HomeworkLib
Question

16. XPA Inc, sells a single product for $22 per unit. Variable costs are $10 per unit, and the fixed costs are $30,000 per ye
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answers

  • Answer #16
    >At break even level, there is neither any net income or net loss.
    >Any no of unit less than that level will result in losses, and any no of units more than breakeven level will result in profit.
    >The profit earned per unit will be equal to contribution margin per unit which is Sale price – Variable cost
    = $ 22 - $ 10
    = $ 12 per unit
    >Correct Answer = Option ‘B’ $ 12.00 per unit
  • Answer #17
    >At break even level, contribution margin = fixed expenses
    >Hence, contribution margin for 20000 units = $ 180000
    >Sale revenue for 20000 units = 20000 units x $ 20 = $ 400,000
    >Variable cost for 20000 units = $ 400000 sales - $ 180000 contribution margin = $ 220,000
    >Variable cost for 25000 units = ($220000 / 20000 units) x 25000 units
    = $ 275,000

>Correct Answer = Option ‘C’ $ 275,000

0 0
Add a comment
Know the answer?
Add Answer to:
16. XPA Inc, sells a single product for $22 per unit. Variable costs are $10 per...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Cost-Volume-Profit Analysis Gannon Company sells a single product for $15 per unit. Variable costs are $10...

    Cost-Volume-Profit Analysis Gannon Company sells a single product for $15 per unit. Variable costs are $10 per unit and fixed costs are $180,000 at an operating level of 16,000 to 30,000 units. a. What is Gannon Company's break-even point in units? units b. How many units must be sold to earn $20,000 before income tax? units c. How many units must be sold to earn $30,000 after income tax, assuming a 40% tax rate? units

  • XYZ Inc. sells a single product for $10 per unit. Variable production costs are $5 per...

    XYZ Inc. sells a single product for $10 per unit. Variable production costs are $5 per unit. Fixed overhead costs amount $10,000 per month. Variable selling costs are $2 per unit. Fixed selling costs are $5,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. What were XYZ's total selling costs incurred last period? What was XYZ's net income last month? What is XYZ's contribution margin per unit? What were XYZ's total production costs incurred last...

  • Lights manufacturing produces a single product that sells for $130. variable costs per unit equal $55....

    Lights manufacturing produces a single product that sells for $130. variable costs per unit equal $55. the company expects total fixed costs to be $100,000 for the next month at the projected sales level of 1,300 units. What is the current breakeven point in terms of number of units? a. 770 units b 1,334 units c. 541 units d. 1,819 units

  • Zealz Manufacturing produces a single product that sells for $90. Variable costs per unit equal $30....

    Zealz Manufacturing produces a single product that sells for $90. Variable costs per unit equal $30. The company expects total fixed costs to be $70,000 for the next month at the projected sales level of 2300 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. What is the current breakeven point in terms of number of units?

  • XYZ Inc. sells a single product for $10 per unit. Variable production costs are $6 per unit. Fixed overhead costs amount...

    XYZ Inc. sells a single product for $10 per unit. Variable production costs are $6 per unit. Fixed overhead costs amount $10,000 per month. Variable selling costs are $1 per unit. Fixed selling costs are $5,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. What was XYZ's net income last month?

  • Jasmine Inc. sells a product for $56 per unit. Variable costs per unit are $33, and...

    Jasmine Inc. sells a product for $56 per unit. Variable costs per unit are $33, and monthly fixed costs are $211,600. a. What is the break-even point in units? Break-Even Point units b. What unit sales would be required to eam a target profit of $75,900? Total Required Sales units c. Assume they achieve the level of sales required in part b, what is the margin of safety in sales dollars? Margin of Safety

  • Hailstorm company sells a single product for $22 per unit. variable costs are $14 per unit...

    Hailstorm company sells a single product for $22 per unit. variable costs are $14 per unit and fixed costs are 60000 at an operating level of 7,000 to 12000 units. what is Hailstorm Company's break even point in units

  • Zhao Co. has fixed costs of $245,000. Its single product sells for $155 per unit, and...

    Zhao Co. has fixed costs of $245,000. Its single product sells for $155 per unit, and variable costs are $106 per unit. If the company expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales. Dollars Percent Margin of safety % US-Mobile manufactures and sells two products, tablet computers and smartphones, in the ratio of 4:2. Fixed costs are $90,860, and the contribution margin per composite unit is $118. What number...

  • I. A company sells a product which has a unit sales price of $10, unit variable...

    I. A company sells a product which has a unit sales price of $10, unit variable cost of $5 and total fixed costs of $280,000. The number of units the company must sell to break even is: 2. At the breakeven point of 3.000 units, variable costs are $300,000, and fixed costs are S180,000. How much is the selling price per unit? 3. A company has total fixed costs of $160,000 and a contribution margin ratio of 20%. The total...

  • Sarafine, Inc. sells a single product for $21. Variable costs are $7 per unit and fixed...

    Sarafine, Inc. sells a single product for $21. Variable costs are $7 per unit and fixed costs total $182,000 at a volume level of 4,500 units. Assuming that fixed costs do not change, Sarafine's break- even sales would be: Multiple Choice $233,000 $273,000. $373,000. $553,000

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT