Break-even quantity.

Question

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Answer 1

Question

Chapter 13, Problem 1P

(a):

To determine

Break-even quantity.

(a):

Expert Solution

Explanation of Solution

Revenue per unit (RP) is $89. Variable cost (VC) is $45. Fixed cost (F) is $5,000,000.

Break-even quantity (BQ) can be calculated as follows:

BQ=FRP−VC=5,000,00089−45=5,000,00044=113,636

Break-even quantity is 113,636 units.

(b):

To determine

Calculation of profit.

(b):

Expert Solution

Explanation of Solution

Profit for selling (S) 100,000 units can be calculated as follows:

Profit=(S×(RP−VC))−F=(100,000×(89−45))−5,000,000=4,400,000−5,000,000=−600,000

There is a loss of $600,000.

Profit for selling (S) 200,000 units can be calculated as follows:

Profit=(S×(RP−VC))−F=(200,000×(89−45))−5,000,000=8,800,000−5,000,000=3,800,000

There is a profit of $3,800,000.

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Answer 2

Question

Chapter 13, Problem 1P

(a):

To determine

Break-even quantity.

(a):

Expert Solution

Explanation of Solution

Revenue per unit (RP) is $89. Variable cost (VC) is $45. Fixed cost (F) is $5,000,000.

Break-even quantity (BQ) can be calculated as follows:

BQ=FRP−VC=5,000,00089−45=5,000,00044=113,636

Break-even quantity is 113,636 units.

(b):

To determine

Calculation of profit.

(b):

Expert Solution

Explanation of Solution

Profit for selling (S) 100,000 units can be calculated as follows:

Profit=(S×(RP−VC))−F=(100,000×(89−45))−5,000,000=4,400,000−5,000,000=−600,000

There is a loss of $600,000.

Profit for selling (S) 200,000 units can be calculated as follows:

Profit=(S×(RP−VC))−F=(200,000×(89−45))−5,000,000=8,800,000−5,000,000=3,800,000

There is a profit of $3,800,000.

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Answer 3

Question

Chapter 13, Problem 1P

(a):

To determine

Break-even quantity.

(a):

Expert Solution

Explanation of Solution

Revenue per unit (RP) is $89. Variable cost (VC) is $45. Fixed cost (F) is $5,000,000.

Break-even quantity (BQ) can be calculated as follows:

BQ=FRP−VC=5,000,00089−45=5,000,00044=113,636

Break-even quantity is 113,636 units.

(b):

To determine

Calculation of profit.

(b):

Expert Solution

Explanation of Solution

Profit for selling (S) 100,000 units can be calculated as follows:

Profit=(S×(RP−VC))−F=(100,000×(89−45))−5,000,000=4,400,000−5,000,000=−600,000

There is a loss of $600,000.

Profit for selling (S) 200,000 units can be calculated as follows:

Profit=(S×(RP−VC))−F=(200,000×(89−45))−5,000,000=8,800,000−5,000,000=3,800,000

There is a profit of $3,800,000.

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Answer 4

Question

Chapter 13, Problem 1P

(a):

To determine

Break-even quantity.

(a):

Expert Solution

Explanation of Solution

Revenue per unit (RP) is $89. Variable cost (VC) is $45. Fixed cost (F) is $5,000,000.

Break-even quantity (BQ) can be calculated as follows:

BQ=FRP−VC=5,000,00089−45=5,000,00044=113,636

Break-even quantity is 113,636 units.

(b):

To determine

Calculation of profit.

(b):

Expert Solution

Explanation of Solution

Profit for selling (S) 100,000 units can be calculated as follows:

Profit=(S×(RP−VC))−F=(100,000×(89−45))−5,000,000=4,400,000−5,000,000=−600,000

There is a loss of $600,000.

Profit for selling (S) 200,000 units can be calculated as follows:

Profit=(S×(RP−VC))−F=(200,000×(89−45))−5,000,000=8,800,000−5,000,000=3,800,000

There is a profit of $3,800,000.

