Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production. The break-even point in unit sales assuming N does not hire the outside supplier.

Question

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Answer 1

Question

Chapter 5, Problem 25P

1.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The break-even point in unit sales assuming N does not hire the outside supplier.

2.

a.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit with N earn assuming it produces and sells 18,000 units.

2.

b.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit with N.

3.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

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

4.

a.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The total unit sales would N need to achieve in order to equal the profit earned in requirement 2a.

4.

b.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The total unit sales would N need to achieve in order to attain a target profit of $16,500 per month.

4.

c.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit will N earn if it sells 35,000 units per month.

4.

d.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of net profit.

5.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of net profit.

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Financial Accounting Parker Manufacturing's piece rate workers produced 2,000 units at $4 per unit. Minimum wage guarantee $7,500. Calculate the wages payable to workers.

Answer 2

Question

Chapter 5, Problem 25P

1.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The break-even point in unit sales assuming N does not hire the outside supplier.

2.

a.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit with N earn assuming it produces and sells 18,000 units.

2.

b.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit with N.

3.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

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

4.

a.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The total unit sales would N need to achieve in order to equal the profit earned in requirement 2a.

4.

b.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The total unit sales would N need to achieve in order to attain a target profit of $16,500 per month.

4.

c.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit will N earn if it sells 35,000 units per month.

4.

d.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of net profit.

5.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of net profit.

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Answer 3

Question

Chapter 5, Problem 25P

1.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The break-even point in unit sales assuming N does not hire the outside supplier.

2.

a.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit with N earn assuming it produces and sells 18,000 units.

2.

b.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit with N.

3.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

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

4.

a.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The total unit sales would N need to achieve in order to equal the profit earned in requirement 2a.

4.

b.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The total unit sales would N need to achieve in order to attain a target profit of $16,500 per month.

4.

c.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit will N earn if it sells 35,000 units per month.

4.

d.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of net profit.

5.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of net profit.

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 25P

1.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The break-even point in unit sales assuming N does not hire the outside supplier.

2.

a.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit with N earn assuming it produces and sells 18,000 units.

2.

b.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit with N.

3.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

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

4.

a.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The total unit sales would N need to achieve in order to equal the profit earned in requirement 2a.

4.

b.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The total unit sales would N need to achieve in order to attain a target profit of $16,500 per month.

4.

c.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit will N earn if it sells 35,000 units per month.

4.

d.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of net profit.

5.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of net profit.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 5, Problem 25P

1.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The break-even point in unit sales assuming N does not hire the outside supplier.

2.

a.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit with N earn assuming it produces and sells 18,000 units.

2.

b.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit with N.

3.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

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

4.

a.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The total unit sales would N need to achieve in order to equal the profit earned in requirement 2a.

4.

b.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The total unit sales would N need to achieve in order to attain a target profit of $16,500 per month.

4.

c.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit will N earn if it sells 35,000 units per month.

4.

d.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of net profit.

5.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of net profit.

Answer 6

Chapter 5, Problem 25P

1.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The break-even point in unit sales assuming N does not hire the outside supplier.

Answer 7

Chapter 5, Problem 25P

1.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The break-even point in unit sales assuming N does not hire the outside supplier.

Answer 8

2.

a.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit with N earn assuming it produces and sells 18,000 units.

Answer 9

2.

a.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit with N earn assuming it produces and sells 18,000 units.

Answer 10

2.

b.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit with N.

Answer 11

2.

b.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit with N.

Answer 12

3.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

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

Answer 13

3.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

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

Answer 14

4.

a.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The total unit sales would N need to achieve in order to equal the profit earned in requirement 2a.

Answer 15

4.

a.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The total unit sales would N need to achieve in order to equal the profit earned in requirement 2a.

Answer 16

4.

b.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The total unit sales would N need to achieve in order to attain a target profit of $16,500 per month.

Answer 17

4.

b.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The total unit sales would N need to achieve in order to attain a target profit of $16,500 per month.

Answer 18

4.

c.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit will N earn if it sells 35,000 units per month.

Answer 19

4.

c.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of profit will N earn if it sells 35,000 units per month.

Answer 20

4.

d.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of net profit.

Answer 21

4.

d.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of net profit.

Answer 22

5.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of net profit.

Answer 23

5.

To determine

Concept introduction:

Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.

The amount of net profit.

Answer 24

Expert Solution & Answer

Answer 25

Expert Solution & Answer

Answer 26

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Check out a sample textbook solution

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Answer 27

Ch. 5.A - EXERCISE 5A-1 High-Low Method LO5-10 The Cheyenne...Ch. 5.A - EXERCISE 5A-2 Least-Squares Regression LO5-11...Ch. 5.A - EXERCISE 5A-3 Cost Behavior; High-Low Method...Ch. 5.A - Prob. 4E Ch. 5.A - EXERCISE 5A-5 Least-Squares Regression LO5-11...Ch. 5.A - Prob. 6P Ch. 5.A - Problem 5A-7 Cost Behavior; High-Low Method;...Ch. 5.A - Problem 5A-8 High-Low Method; Predicting Cost...Ch. 5.A - Prob. 9P Ch. 5.A - Prob. 10P

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Chapter 5 Solutions