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what will be the company's break-even point in units?

what will be the company's break-even point in units?

FINANCIAL ACCOUNTING
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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Operating Income Variable Costs Sales Fixed Costs per Unit Selling Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Operating Loss ments as . If Flanders purchases the new machinery. what will be the company's break-even point in units? Use commas as needed (i.e. 1,234). . If Flanders purchases the new machinery, what will be the company's break-even point in dollars? Rounded to whole dollars and shown with "S and commas as needed (i.e. $12,345). · Assuming Flanders purchases the new machinery, construct a contribution margin income statement for sale of 216,000 units, Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). dent Flanders Manufacturing Contribution Margin Income Statement unciation ch) For the Month um Cafe vices tudiante ons we . Complete the following contribution margin income statement to properly reflect the break-even information given in the problem. Rounded to whole dollars and shown with "S" and commas as needed (i.e. $12.34 ders Manufacturing Contribution Margin Income Statement For the Month
Transcribed Image Text:Operating Income Variable Costs Sales Fixed Costs per Unit Selling Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Operating Loss ments as . If Flanders purchases the new machinery. what will be the company's break-even point in units? Use commas as needed (i.e. 1,234). . If Flanders purchases the new machinery, what will be the company's break-even point in dollars? Rounded to whole dollars and shown with "S and commas as needed (i.e. $12,345). · Assuming Flanders purchases the new machinery, construct a contribution margin income statement for sale of 216,000 units, Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). dent Flanders Manufacturing Contribution Margin Income Statement unciation ch) For the Month um Cafe vices tudiante ons we . Complete the following contribution margin income statement to properly reflect the break-even information given in the problem. Rounded to whole dollars and shown with "S" and commas as needed (i.e. $12.34 ders Manufacturing Contribution Margin Income Statement For the Month
Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $18,250 per year. The information they will use to consider these changes is shown here. Current Units sold Sales price per unit Variable cost per unit Contribution margin per unit Fixed costs Break-even (in units) Break-even (in dollars) 216,000 2.15 %$4 1.75 2$ 0.40 $ 56,000 140,000 $301,000 Sales Variable costS Contribution margin Fixed costs Net income (loss) $464,400 $378,000 $ 86,400 $ 56,000 $ 30,400 NOTE: You may want to use one of the EXCEL spreadsheets I provided in the module - Chapter03 CM Income Statement.xlsx or Chapter03 CM Income Statement BE.xlsx - to help complete this problem. 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
Transcribed Image Text:Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $18,250 per year. The information they will use to consider these changes is shown here. Current Units sold Sales price per unit Variable cost per unit Contribution margin per unit Fixed costs Break-even (in units) Break-even (in dollars) 216,000 2.15 %$4 1.75 2$ 0.40 $ 56,000 140,000 $301,000 Sales Variable costS Contribution margin Fixed costs Net income (loss) $464,400 $378,000 $ 86,400 $ 56,000 $ 30,400 NOTE: You may want to use one of the EXCEL spreadsheets I provided in the module - Chapter03 CM Income Statement.xlsx or Chapter03 CM Income Statement BE.xlsx - to help complete this problem. 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
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