Answered: XYZ Company manufactures GPS. The…

XYZ Company manufactures GPS. The selling price of each GPS is $150, variable cost $24, and fixed costs are $1,635,000. Calculate the following: a) contribution margin b) breakeven point in units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Crane Company sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70%…

A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…

Q: Compute the breakeven point and verify it from the following data:…

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: If the selling price per unit is $10, the unit contribution margin is $5, and total fixed expenses…

A: Breakeven sales units are the quantity of units sold that leads to a net income of zero. This means…

Q: Socks Unlimited produces sports socks. The company has fixed expenses of $85,000 and variable…

A: CONTRIBUTION MARGIN Contribution margin per unit is computed by deducting Total Variable Cost per…

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: Using the variable cost concept, determine the selling price for 28,400 units using the following…

A: Variable cost means the cost which vary with the level of output. Fixed cost remain fixed whatever…

Q: CO INC. sells two products, LIGO and CHA. The company sells these products at the rate of 2 units of…

A: For calculating the break even sale with different products , we need use the following formula :-…

Q: Sabrina Inc., sells table for $110. The unit variable cost per table is $85. Fixed costs total…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…

Q: eBook Show Me How Contribution Margin Ratio a. Imelda Company budgets sales of $1,010,000, fixed…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: XYZ company, produced 100 units, units sold: 80, selling price: 24 Total variable cost: 2000$, Total…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: 2-32 Total and unit c Materials cost $1 per fl blows 10 flanges per ho facturing) costs associa 1.…

A: Fixed Cost: A cost which does not change with increase or decrease in amount of goods or…

Q: on (d) t- ntity (g cer repc

A: you have posted a question with multiple sub-parts, we will solve first three sub-parts for you. To…

Q: Molly Company sells 30,000 units at $43 per unit. Variable costs are $26.66 per unit, and fixed…

A: CVP analysis is used in decision-making by the management. It helps to make strategies and take wise…

Q: SBD Phone Company sells its waterproof phone case for $122 per unit. Fixed costs total $262,000, and…

A: To decide the business volume at the desired degree of benefit, the current equation for discovering…

Q: Use the income statement below to answer the following questions. BASIC TRAVEL Contribution…

A: Formulas: Break even point = Fixed costs /Contribution margin per unit where, Contribution margin…

Q: Xyz Company sells 20000 units SP per unit is 12= VC per unit is 9/= Fixed cost for the period…

A: Variable costs are those costs which changes with change in activity level. Fixed costs are costs…

Q: 1. Ray Tech Inc. manufactures Game Consoles. The selling price of each Game Consoles is $699, Raw…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: If the unit selling price is $68 and the variable cost per unit is $20 and the total fixed costs are…

A: The contribution margin ratio is calculated because the percentage difference between a company's…

Q: Draw and explain EOQ chart with the following data: Requirements per year = 1600 units, Ordering…

A: Economic Order Quantity is that level of ordered inventory which reduces the ordering and holding…

Q: Zulu sells its waterproof phone case for $114 per unit. Fixed costs total $222,000, and variable…

A: In case of target income, we will calculate units sold by putting x as units sold and then solving…

Q: Raven Company has a target income of $71,800. The contribution margin ratio is 20%. What amount of…

A: Break even analysis and contribution margin analysis are the two important tools used in CVP…

Q: A Toy store sells remote control car. The average selling price is SAR 15 and tin average variable…

A: The contribution margin refers the excess of selling price over variable cost. The contribution…

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: Switch Manufacturing Co. builds and sells switch harnesses for glove boxes. The sales price and…

A: The break-even point seems to be the level of activity at which a company's overall revenue equals…

Q: Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:…

A: Breakeven sales is that level of sales revenue at which business is only recovering it's fixed costs…

Q: Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:…

A: The objective of the question is to calculate the weighted-average contribution margin per unit, the…

Q: Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:…

A: Introduction: The weighted average contribution margin is the standard amount by which a group of…

Q: A jeans maker is designing a new line of jeans called Slams. Slams will sell for $300 per unit and…

A: product's revenue and its variable costs. In other words, it is the amount of money that is…

Q: ooner Industries charges a price of $82 and has fixed cost of $325,000. Next year, Sooner expects to…

A: Computation of variable cost and contribution margin ratio Contribution margin= (Contribution/…

Q: How much is the price charged per unit if breakeven point is 8,500 units, variable cost per unit is…

Q: Brendon Company reported the following data. . Price per unit: $20 . Fixed costs: $6,000 . Breakeven…

A: Formula used: Break even units = Fixed cost / ( Sales price per unit - variable cost per unit )

Q: Ibra Company makes radios that sell for OMR 30 each. For the coming year, management expects fixed…

