The new break-even point in units is:

25000

29200

27150

31250

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 Concept of Break Even point

VIEW

Step 2 Calculation of Break Even point

VIEW

Trending now

This is a popular solution!

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

Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $18,250 per year. The information they will use to consider these changes is shown here.
Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000
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?
Vaughn Manufacturing sells radios for $50 per unit. The fixed costs are $425000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $115000 and variable costs will be 50% of the selling price. The new break-even point in units is: 21600 21950 17000 21250
Trent PLLent Swifty Corporation sells a product for $50 per unit. The fixed costs are $930000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $190000 and variable costs will be 50% of the selling price. The new break even point in units is: O 37200. 43100. O 46500. 44800.
Please help me with show all calculation thanku
Newton cellular manufactures and sells the top line cell phone for the year 2022. Newton has estimated the following: contribution margin per phone $200 variable cost per Cellphone 450 annual fix cost total 180,000 net loss -$400 Given: Variable Cost as a %of sales 70%Annual fixed costs - total $600,000 What is the contribution margin ratio? What is the break even point in sales dollars? If the company is operating at a $100,000 loss what are the dollar sales? If the company is operating at a $100,000 profit what are the dollar sales?
Mix Electronics purchases 2,400,000 units per year of a component with a purchase price of P50. The fixed cost is P15 per order, and the carrying cost is 30% of the purchase price.a. Calculate the EOQ.b. Calculate the EOQ if the order cost is zero. c. Calculate the EOQ if the order cost is P10 per order.d. What is the implication to the firm if there is a decrease in the order cost?
A product currently sells for $12 per unit. The variable costs are $4 per unit, and 10,000 units are sold annually and a profit of $30,000 is realized per year. A new design will increase the variable costs by 20% and Fixed Costs by 10% but sales will increase to 12,000 units per year. (a) At what selling price do we break even with the new design?. (b) If the selling price is to be kept same ($12/unit) what will the annual profit be?
Sunland Company manufactures and sells solar chargers for $50 each. Variable costs are $40 per unit, and fixed costs total $120000. What amount of sales revenue is needed by Sunland to break even? $600000. $192000 O $428571 O $960000.
Wilson Partners manufactures thermocouples for electronics applications. The current system has a fixed cost of $300,000 per year, has a variable cost of $10 per unit, and sells for $14 per unit. A newly proposed process will add on-board features that allow the revenue to increase to $16 per unit, but the fixed cost will now be $500,000 per year. The variable cost will be based on a $48 per hour rate with 0.2 hour dedicated to produce each unit. Determine the annual breakeven quantity for the (a) Current system and (b) the new system. (b) Plot the two profit relations and estimate graphically the breakeven quantity between the two alternatives. (c) Mathematically determine the breakeven quantity between the two alternatives and compare it with the graphical estimate
Mazoon Company is producing 30000 units every year and making a profit of RO 450000. The company sells the unit for RO 300 with a variable cost of RO200 per unit. The fixed cost for the year is RO 680000.What is the degree of operating leverage in term of contribution Margin: Select one: O a. 8.58 O b. 5.98 O c. 7.67 O d. 6.67