Umbridge Purses Unlimited sells purses with a sales price of $25.00 each. Each purse costs the company $20.00 to produce, and the store incurs a total of $210,000 in fixed costs eachyear. What is the yearly breakeven point in units?Select one:OOCa. 10,500 pursesb. 21,000 pursesc. 8,400 pursesd. 42,000 pursese. None of these options are correct.

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

Answered: Umbridge Purses Unlimited sells purses…

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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8
Fis-Kla CVBA sells a single product in Georgia for $792. Variable costs are 59% of the selling price, and the company has fixed costs that amount to $305,112. Current sales total 18,426 units. Each unit that Fis-Kla sells will increase profit by, to the nearest dollar: Select one: A. $451 B. $325 C. $467 D. $308 E. $10
Fruity Pebbles Apparel sells fruit themed shirts at $58.00 per shirt. It incurs monthly fixed costs of $6000. The contribution margin ratio is calculated to be 10%. What is the variable cost per shirt? (Round any intermediate calculations and your final answer to two decimal places.) O$52.20 per shirt O $63.80 per shirt O $58.00 per shirt O $5.80 pcr shirt Next •Previous
Vishnu
Mauro Products distributes a single product, a woven basket whose selling price is $22 per unit and whose variable expense is $16 per unit. The company's monthly fixed expense is $16,200. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) 1. Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales 3. Break-even point in dollar sales baskets baskets
Team Spirit Calendars imprints calendars with college names. The company has fixed expenses of $1,065,000 each month plus variable expenses of $3.50 per carton of calendars. Of the variable expense, 71% is cost of goods sold, while the remaining 29% relates to variable operating expenses. The company sells each carton of calendars for $13.50. Read the requirements. Requirement 1. Compute the number of cartons of calendars that Team Spirit Calendars must sell each month to breakeven. Begin by determining the basic income statement equation. Variable expenses Sales revenue ... The breakeven sales is 106,500 cartons. Fixed expenses Using the basic income statement equation you determined above solve for the number of cartons to break even. = Operating income Requirement 2. Compute the dollar amount of monthly sales Team Spirit Calendars needs in order to earn $304,000 in operating income. Begin by determining the formula. Fixed expenses + Target operating income ( (Round the contribution…
On-The-Go Merchandiser sells luxury carry-on travel bags for $1,200 each. The firm's fixed operating costs are $600,000 when 5,000 or fewer bags are produced, and its variable cost ratio is 80 percent (i.e., variable cost per unit is 80 percent of the selling price). What is On-The-Go's operating breakeven point? Group of answer choices A. 2,500 bags B. 6,000 bags C. 750 bags D. 500 bags E. 4,000 bags
Avocado Company sells guitars to Mexican restaurants. The guitars sell for $600, and the fixed monthly operating costs are as follows: Rent and utilities $4800 Wages and benefits to employees 2300 Other expenses 485 Avocado understand that for every dollar of sales, $0.65 went to cover fixed costs, and anything above that point was profit. What is the amount of revenue that Avocado should earn each month to break even? (Round your answer to the nearest dollar.) O $4285 O $4769 O $5515 O $10,243
Maple Enterprises sells a single product with a selling price of $70 and variable costs per unit of $21. The company's monthly fixed expenses are $29,400. D. How many units will Maple need to sell in order to reach a target profit of $44,100? New break-even units fill in the blank 377e3afcef9e02c_1 units E. What dollar sales will Maple need in order to reach a target profit of $44,100? New break-even dollars $fill in the blank 377e3afcef9e02c_2 F. Construct a contribution margin income statement for Maple that reflects $140,000 in sales volume. Income Statement
a pharmacy takes up its spring time shipment of sunglasses to provide of cost and a profit of 70% of cost. for overhead expense of 40% at the end of the summer what rate of markdown can the pharmacy apply to the remaining inventory of sungLASSES and still break even on sales at this level ? round to the neares 0.1%
Munabhai
Teddy Dog Food Incorporated (TDFI) currently makes and sells one type and size of dog food, a 16 ounce bag of all-natural freeze-dried chicken. TDFI sells each bag of food for $10. The Variable Expense per bag of food is $6. Fixed Expenses per month total $300. If TDFI sells three extra bags of dog food, by how much does TDFI's overall profit increase? Omit the dollar sign in your answer.

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