**Breakeven Point Analysis for Walker Company**Walker Company sells its product for $10 per unit and has variable costs of $3 per unit. The total fixed costs are $91,000. Suppose variable costs increase by 10% due to an increase in the cost of direct materials. What will be the effect on the breakeven point in units? (Round answer up to the nearest whole unit.)Options:- **A.** Decrease from 30,333 units to 27,576 units- **B.** Decrease from 7,000 units to 6,843 units- **C.** Decrease from 13,000 units to 1,941 units- **D.** Increase from 13,000 units to 13,583 units**Explanation:**This question involves calculating the breakeven point before and after a 10% increase in variable costs. The breakeven point is where total revenue equals total costs (both fixed and variable). The options provide potential changes in the breakeven point based on the variable cost adjustment.

Lets understand the basics.Break even point is a point at which contribution equals to fixed cost of…

Answered: Walker Company sellis its product for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

If fixed costs are $400,000 and the unit contribution margin is $20, what is the break-even point in sales units? Oa. 25,000 units Ob. 10,000 units Oc. 400,000 units Od. 20,000 units
On the CVP graph, the intersection between the total costs line and the Y axis represents: O a The loss area Ob. The profit area Oc The margin of safety Od. The total fixed cost Oe None of the given answers XYZ company expects the following in the next month: sales volume 50,000 units, contribution margin ratio 60%, the selling price $2per unit, and the total fixed costs $10,000. What will be the degree of operating leverage in the next month? O a 6 O b. 12 Oc 3 Od. None of the choices given O e 25 on
Variable manufacturing costs are $123 per unit, and fixed manufacturing costs are $55,000. Sales are estimated to be 4,000 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. How much would absorption costing operating income differ between a plan to produce 4,000 units and a plan to produce 5,000 units? X a. $ b. How much would variable costing operating income differ between the two production plans?
Manufacturing costs for product X include direct materials $18 per unit, direct labor $4 per unit, variable overhead $2 per unit, and fixed overhead $3 per unit, for a total of $27 per unit. If production volume is increased by 10 units, how much will total manufacturing costs change in the short term? Assume that the new production volume is in the relevant range. (hint: the total cost equation might be useful here) increase by $240 not enough information need to know the original volume increase by $220 increase by $250 O increase by $270
Help
39. If fixed costs are $288,000, the unit selling price is $35, and the unit variable costs are $15, what are the break-even sales (units) if fixed costs are reduced by $39,600? a.18,630 units b.9,936 units c.14,904 units d.12,420 units
If fixed costs are $1,260,000, the unit selling price is $202, and the unit variable costs are $110, the break-even sales (units) if fixed costs are increased by $43,800 is a.14,172 units b.17,006 units c.11,337 units d.21,258 units
If fixed costs are $283,000, the unit selling price is $72, and the unit variable costs are $51, what are the old and new break-even sales in units (rounded to a whole number) if the unit selling price increases by $5? a.3,931 units and 13,476 units b.13,476 units and 3,931 units c.5,549 units and 10,385 units d.13,476 units and 10,885 units
If fixed costs are $332,000, the unit selling price is $74, and the unit variable costs are $53, the old and new break-even sales (units), respectively, if the unit selling price increases by $8 are a.15,810 units and 4,486 units b.6,264 units and 10,948 units c.15,810 units and 11,448 units d.4,486 units and 15,810 units
Variable manufacturing costs are $120 per unit, and fixed manufacturing costs are $82,500. Sales are estimated to be 6,600 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 6,600 units and a plan to produce 7,500 units?fill in the blank 1 of 1$ b. How much would variable costing operating income differ between the two production plans?$fill in the blank 1 of 1
Please do not give solution in image format thanku
Compute the missing amounts. (Round per unit values to the nearest cent.) If 11,000 units are produced If 27,500 units are produced If 30,800 units are produced ... Variable Costs Total Per unit $ 3.00 Fixed Costs Per unit $ 7.00 Total

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS