What is the break-even quantity?
Q: Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells…
A: Lets understand the basics.Sometimes business entities try to enter into new function or new…
Q: urniture manufacturer specializes in wood tables. The tables sell for $100 per unit and incur $40…
A: Break Even Point (BEP) :— It is the point at which total cost is equal to total revenue. At this…
Q: Calculate the break-even sales revenue and units for the two models of snowboards proposed.…
A: The question is based on the concept of Cost Accounting,
Q: Required: Juniper Enterprises sells handmade clocks. Its variable cost per clock is $6.80, and each…
A: Cost volume profit analysis is the technique used by management for decision making. The methods…
Q: Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales).…
A: Contribution Margin: The contribution margin is the difference between the selling price and the…
Q: Make or Buy - Home Grocery (HG) provides home delivery of groceries. Customers submit orders to the…
A: Deciding to either manufacture a product internally or buy it from an outside provider is known as a…
Q: Dirac Manufacturers Co. plans to introduce a new type of shirt based on the following information:…
A: Selling price of shirt: $57Variable cost per shirt: $18Fixed cost: $7800Let us assume number of…
Q: Sandy Bank, Incorporated, makes one model of wooden canoe. Partial information is given below.…
A: Upon completion of the calculations, it has been deduced that the variable cost per unit is…
Q: Sherpa Company manufactures tents and sleeping bags. Tents are priced at $80, have variable cost of…
A: Introduction:- This is a managerial accounting problem that involves calculating the segment margin…
Q: Head-First Company plans to sell 4,200 bicycle helmets at $67 each in the variable cost is $44…
A: The break-even point is the point where the company is able to cover all its costs but does not make…
Q: Sandhill Enterprises produces giant stuffed bears. Each bear consists of $18 of variable costs and…
A: Special order means one-time order that is received from not a regular customer. Special order…
Q: Premier Printing produces custom labels and stationary for companies. In conducting CVP analysis of…
A: At the break-even point, the number of sales units is the quantity of goods or services a business…
Q: Your Company manufactures and sells a single product. The product sells for $1,750 per unit and has…
A: Required number of sales is calculated as sum of fixed cost and desired profit divided by…
Q: 1. What is the contribution margin for one custom skin? Round your answer to the nearest cent. 2.…
A: Contribution = Sales - Variable cost Break even sales = Fixed cost/ Contribution per unit…
Q: Ten Toes produces sports socks. The company has fixed expenses of $95,000 and variable expenses of…
A: The Break-even point is the one at which the company will have no profit and loss from the sale of…
Q: Saints Sports Gear has the following information relative to each basketball it sells:…
A: Fixed cost in total will remain constant. Thus it should 'ot be considered in decision making. The…
Q: Dream Enterprise wants to know how much it costs to make one (1) unit of their product and how much…
A: Answer 1) Calculation of Product’s total cost per unit Total Cost per unit = (Fixed Cost per month +…
Q: Karishtha Company have a plan to sell 10,000 shirts at $15 each in the coming year. Product costs…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: Head-First Company plans to sell 4,200 bicycle helmets at $71 each in the coming year. Variable cost…
A: Income statement :— It is one of the financial statements that shows profitability, total revenue…
Q: Oliver produces e-bikes. A customer has offered Oliver $1,000 per unit for 200 units. To fill the…
A: The objective of the question is to calculate the differential revenue for Oliver's e-bike business.…
Q: Cunningham, Inc. sells bikes for $60 each. Variable costs are $40 per unit, and fixed costs total…
A: Break-even point = Fixed cost / Contribution margin per unit Contribution margin per unit = Selling…
Q: mpany that manufactures facial towels has the capacity to produce 48,000 towels per month. The…
A: Contribution margin is an important metric that businesses use to evaluate the profitability of…
Q: KGM Inc. has fixed costs of $900,000. When 60,000 units are produced, the total costs (both fixed…
A: The objective of the question is to calculate the total costs if the production level is increased…
Q: Sabrina Inc, sells table for $110. The Unit Variable Cost per table is $85. Fixed Costs Total…
A: Contribution Per Unit = Selling Price - Variable Cost = $110 - $85 = $25 Break even Point = Fixed…
Q: Instructions: Whittier Company plans to sell 1,000 mowers at $400 each in the coming year. Total…
A: Solution.. Sales price per unit = $400 Variable cost per unit = $325 Fixed cost = $45,000…
Q: Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year.Variable cost…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: Handy-Maid Cleaning Service is considering off ering anadditional line of services to include…
A: Breakeven sales revenue is that level of sales revenue at which business is not making any profits…
Q: Determine the break- point under ne 6,000 under the new and old
A: Break Even point defines where the company meets no profit no loss. Where the net earning of the…
Q: The cost of a window air conditioner was $340 and had a markup on cost percentage of 50%. During a…
A: Cost = $340 Markup on cost = 50% = 170 Therefore the selling price = $510 During a spring promotion,…
Q: what is the recommended decision and how much will be saved based on this decision?
A: Sometimes a business entity gets the offer to buy the same goods (they are manufacturing) from an…
Q: It costs a coat manufacturer $8750 to make 125 coats and it costs $6500 to make 80 coats. Each coat…
A: Sales are the revenues generated by the business from its day to day operations. The sales revenue…
Q: Please explain your answer
A: The objective of the question is to understand the cost structure and profitability of Handy Home's…
Q: KGM Inc. has fixed costs of $900,000. When 60,000 units are produced, the total costs (both fixed…
A: Fixed cost will remains constant. It will not change even though their is change in production.
Q: Compute margin of safety ratio assuming actual sales are $951,500. (Round answer to O decimal…
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: Fruity Pebbles Apparel sells fruit themed shirts at $58.00 per shirt. It incurs monthly fixed costs…
A: Formula: Contribution margin ratio = Contribution margin / Sales
Q: Birkenstock is considering adding a new Big Buckle sandal to its current product offerings.…
A: PLEASE LIKE THE ANSWER YOUR RESPONSE MATTERS Requirement 1: Birkenstock's expected 2021 profit :…
Q: for $250 and total variable costs per jacket are $100. Frazier Company's fixed costs per unit are…
A: The contribution margin is calculated as difference between sales and variable costs. The operating…
Q: answer must be in proper format or i will give down vote
A: In order to find the total fixed cost, we first need to calculate the total variable cost. The…
Q: Luna Sea Sushi, Inc. has total costs of $130,000 when it sells 40,000 units. If total fixed costs…
A: Variable cost per unit can be calculated by dividing total variable cost by total units.
Q: CVP Drill #6 Shultz Company sells slides for $400 each. If the company's fixed costs total $300,000,…
A: The breakeven units represent the units to be sold to recover the total cost. When a company sells…
Q: How many masks must COVID Inc. manufacture to break-even?
A: Break even is the point where company neither earns profit nor incurs any losses.