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Answer 5

Chapter 13, Problem 1P

(a):

To determine

Break-even quantity.

(a):

Expert Solution

Explanation of Solution

Revenue per unit (RP) is $89. Variable cost (VC) is $45. Fixed cost (F) is $5,000,000.

Break-even quantity (BQ) can be calculated as follows:

BQ=FRP−VC=5,000,00089−45=5,000,00044=113,636

Break-even quantity is 113,636 units.

(b):

To determine

Calculation of profit.

(b):

Expert Solution

Explanation of Solution

Profit for selling (S) 100,000 units can be calculated as follows:

Profit=(S×(RP−VC))−F=(100,000×(89−45))−5,000,000=4,400,000−5,000,000=−600,000

There is a loss of $600,000.

Profit for selling (S) 200,000 units can be calculated as follows:

Profit=(S×(RP−VC))−F=(200,000×(89−45))−5,000,000=8,800,000−5,000,000=3,800,000

There is a profit of $3,800,000.

Answer 6

Chapter 13, Problem 1P

(a):

To determine

Break-even quantity.

(a):

Expert Solution

Explanation of Solution

Revenue per unit (RP) is $89. Variable cost (VC) is $45. Fixed cost (F) is $5,000,000.

Break-even quantity (BQ) can be calculated as follows:

BQ=FRP−VC=5,000,00089−45=5,000,00044=113,636

Break-even quantity is 113,636 units.

Answer 7

Chapter 13, Problem 1P

(a):

To determine

Break-even quantity.

Answer 8

(a):

Expert Solution

Explanation of Solution

Revenue per unit (RP) is $89. Variable cost (VC) is $45. Fixed cost (F) is $5,000,000.

Break-even quantity (BQ) can be calculated as follows:

BQ=FRP−VC=5,000,00089−45=5,000,00044=113,636

Break-even quantity is 113,636 units.

Answer 9

(a):

Expert Solution

Answer 10

(a):

Expert Solution

Answer 11

Expert Solution

Answer 12

(b):

To determine

Calculation of profit.

(b):

Expert Solution

Explanation of Solution

Profit for selling (S) 100,000 units can be calculated as follows:

Profit=(S×(RP−VC))−F=(100,000×(89−45))−5,000,000=4,400,000−5,000,000=−600,000

There is a loss of $600,000.

Profit for selling (S) 200,000 units can be calculated as follows:

Profit=(S×(RP−VC))−F=(200,000×(89−45))−5,000,000=8,800,000−5,000,000=3,800,000

There is a profit of $3,800,000.

Answer 13

(b):

To determine

Calculation of profit.

Answer 14

(b):

Expert Solution

Explanation of Solution

Profit for selling (S) 100,000 units can be calculated as follows:

Profit=(S×(RP−VC))−F=(100,000×(89−45))−5,000,000=4,400,000−5,000,000=−600,000

There is a loss of $600,000.

Profit for selling (S) 200,000 units can be calculated as follows:

Profit=(S×(RP−VC))−F=(200,000×(89−45))−5,000,000=8,800,000−5,000,000=3,800,000

There is a profit of $3,800,000.

Answer 15

(b):

Expert Solution

Answer 16

(b):

Expert Solution

Answer 17

Expert Solution

Answer 18

Ch. 13 - Prob. 1P Ch. 13 - Prob. 2P Ch. 13 - Prob. 3P Ch. 13 - Prob. 4P Ch. 13 - Prob. 5P Ch. 13 - Prob. 6P Ch. 13 - Prob. 7P Ch. 13 - Prob. 8P Ch. 13 - Prob. 9P Ch. 13 - Prob. 10P

Break-even quantity.

Break-even quantity.

Explanation of Solution

Calculation of profit.

Explanation of Solution

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Chapter 13 Solutions