G httpChapter ReviewMy...Sales priceContribution margin ratioFixed costsTra..Vernon Company reported the following data regarding the product it sells:a. Break-even point in dollarsa. Break-even point in unitsb. Sales in dollarsb. Sales in unitsc. Break-even point in dollarsc. Break-even point in units$60Man...$10%$216,000M Questio...RequiredUse the contribution margin ratio approach and consider each requirement separately.b Ans...2,160,00036,000Bes...Saveda. What is the break-even point in dollars? In units?b. To obtain a profit of $54,000, what must the sales be in dollars? In units?c. If the sales price increases to $72 and variable costs do not change, what is the new break-even point in dollars? In units?USfron.

Contribution margin ratio: The proportion of sales revenue that contributes to covering fixed costs…

Answered: Vernon Company reported the following…

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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Thornton Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $44. 12 Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative 17 per unit 6 per unit $152,000 per year $102,100 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $178,500. c. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 21,400 units, how much could it pay in salaries for salespeople and still have a profit of $178,500? (Hint Use the equation method.) a. Break-even point in units Break-even point in dollars b Required sales in units Required sales in dollars C Fixed cost of salaries
Atlantic Company sells a product with a break-even point of 6,148 sales units. The variable cost is $71 per unit, and fixed costs are $178,292. Determine the following:
Radison Inc. sells a product for $91 per unit. The variable cost is $51 per unit, while fixed costs are $230,400. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $99 per unit. a. Break-even point in sales unitsfill in the blank 1 unitsb. Break-even point if the selling price were increased to $99 per unitfill in the blank 2 units
2. Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The company’s monthly fixed expenses are $22,500. The following names are to be considered when completing this problem: Operating Income Variable Costs Sales Fixed Costs per Unit Selling Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Operating Loss What is the company’s break-even point in units? . Use commas as needed (i.e. 1,234). What is the company’s break-even point in dollars? . Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Using the names listed above, construct a contribution margin income statement for the month of September when they will sell 900 units. Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Maple Enterprises Contribution Margin Income Statement For the Month of September How many units will Maple need to sell in…
In the month of March, Cullumber Salon serviced 570 clients at an average price of $170. During the month, fixed costs were $29,580 and variable costs were 60% of sales. Contribution margin in dollars-38760 Contribution margin per unit- 68 Contrubution margin ratio- 40% SOLVE FOR B PLEASE
Consider the following information: Retail price per unit: Wholesale price per unit: Manufacturer's price per unit: Manufacturer's variable cost: Retailer's fixed costs per quarter: Wholesaler's fixed costs per quarter: Manufacturer's fixed costs per quarter: Retailer's unit sales this quarter: Wholesaler's unit sales this quarter: Manufacturer's unit sales this quarter: $150 O $90.91 O $111.12 O $72.50 O $145.46 $80 $50 $35 $75,000 $1,750,000 $2,500,000 1,800 80,000 160,000 If the wholesaler wants his margin to be 45%, but doesn't believe he can convince the manufacturer to lower her price below $50, what price does the wholesaler need to charge the retailer? O Search
Gladstorm Enterprises sells a product for $46 per unit. The variable cost is $29 per unit, while fixed costs are $19,227. Determine the following: Round your answers to the nearest whole number. a. Break-even point in sales units fill in the blank 1 units b. Break-even point in sales units if the selling price increased to $58 per unit fill in the blank 2 units

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