Answered: The selling price of a particular…

The selling price of a particular product is $81.00 per unit, the variable expense is $55.00 per unit, and the breakeven sales in dollars is $243,000, what are the total fixed expenses?

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: The following information is available for FLOWER Company: Variable Cost = $1 per unit Total Fixed…

A: Formulas used : Break even point in units = Fixed Cost / Contribution per unit Net Income = Net…

Q: Given the linear relation: (80x-4C+2200 = 0) If x represents the number of units produced of a…

A: Given the linear relation: 80x - 4C + 2200 = 0The given linear equation is 80x - 4C + 2200 = 0,…

Q: Lindon Company is the exclusive distributor for an automotive product selling for $22.00 per unit…

A: Contribution Margin (CM): This concept represents the portion of sales revenue available to cover…

Q: A company’s product sells for $150 and has variable costs of $60 associated with the product. What…

A: Contribution margin per unit means difference of sales revenue per unit and variable cost per unit…

Q: Assume the following (1) selling price per unit - $25, (2) variable expense per unit-$13, (3) unit…

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

Q: If sales are $500,000, variable cost are $200,000, and fixed costs are $240,000, what is the…

A: Contribution margin ratio is calculated as ratio of contribution and sales

Question

The selling price of a particular product is $81.00 per unit, the variable expense is $55.00 per unit, and the breakeven sales in dollars is $243,000, what are the total fixed expenses?

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

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

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?
For a certain company, the cost function for producing x items is C(x)=40x+200, and the revenue function for selling x items in R(x)=−0.5(x−80)2+3,200. The maximum capacity of the company is 110 items. The profit function P(x) is the revenue function R(x) (how much it takes in) minus the cost function C(x) (how much it spends). In economic models, one typically assumes that a company wants to maximize its profit, or at least make a profit!Assuming that the company sells all that it produces, what is the profit function?P(x)= Preview Change entry mode . Hint: Profit = Revenue - Cost as we examined in Discussion 3. What is the domain of P(x)?Hint: Does calculating P(x) make sense when x=−10 or x=1,000? The company can choose to produce either 40 or 50 items. What is their profit for each case, and which level of production should they choose?Profit when producing 40 items = Number Profit when producing 50 items = Number Can you explain, from our model, why the company makes less profit…
Assume that the linear cost and revenue models apply. An item costs $13 to make. If fixed costs are $1600 and profits are $5700 when 100 items are made and sold, find the revenue equation. (Let x be the number of items.)R(x) =
If the sale price per unit is $7, the unit contribution margin is $3, and total fixed expenses are $19,500, the breakeven sales in units is:
From the following data, you are required to calculate 1) p/v ratio 2) break even sale with the help of p/v ratio 3)sales required to earn a profit of rs.45,000 Fixed expenses=rs.90000 Variable cost per unit: Direct material=rs.5 Direct labour=rs.2 Direct overheads=100% of direct labour selling price per unPit-rs.12
Your Company's fixed expenses total $150,000, its variable expense ratio is 60% and its variable expenses are $4.50 per unit. What is the selling price?
A certain company sells its product at (45 – 0.08x) pesos per unit. Variable cost per unit is P 25 while fixed cost is P 1,200. a. Find the break-even quantity and revenue b. Find the maximum point c. Find the profit at a sale of 120 units.
The unit selling price is $75 and the variable cost per unit is $33 and the total fixed costs are $287,937. If the actual sales were $691,414, what is the margin of safety in dollars, rounding to the nearest one dollar?
What must the sales be in dollars? In units?
Assume the following (1) selling price per unit = $30, (2) variable expense per unit = $18, and (3) total fixed expenses = $52,200. Given these three assumptions, the unit sales needed to achieve a target profit of $10,200 is:
What is the unit variable cost on these general accounting question?
The unit selling price is $11 and the variable cost per unit is $5 and the total fixed costs are $147,921. What are the required sales in dollars to earn a net income of $444,253? Round the contribution margin ratio to at least seven decimal places for your calculation. Round only your final answer to the nearest one dollar and do not type the dollar sign.