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Concept explainers
Concept Introduction:
Breakeven point: Breakeven point is the level of output at which the sales is equal to the total cost and there is no profit or loss. Breakeven point in units is calculated with the help of following formula:
1.a. Breakeven point with no change in information:
To determine: The Breakeven point with no change in information
1.b. Breakeven point with decrease in sales price to $544 per student:
To determine: The Breakeven point with decrease in sales price
1.c. Breakeven point with decrease in variable cost to $340 per student:
To determine: The Breakeven point with decrease in variable cost
1.d. Breakeven point with decrease in fixed cost to $53040:
To determine: The Breakeven point with decrease in fixed cost
2. Comparison of impact of changes:
To show: The Comparison of impact of changes in the sales price, variable costs, fixed costs on the contribution margin per unit and the breakeven point in units
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Chapter 21 Solutions
Horngren's Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (12th Edition)
- The standard materials cost of TimberCraft's product is $60 per unit, based on 15 pounds of raw materials at a standard cost of $4 per pound. During March 20X9, 2,000 units of product were produced, using 30,800 pounds of raw material at a cost of $4.50 per pound. a) The standard cost for materials for March is __. b) The total materials variance for the month is __. c) The materials quantity variance is __. d) The materials price variance is __.arrow_forwardHow much lower would net income be if it used variable costing?arrow_forwardcan you please solve thisarrow_forward
- Please given answer general accounting questionarrow_forwardThe following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2024: Accounts Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/24 Current assets Copyrights Royalty agreements Penske $ (700,000) 250,000 150,000 Not given 80,000 (600,000) 400,000 Investment in Stanza Liabilities Common stock Additional paid-in capital Stanza $ (400,000) 100,000 200,000 Ө 60,000 (200,000) 500,000 400,000 900,000 600,000 1,000,000 Not given (500,000) Ө (1,380,000) (600,000) ($20 par) (150,000) (200,000) ($10 par) (80,000) Note: Parentheses indicate a credit balance. On January 1, 2024, Penske acquired all of Stanza's outstanding stock for $680,000 fair value in cash and common stock. Penske also paid $10,000 in stock issuance costs. At the date of acquisition, copyrights (with a six-year remaining life) have a $440,000 book value but a fair value of $560,000. Required: a. As of December 31, 2024, what is…arrow_forwardMCQarrow_forward
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