Break-even point: Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no- profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit. To calculate : The variable expenses per unit.

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Answer 1

Question

Chapter 2, Problem 2.14E

1.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The variable expenses per unit.

2.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The break-even point in unit sales and dollar sales.

3.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The required amount of unit sales and dollar sales is required to achieve a target profit of $60000 per year.

4.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: Company’s new break-even point in unit sales and in dollar sales upon assuming that if it uses a more efficient shipper and able to reduce variable expenses by $4 per unit. The dollar sales that is required to attain a target profit of $60000.

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Sharon Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Carla Vista Company's six divisions. Sharon made the following presentation to Carla Vista's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $25,300." The Other Five Divisions Percy Division Total Sales $1,663,000 $100,900 $1,763,900 Cost of goods sold 978,400 76,500 1,054,900 Gross profit 684,600 24,400 709,000 Operating expenses 528,500 49,700 578,200 Net income $156,100 $(25,300 ) $130,800 In the Percy Division, cost of goods sold is $60,100 variable and $16,400 fixed, and operating expenses are $29,100 variable and $20,600 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Sharon right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts using either a negative sign preceding…

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Answer 2

Question

Chapter 2, Problem 2.14E

1.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The variable expenses per unit.

2.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The break-even point in unit sales and dollar sales.

3.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The required amount of unit sales and dollar sales is required to achieve a target profit of $60000 per year.

4.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: Company’s new break-even point in unit sales and in dollar sales upon assuming that if it uses a more efficient shipper and able to reduce variable expenses by $4 per unit. The dollar sales that is required to attain a target profit of $60000.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 2, Problem 2.14E

1.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The variable expenses per unit.

2.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The break-even point in unit sales and dollar sales.

3.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The required amount of unit sales and dollar sales is required to achieve a target profit of $60000 per year.

4.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: Company’s new break-even point in unit sales and in dollar sales upon assuming that if it uses a more efficient shipper and able to reduce variable expenses by $4 per unit. The dollar sales that is required to attain a target profit of $60000.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 2, Problem 2.14E

1.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The variable expenses per unit.

2.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The break-even point in unit sales and dollar sales.

3.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The required amount of unit sales and dollar sales is required to achieve a target profit of $60000 per year.

4.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: Company’s new break-even point in unit sales and in dollar sales upon assuming that if it uses a more efficient shipper and able to reduce variable expenses by $4 per unit. The dollar sales that is required to attain a target profit of $60000.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 2, Problem 2.14E

1.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The variable expenses per unit.

2.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The break-even point in unit sales and dollar sales.

3.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The required amount of unit sales and dollar sales is required to achieve a target profit of $60000 per year.

4.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: Company’s new break-even point in unit sales and in dollar sales upon assuming that if it uses a more efficient shipper and able to reduce variable expenses by $4 per unit. The dollar sales that is required to attain a target profit of $60000.

Answer 6

Chapter 2, Problem 2.14E

1.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The variable expenses per unit.

Answer 7

Chapter 2, Problem 2.14E

1.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The variable expenses per unit.

Answer 8

2.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The break-even point in unit sales and dollar sales.

Answer 9

2.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The break-even point in unit sales and dollar sales.

Answer 10

3.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The required amount of unit sales and dollar sales is required to achieve a target profit of $60000 per year.

Answer 11

3.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: The required amount of unit sales and dollar sales is required to achieve a target profit of $60000 per year.

Answer 12

4.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: Company’s new break-even point in unit sales and in dollar sales upon assuming that if it uses a more efficient shipper and able to reduce variable expenses by $4 per unit. The dollar sales that is required to attain a target profit of $60000.

Answer 13

4.

To determine

Introduction:

Break-even point:

Break-even point is defined as the volume of production where the total cost is equal to the total sales revenue generated thereby resulting in a no-profit and no loss situation. At the break-even point, the contribution earned is sufficient to cover the costs, whereas if the contribution is less than the break-even point then it is a loss and if it is more, then it is a profit.

To calculate: Company’s new break-even point in unit sales and in dollar sales upon assuming that if it uses a more efficient shipper and able to reduce variable expenses by $4 per unit. The dollar sales that is required to attain a target profit of $60000.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 2 - Prob. 2.1Q Ch. 2 - Prob. 2.2Q Ch. 2 - Prob. 2.3Q Ch. 2 - Prob. 2.4Q Ch. 2 - Prob. 2.5Q Ch. 2 - Prob. 2.6Q Ch. 2 - Prob. 2.7Q Ch. 2 - Prob. 2.8Q Ch. 2 - Prob. 2.9Q Ch. 2 - Prob. 1AE

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