A: Answer- Breakeven Sales in Units = Total Fixed Cost / Contribution Margin Per Unit Breakeven…

Q: Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:…

A: Break even point :— It is the point of production where total cost is equal to total revenue. At…

Q: Bloom Company predicts it will incur fixed costs of $160,000 and earn income of $164,000 in the next…

A: Contribution margin ratio is the ratio between contribution margin and sales. It is calculated by…

Q: A B. Number of units 1,510 units 14,390 units 2,450 units Sale price per unit 1,600 %$4 4,400 2$…

A: 1.Contribution margin =sales-variable cost 2.contribution margin per unit= contribution…

Q: Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:…

A: Cost volume profit analysis is the technique used by management for decision-making. The methods…

Q: Lorri’s income statement is as follows: Sales* $60,000 Less variable costs (19,200) Contribution…

A: Contribution margin per unit is the per unit value earned by the entity after deducting variable…

Q: 2. vandolf, inc. produces and sells two products: a ceiling fan and a table fan. vandolf plans to…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

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: Sunn Company manufactures asingle product that sels for $130 per unt and whose variable costs are…

A: Formula: Contribution margin per unit = Selling price per unit -Variable cost per unit

Q: 6. Atlantic Manufacturing produces and sells children’s bikes at an average price of $80. Its…

A: The cost equation is a linear equation that takes into consideration total fixed costs and variable…

Question

4. XYZ Company manufactures GPS. The selling price of each GPS is $150,
variable cost $24, and fixed costs are $1,635,000. Calculate the following:
a) contribution margin
b) breakeven point in units

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 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

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 0
Viva sells its waterproof phone case for $124 per unit. Fixed costs total $247,000, and variable costs are $37 per unit. (1) Determine the contribution margin ratio. Contribution margin Contribution Margin Ratio Numerator: (2) Determine the break-even point in dollars. Numerator: 1 1 1 1 per unit Denominator: Denominator: = Contribution Margin Ratio Contribution margin ratio = = Break-Even Point in Dollars Break-even point in dollars 0 0
Find out BEP in units and value with the following data:Fixed cost - $30000Variable cost - $20 per unitSelling Price - $50 per unit.
Prearcan CVBA's income statement shows the following: Sales Revenue: $9,121,000 Variable Costs: 4,797,000 Fixed Costs: 3,946,000 If unit sales were 5,000, the contribution margin per unit to the nearest cent is : $
A jeans maker is designing a new line of jeans called Slams. Slams will sell for $205 per unit and cost $164 per unit in variable costs to make. Fixed costs total $60,000. 1. Compute the contribution margin per unit. Contribution margin 2. Compute the contribution margin ratio. Numerator: I Denominator: 1 3. Compute income if 5,000 units are produced and sold. Income Contribution Margin Ratio = Contribution margin ratio 0
Zulu sells its waterproof phone case for $100 per unit. Fixed costs total $177,000, and variable costs are $38 per unit. Compute the units that must be sold to get a target income of $210,500. Units to be sold to achieve targeted income Numerator: Denominator: Units to Achieve Target Units to achieve target %3D
Please help me with show all Calculation thanku
Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 420 100.00 Variable costs 217 51.67 Unit contribution margin $ 203 48.33 Assume that Staley Co. is currently selling 550 computer monitors per month and monthly fixed costs are $79,300.Staley Co.'s margin of safety ratio (MOS%) if 550 units are sold would be (round intermediate calculation up to nearest whole number of units): Multiple Choice 41.81%. 26.11%. 28.91%. 27.91%. 82.91%.
Develop an equation for total monthly production costs. Total Monthly Production costs = Fixed Costs + Variable Costs = _____________ + ($ per unit X Number of units) Predict total costs for a monthly production volume of 9,000 units.
3. JJ Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follows: Product Selling price per unit Variable cost per unit Trunk switch $60.00 $28.00 Gas door switch $75.00 $33.00 Glove box light $40.00 $22.00 Their sales mix is reflected in the ratio 4:4:1. What is the overall Composite Unit Contribution Margin for JJ Manufacturing with their current product mix? If annual fixed costs shared by the three products are $18,840, how many units of each product are to be sold in order for JJ Manufacturing to break even? Trunk Switch? Gas Door Switch? Glove Box Light? Determine their break-even point in sales dollars. Trunk Switch? Gas Door Switch? Glove Box Light?
The variable cost to make a cellular device is $ 300 and the fixed costs are $ 1,400 per day. Decide: a) The equation of the total cost "y" of manufacturing "x" cell phones per day b) What is the cost of manufacturing 250 cell phones per day?
Solve this attachment.