Q: Sammy Co. currently sells 1,000 units of product M for P2 each. Variable costs are P1.50. A discount…
A: Contribution from Special order=Units×Contribution per unit=400×P 1.70 - P 1.50=400× P 0.20=P 80
Step by step
Solved in 3 steps with 3 images
- Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of $22 each in the coming year. Total variable costs equal $1,086,800. Total fixed costs equal $8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.)Required:1. What is the contribution margin per unit? What is the contribution margin ratio?2. Calculate the sales revenue needed to break even.3. Calculate the sales revenue needed to achieve a target profit of $245,000.4. What if the average price per unit increased to $23.50? Recalculate:a. Contribution margin per unitb. Contribution margin ratio (rounded to four decimal places)c. Sales revenue needed to break evend. Sales revenue needed to achieve a target profit of $245,000Riley's Rugshas a unit selling price of $120, unit variable cost of $40, and fixed costs of $35,000 per month. Last month. Riley's sold 950 rugs. This mornth, Riley's wishes to raise the unit selling price to $135. but thinks only 900 units could be sold. If Riley's makes only these changes, the contribution margin will O increase by $15,000. O decrease by $9,000. Oincrease by $9.500. O remain unchanged.Owe
- A jeans maker is designing a new line of jeans called Slams. Slams will sell for $315 per unit and cost $214.20 per unit in variable costs to make. Fixed costs total $66,000. (Round your answers to 2 decimal places.) 1. Compute the contribution margin per unit. Contribution margin 2. Compute the contribution margin ratio. Numerator: Denominator: 3. Compute Income if 6,200 units are produced and sold Income Contribution Margin Ratio Contribution margin ratio 0Smelly Feet Co. produces sports socks. The company has fixed costs of $157,000 and variable costs of $0.80. Each package sells for $2.50.(Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the contribution margin per package and the contribution margin ratio. 2. Find the break-even point in units and in dollars using the contribution margin approach. (Reminder to write answer in whole units).A company sells beds and can produce 1,000 units per month for a fixed cost of £216,759. The variable cost is £414 per unit and the current demand is 700 units which sell for £968 per unit. The company is approached by a hotel for an order of 200 beds at £614 per unit. Answer the following questions: Is the fixed cost relevant when deciding to accept or reject this special order? How much additional contribution will be generated by accepting this order? Per unit (£): In total (£): Should the company accept this special order from the hotel? Yes No
- Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $75. Production costs per unit are $40 variable and $10 fixed. Mesa Verde is considering staining and sealing the table to sell it for $100. Unit variable costs to finish each table are expected to be an additional $19 per table, and fixed costs are expected to be an additional $3 per table.Prepare an analysis showing whether Mesa Verde should sell stained or finished tables. Please solve this if any more information is needed let me know.please provide explanations to answers.A company that produces puppets, has fixed costs of 6200 dollars and variable costs of 60 per puppets produced. Give the cost of producing 44 puppets. (If your answer is $500, then write only 500, without $.)
- 25. Arturito Company was approached by the Jordan Brand to purchase 10,000 pairs of shoes for P550. The company currently operates at 45,000 pairs. The maximum capacity of Arturito is 50,000 pairs. If arturito will accept the order, it will need to stop some of their operations. The shoes normally sell for P600. Costs pertaining to the production are as follows: Manufacturing costs are as follows: Direct material per unit P200 Direct labor per unit 180 Variable overhead per unit 50 Fixed overhead per unit 30 Period costs are as follows: Variable selling costs P20 per unit Fixed administrative costs 450,000 If the company will accept the order: It will not incur any selling costs. Variable overhead of P12 per unit will not be incurred. Exportation costs of P150,000 will be incurred. If Arturito will accept the special order, what is the…Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenbergplans to sell 30,000 ceiling fans and 70,000 table fans in the coming year. Product price and costinformation includes: Ceiling Fan Table FanPrice $60 $15Unit variable cost $12 $7Direct fixed cost $23,600 $45,000Common fixed selling and administrative expenses total $85,000.Required:1. What is the sales mix estimated for next year (calculated to the lowest whole number foreach product)?2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans.How many ceiling fans and table fans are sold at break-even?3. Prepare a contribution-margin-based income statement for Vandenberg, Inc., based on theunit sales calculated in Requirement 2.4. What if Vandenberg, Inc., wanted to earn operating income equal to $14,400? Calculate thenumber of ceiling fans and table…Required: Laguna Print makes advertising hangers that are placed on doorknobs. It charges $0.18 and estimates its variable cost to be $0.16 per hanger. Laguna's total fixed cost is $2,260 per month, which consists primarily of printer depreciation and rent. Calculate the number of advertising hangers that Laguna must sell in order to break even. Note: Round your intermediate calculation to 2 decimal places and final answer to the nearest whole number. Break-even Hangers
