A furniture manufacturer specializes in wood tables. The tables sell for $100 per unit and incur $40 per unit in variable costs. The company has $6,000 in fixed costs per month. Calculate the breakeven point in units under each independent scenario.14. Variable costs increase by $10 per unit.15.Fixed costs decrease by $600.16.Sales price increases by 10%.Begin by selecting the formula labels. Then enter the amounts to compute the number of wood tables the company must sell to break even under each independent scenario, beginning with scenario 14. (Abbreviation used: CM = contribution margin. Complete all input fields. Foritems with a zero value, enter "0". Round the breakeven point-the required sales in units-up to the nearest whole unit. For example, 10.25 would be rounded to 11.)14. (15. (16. (++++) ÷)=) ÷+= Required sales in units=~=

Break Even Point (BEP) :— It is the point at which total cost is equal to total revenue. At this…

Answered: urniture manufacturer specializes in…

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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Gladstorm Enterprises sells a product for $50 per unit. The variable cost is $34 per unit, while fixed costs are $14,560. Determine the following: Round your answers to the nearest whole number. a. Break-even point in sales units _________ units b. Break-even point in sales units if the selling price increased to $60 per unit __________ units
Mia Enterprises sells a product for $90 per unit. The variable cost is $4o per unit, while fixed costs are $75,000. Determine the following: a. Break-even point in sales units units b. Break-even point in sales units if the selling price increased to $100 per unit units
Mia Enterprises sells a product for $90 per unit. The variable cost is $40 per unit, while fixed costs are $75,000. Determine the following: units a. Break-even point in sales units b. Break-even point in sales units if the selling price increased to $100 per unit units
A furniture manufacturer specializes in wood tables. The tables sell for $100 per unit and incur $40 per unit in variable costs. The company has $6,000 in fixed costs per month. Expected sales are 200 tables per month. 17. Calculate the margin of safety in units, 18. Determine the degree of operating leverage. Use expected sales. 19. The company begins manufacturing wood chairs to match the tables. Chairs sell for $50 each and have variable costs of $30. The new production process increases fixed costs to $7,000 per month. The expected sales mix is one table for every four chairs. Calculate the breakeven point in units for each product. 17. Calculate the margin of safety in units. Begin by selecting the formula labels and entering the amounts to compute the number of table the company must sell to break even. (Abbreviation used: CM contribution margin. Complete all input fields. For items with a zero value, enter "0".) ( Required sales in units ]+[ )+ ( Select the formula labels and…
Fruit Computer Corporation makes custom fruit shaped computers. It is currently producing 60 computers per month. Data are as follows: Sales price per unit $800 Variable cost per unit 600 Fixed costs per month 5600 If Fruit Computer Corporation expects to sell 50 units per month, how much is its margin of safety expressed in sales revenue? O $22,400 O $13,200 O $17,600 O $40,000
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. A. What is the company's break-even point in units? Break-even units 600 units B. What is the company's break-even point in dollars? Break-even dollars $49.00 C. Construct a contribution margin income statement for the month of September when they will sell 800 units. Use a minus sign for a net loss if present. Income Statement Sales $56,000 Variable Costs -16,800 Contribution Margin $39,200 Fixed Costs -29,400 Net Income $9,800 D. How many units will Maple need to sell in order to reach a target profit of $44,100? New break-even units _____ units E. What dollar sales will Maple need in order to reach a target profit of $44,100? New break-even dollars $_____ F. Construct a contribution margin income statement for Maple that reflects $140,000 in sales volume. Income Statement
XYZ Inc. sells a single product for $30 per unit. Variable production costs are $18 per unit. Fixed overhead costs amount $20,000 per month. Variable selling costs are $3 per unit. Fixed selling costs are $4,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. What is the company’s margin of safety? a. $160,000 b. $80,000 c. $40,000 d. $20,000
Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $80 per unit and has a CM ratio of 40%. The company's fixed expenses are $360,000 per year. The company plans to sell 13,000 knapsacks this year. Required: 1. What are the variable expenses per unit? Variable expenses per unit 2. Use the equation method for the following: a. What is the break-even point in units and in sales dollars? Break-even point in units Break-even point in sales dollars
A company has monthly fixed costs of $135,000. The variable costs are $5 per unit. If the sales price of a unit is $12 and we sell 7,500 units, the company's average fixed costs per unit will be OA. $23 per unit. OB. $7 per unit. OC. $18 per unit. OD. $5 per unit.
Mukh
Dominic's Deli recently calculated its annual break-even sales revenue to be $280,000. For each dollar of sales revenue, $0.40 goes to cover variable costs. a. Compute the contribution margin ratio. b. Compute the total fixed costs. c. Compute the sales revenue that would have to be generated to earn an operating income of $144,000. a. Contribution margin ratio b. Total fixed costs c. Sales revenue 60 %
Blossom Company makes radios that sell for $40 each. For the coming year, management expects fixed costs to total $126,380 and variable costs to be $32 per unit. Compute the sales dollars required to earn net income of $153,620.

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