Webb pic sells one product for which data for a budgeted period are given below: £ Selling price per unit 180 Variable cost per unit 75 Fixed cost per unit 35 Fixed costs are based on a budgeted level of activity of 16,00o units. Calculate Webb plc's break-even point in terms of units:

Webb pic sells one product for which data for a budgeted period are given below: £ Selling price per unit 180 Variable cost per unit 75 Fixed cost per unit 35 Fixed costs are based on a budgeted level of activity of 16,00o units. Calculate Webb plc's break-even point in terms of units:

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 17E

See similar textbooks

Related questions

Q: Which is the accounting rate of return using the average investment?

A: Summary of the relevant information as provided in the question : cost of investment = £…

Q: Alex Enterprises reports the following information on its year-end income statement: Net sales…

A: Formula: Gross profit Percentage = [ ( Sales - Cost of goods sold ) / Sales ] x 100

Q: Indicate whether each of the following transactions increases (+), (decreases (-), or has no effect…

A: The accounting equation is written as: Assets = Liabilities +Owner's Equity

Q: Clark Ltd has been trading for one year as at 31 December 2020 and during that year it paid…

A: Here, the electricity bill for first 3 quarters will be 760. The electricity bill for the last…

Q: Required: 1. Compute Lin's regular pay, overtime pay, gross pay, and net pay. 2. Journalize the…

A: [1] FICA Taxes in regard to social security and Medicare Tax shall be deducted from the employee…

Q: Problem #1: Assume Johannsen Company borrows $100,000 from Evans Bank on September 1, 2019, signing…

A: The amount of borrowing is recognized in the liability side of the balance sheet and the interest…

Q: [The following information applies to the questions displayed below.] At the beginning of the year,…

A: Depreciation shows the reduction in the value of fixed asset over its useful life. It reduces the…

Q: For each of the following unrelated situations, determine the financial statement effect using the…

A: Monthly depreciation = Cost of the Equipment / No. of months = $31200/48 months = $650

Q: Not syncing Calculator Print Item Bloom's Company pays biweekly salaries of $40,000 every other…

A: Adjusting entries are prepared at the end of the accounting period in order to ensure the accrual…

Q: Determine the proper total inventory value for each of the following items in Erik Company's ending…

A: Value of inventory = Lower of Cost or Net realizable value where, Net realizable value = Sales…

Q: Estrada, Inc. is concerned about the level of its advertising and office salaries expenre Selected…

A: The trend percentages are calculated with the following formula: Trend percentage = (Amount of the…

Q: If the closing inventory at 31 December was £5,000 and depreciation is to be ignored, which one of…

A: The answer for the multiple choice question and relevant working are presented hereunder : Turnover…

Q: Ansell plc produces 2,400,000 units in 2020. The variable production cost per unit is £8. Fixed…

A: Absorption costing demonstrates that all the expenses related to manufacturing a product are…

Q: Compute the interest accrued on each of the following notes payable owed by Northland, Ic., on…

A: Accrued Interest= Principal*Rate*Time

Q: It is estimated that a certain piece of equipment can save as $17,000 per year in labour and…

Q: Compute Bond Proceeds, Amortizing Premium by Interest Method, and Interest Expense Ware Co. produces…

A: Bonds are the financial instruments used by companies to raise money from the market.

Q: Under the allowance method of accounting for credit losses, the entry to write off a specific…

A: Allowance for doubtful accounts means where we expect some debts to become bad in near future then…

Q: The Multi-step Income Statement Dino Company, a merchandising firm, reports the following data for…

A: A MULTI-STEP INCOME STATEMENT REPORTS A COMPANY'S REVENUE , EXPENSES AND OVERAL PROFIT OR LOSS FOR A…

Q: Dishman Ltd plans to sell 200,000 items a year for £15 each. Fixed costs are £360,000 a year and…

A: Margin of safety is the difference between the actual sales for the current period and the break…

Q: Angel Ruiz owns a business called Ruiz Construction Co. He does his banking at Citizens National…

A: Social Security tax Payable $ 11,250 Medicare Tax Payable $ 2,625 Federal Income tax…

Q: (b) “The Matching Principle is the essence of financial accounting, with significant implications…

A: The statement in which the revenues earned by the business, the expenses incurred during the period,…

Q: Last month ABC Inc. produced 3,000 Units based on the following info.: Unit Cost Cost per Period $…

A: Manufacturing Overhead: The indirect cost of maintaining and operating manufacturing-related…

Q: below iS selected finar Selected Balance Sheet Data December 31, 2016, 2015 Соса-Cola (S in…

A: Debt to assets ratio for year 2016 of Coca cola company =Total liabilities for year 2016Total Assets…

Q: All three products use the same material which costs £25 per kilogram but there is not enough…

A: for the purpose of calculating the maximum profit when one or two activities are constraint then we…

Q: Ltd bought a laptop computer for its business that cost £2,000 and it has a net book value of £1,200…

A: trent ltd bought laptop For its business 2,000 net book value after one year (Given) 1200 Actual…

Q: On September 1, Baxter Inc. reported Retained Earnings of $136,000. During the month of September,…

A: Retained earning means amount of profit remain after all the adjustment of expense and various…

Q: If liabilities increase by £3,000 during a given period and owner's equity decreases by £1,000…

A: Accounting equation plays an important role in accounting function. As per the accounting equation,…

Q: The budget of Bisby plc shows total production overheads of £78m. They plan to work 6m hours and…

A: It is the predetermined rate that is used for the cost allocation of overhead costs.

