Bundle: Financial Management: Theory & Practice, 16th + MindTap, 1 term Printed Access Card
16th Edition
ISBN: 9780357252673
Author: Brigham, Eugene F., EHRHARDT, Michael C.
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 1P
Summary Introduction
To determine: Break-even quantity.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Shapland Inc. has fixed operating costs of $500,000 and variable costs of $50per unit. If it sells the product for $75 per unit, what is the break-even quantity?
A company faces fixed costs of $100,000 and variable costs of $8.00/unit. They plan to directly sell their product to the market for $12.00. How many units must they produce and sell to break even?
Shalom Company manufactures Peace Products and sells it at P500 per unit. Variable
manufacturing costs to manufacture is P200 per unit, while it incurs P150 per unit to sell. The
fixed costs to manufacture and sell are P150,000 and P120,000, respectively. (1) How many units
should Shalom Company sell to break-even? (2) If the company targets to earn profit of P300,000,
how many units should Company sell?
Chapter 15 Solutions
Bundle: Financial Management: Theory & Practice, 16th + MindTap, 1 term Printed Access Card
Ch. 15 - Prob. 1QCh. 15 - What term refers to the uncertainty inherent in...Ch. 15 - Firms with relatively high nonfinancial fixed...Ch. 15 - “One type of leverage affects both EBIT and EPS....Ch. 15 - Why is the following statement true? Other things...Ch. 15 - Why do public utility companies usually have...Ch. 15 - Why is EBIT generally considered to be independent...Ch. 15 - If a firm went from zero debt to successively...Ch. 15 - Prob. 9QCh. 15 - Prob. 1P
Ch. 15 - Counts Accountings beta is 1.2 and its tax rate is...Ch. 15 - Ethier Enterprise has an unlevered beta of 1.0....Ch. 15 - Quillpen Company is unlevered and has a value of...Ch. 15 - Walkrun Inc. is unlevered and has a value of 400...Ch. 15 - Cruz Corporation has 100 billion of debt...Ch. 15 - Nichols Corporations value of operations is equal...Ch. 15 - Lee Manufacturings value of operations is equal to...Ch. 15 - Dye Trucking raised $150 million in new debt and...Ch. 15 - Schweser Satellites Inc. produces satellite earth...Ch. 15 - The Rivoli Company has no debt outstanding, and...Ch. 15 - Pettit Printing Company (PPC) has a total market...Ch. 15 - Beckman Engineering and Associates (BEA) is...Ch. 15 - F. Pierce Products Inc. is considering changing...Ch. 15 - A. Fethe Inc. is a custom manufacturer of guitars,...Ch. 15 - Start with the partial model in the file Ch15 P13...Ch. 15 - Assume you have just been hired as a business...Ch. 15 - Prob. 2MCCh. 15 - Prob. 3MCCh. 15 - To illustrate the effects of financial leverage...Ch. 15 - What happens to ROE for Firm U and Firm L if EBIT...Ch. 15 - What does capital structure theory attempt to do?...Ch. 15 - Prob. 7MCCh. 15 - Liu Industries is a highly levered firm. Suppose...Ch. 15 - How do companies manage the maturity structure of...
Knowledge Booster
Similar questions
- Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.arrow_forwardI want to answer this questionarrow_forwardMaggie Corp. has a selling price of $25 per unit, variable costs of $11 per unit, and fixed costs of $141,400. How many units must be sold to break even?arrow_forward
- XYZ Company sells a product for $250. The variable cost is $150 per unit. The fixed costs are $300,000. The company wants to have a profit of $400,000. How many units do they have to sell to achieve this goal?arrow_forwardMustang Corporation has a selling price of $22, variable costs of $12 per unit, and fixed costs of $51,000. How many units must be sold to break even?arrow_forwardA CERTAIN PRODUCT SELLS FOR $55. IT HAS VARIABLE COSTS OF $33 PER UNIT AND FIXED COSTS OF $300,000 PER YEAR. HOW MANY THE PRODUCTS MUST COMPANY MANUFACTURE TO BREAK EVEN?arrow_forward
- Halifax Products sells a product for $75. Variable costs per unit are $50, and monthly fixed costs are $75,000. Answer the following questions: Required: What is the break-even point in units? What unit sales would be required to earn a target profit of $200,000? Assuming Halifax achieve the level of sales required in part b, what is the margin of safety in sales dollars?arrow_forwardNeed answerarrow_forwardSwifty Corporation is planning to sell 810000 units for $1.50 per unit. The contribution margin ratio is 20% . If Swifty will break even at this level of sales, what are the fixed costs? O $810000 $567000. O $930000. $243000.arrow_forward
- Kent Company manufactures a product that sells for $54.00. Fixed costs are $341,000 and variable costs are $23.00 per unit. Kent can buy a new production machine that will increase fixed costs by $14,200 per year, but will decrease variable costs by $6.00 per unit. What effect would the purchase of the new machine have on Kent's break-even point in units?arrow_forwardJasmine Incorporated sells a product for $61 per unit. Variable costs per unit are $31, and monthly fixed costs are $252,000. Answer the following questions: Required: a. What is the breakeven point in units? b. What unit sales would be required to earn a target profit of $162,000 ? c. Assuming Jasmine achieves the level of sales required in part b, what is the margin of safety in sales dollars?arrow_forwardThe manufacturer of a product that has a variable cost of $2.50 per unit and total fixed cost of $117,000 wants to determine the level of output necessary to avoid losses. What level of sales is necessary to break-even if the product is sold for $4.35? Round your answer to the nearest whole number. units What will be the manufacturer’s profit or loss on the sales of 104,000 units? Round your answer to the nearest dollar. $ If fixed costs rise to $164,000, what is the new level of sales necessary to break-even? Round your answer to the nearest whole number. units If variable costs decline to $2.25 per unit, what is the new level of sales necessary to break-even? Round your answer to the nearest whole number. units If fixed costs were to increase to $164,000, while variable costs declined to $2.25 per unit, what is the new break-even level of sales? Round your answer to the nearest whole number. units If a major proportion of fixed costs were noncash (depreciation), would…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage Learning
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College