Q: Evaluating Firm Solvency The following financial information is taken from the balance sheets of the…

A: Debt to total asset ratio:- It is the percentage of total assets of the company financed from debt .…

Q: How do you solve this?

A: Under the Weighted average cost method, cost per unit is decided by the total cost divided by…

Q: Problem #3: Arcade Company is trying to decide between the following two alternatives to finance its…

A: Earning per share means amount of earning with which the company is left per share , after paying…

Q: profit margin

A: Profit margin = Net income * 100/Revenue

Q: Problem #4: Below is selected financial data regarding current assets and current liabilities for…

A: The working capital is calculated as difference between current assets over current liabilities.

Q: You have been asked to assist with the preparation of a statement of stockholders' equity for Maxx…

A: Statement of owner's equity gives information about the changes in the stcokhoders' equity account.…

Q: BE17.4 - Using Excel to Prepare Entries for Debt Investments PROBLEM Student Work Area Required:…

A: Journal entries are records of financial transactions made by a business or organization. They are…

Q: If the trial balance at Howell's year-end shows trade receivables of £19,900 and bad debts of £600…

A: Journal book is the book where all the transactions of the company will be recorded. From the…

Q: If it is known that a debtor cannot pay because of bankruptcy, the amount to be written off is shown…

A: If Debtor becomes bankrupt,then there are chances; that amount will not be recovered or there will…

Question

How to do this? 10

Webb plc sells one product for which data for a budgeted period are given below:
£
Selling price per unit
180
Variable cost per unit
75
Fixed cost per unit
35
Fixed costs are based on a budgeted level of activity of 16,000 units.
Calculate Webb plc's break-even point in terms of units:
Select one:
O a. £3,862
o b. £5,333
O c. £7,466
o d. £3,111

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

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

Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in the coming year. Unit variable cost is 21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Fixed factory overhead is 30,000 and fixed selling and administrative expense is 48,000. Required: 1. Calculate the variable cost ratio. 2. Calculate the contribution margin ratio. 3. Prepare a contribution margin income statement based on the budgeted figures for next year. In a column next to the income statement, show the percentages based on sales for sales, total variable cost, and total contribution margin.
SOM plc sells one product for which data for a budgeted period are given below: Selling price per unit Variable cost per unit Fixed cost per unit £ 90 40 22 Fixed costs are based on a budgeted level of activity of 5,000 units. Calculate the total costs of production of 5,000 units: A. £110,000 B. £250,000 C. £450,000 D. £310,000.
Muhanga Corporation sells three products: R, S, and T. Budgeted information for the upcoming accounting period follows. Product Sales Volume (Units) Selling Price Variable Cost R 17,600 $ 19 $ 13 S 13,600 15 6 T 54,800 16 10 What is the company's weighted-average unit contribution margin?
N1. Account
Kirchoff, Inc., manufactures a product with the following costs: Direct materials Per Unit Per Year P18.00 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable SG&A expenses P11.90 P2.10 P1,422,000 P3.60 Fixed SG&A expenses The pricing calculations are based on budgeted production and sales P1,540,500
please help me
Gibson Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 96 (64) a. Total number of products b. Product Super b. Product Supreme $32 Supreme $ 132 (86) Gibson expects to incur annual fixed costs of $155,660. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme. units units units $ 46 Required a. Determine the total number of products (units of Super and Supreme combined) Gibson must sell to break even. b. How many units each of Super and Supreme must Gibson sell to break even? Note: For all requirements, do not round intermediate calculations.
Calculate the following:a. Composite break-even point in units and in pesosb. Allocated CBEP in units and in pesosc. Sales per mixd. Composite sales if profit before tax is P2,000,000
2. Determine the breakeven sales in units of Caroline Inc. using the following data:
6. Bloomsbury plc sells one product for which data for a budgeted period are given below: Selling price per unit Variable cost per unit Fixed cost per unit 80 48 16 Fixed costs are based on a budgeted level of activity of 5,000 units. Calculate the total costs of production of 5,000 units: A. £80,000 B. £240,000 C. £320,000 D. £400,000.
Please help me with show all calculation thanku
Determinant Company is a price−taker and uses a target−pricingapproach. Refer to the following information: Production volume 602,000 units per year Market price $34 per unit Desired operating income 17% of total assets Total assets $13,800,000 What is the target full product cost in total for the year? Assume all units produced are sold. Question content area bottom Part 1 A. $13,800,000 B. $18,122,000 C. $2,346,000 D.$ 102, 340