If we sold 10,000 units, had variable costs of $10 per unit, fixed costs of $125,000,...

Question

Question

If we sold 10,000 units, had variable costs of $10 per unit, fixed costs of $125,000,...

If we sold 10,000 units, had variable costs of $10 per unit, fixed costs of $125,000, and net income of $50,000. What is the selling price per unit?

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Let selling price per unit be x

(Contribution margin per unit * units sold) - Fixed cost = Net income

Contribution margin per unit = Selling price per unit - Variable costs per unit

(x - 10)* 10,000 units - 125,000 = 50,000

(x - 10) = (50,000+125,000)/10,000

x - 10 = 17.50

x = 17.50 + 10

Selling price per unit = 27.50

Add a comment

Answer 2

Similar Homework Help Questions

Current: 5,500,000 units sold per year at $0.50 per unit. Fixed costs are $1,140,000 annually. Variable...

Current: 5,500,000 units sold per year at $0.50 per unit. Fixed costs are $1,140,000 annually. Variable costs are $0.20 per unit. 20% increase in fixed costs and a 20% increase in units sold results in a new operating (gain or loss) of____________? 40% decrease in fixed costs, with a 40% decrease in selling price, 10% decrease in variable cost per unit, and a 45% increase in units sold results in a new operating (gain or loss) of____________? What is the...
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?
UNITS PRODUCED AND SOLD 50,000 100,000 200,000 TOTAL COSTS VARIABLE COSTS FIXED COSTS 50,000 TOTA...

UNITS PRODUCED AND SOLD 50,000 100,000 200,000 TOTAL COSTS VARIABLE COSTS FIXED COSTS 50,000 TOTAL COSTS COST PER UNIT VARIABLE COST FIXED COST 50.25 TOTAL COST PER UNIT ASSUME THE COMPANY SELLS 200,000 UNITS FOR S1/UNIT PREPARE A CONTRIBUTION FORMAT INCOME STATEMENT 1 cost behavior patterns include: (aj variable costs (b)fixed costs (c) mixed costs (d) all of the above 2 fixed costs: (a) remain the same in total (b) vary per unit (c) remain constant per unit (d) vary...

eBook Show Me How Calculator 10,000 Units produced Units sold ($60 per unit) Variable costs per...

eBook Show Me How Calculator 10,000 Units produced Units sold ($60 per unit) Variable costs per unit: 8,800 Direct materials Direct labor Variable overhead $12 $7 $5 Fixed costs: Fixed overhead per unit produced Fixed selling and administrative $8 $138,000 Required 1. Calculate the cost of goods sold under variable costing. Feedback Y Chack My Work Determine per-unit cost under variable costing and apply the unit cost to the number Cost of Goods Sold Units sold x Unit cost Check...
Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs...

Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs (LO5-1, LO5-4) Meer Company's contribution format income statement for the most recent month is shown below. Per Unit $10.00 Sales (33.000 nits) Variable expenses Contribution margin Fixed expenses perating con Required: (Consider each case independently 1 What is the revised net operating income funit sales increase by 10%? 2 What is the revised net operating income of the selling price decreases by $150 per...
Mandolin produced 70,000 units and sold 50,000 units. Their unit selling price is $20 and they...

Mandolin produced 70,000 units and sold 50,000 units. Their unit selling price is $20 and they have variable unit production costs of $10, variable selling expenses of three dollars and fixed overhead of $10,000. Compute Mandolin's net income under variable costing.

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...
Exercise 2-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed...

Exercise 2-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO2-1, LO2-4] Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (32,000 units) $ 320,000 $ 10.00 Variable expenses 224,000 7.00 Contribution margin 96,000 $ 3.00 Fixed expenses 50,000 Net operating income $ 46,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 19%? 2....
A company had sales of $4,600,000 (40,000 units); Variable costs of $60 per unit; and Fixed...

A company had sales of $4,600,000 (40,000 units); Variable costs of $60 per unit; and Fixed costs of $600,000... -What was the average sale price per unit? -What was the contribution margin per unit? -What was the total contribution margin? -What was the income before taxes for the year?

Kubick Company produced 10,000 units and sold 9,000 units Sales price $9 per unit Costs were...

Kubick Company produced 10,000 units and sold 9,000 units Sales price $9 per unit Costs were as follows: Direct materials $1.00 per unit Direct labor $1.50 per unit Variable manufacturing overhead $.50 per unit Fixed manufacturing overhead total $20,000 Variable selling expense $.80 per unit Fixed administrative expense total $17,000 There was no beginning inventory. Determine cost of goods sold using the absorption-costing approach. Group of answer choices

If we sold 10,000 units, had variable costs of $10 per unit, fixed costs of $125,000,...

Homework Answers

Add Answer to:
If we sold 10,000 units, had variable costs of $10 per unit, fixed costs of $125,000,...

Post as a guest

Earn Coins

Current: 5,500,000 units sold per year at $0.50 per unit. Fixed costs are $1,140,000 annually. Variable...

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

UNITS PRODUCED AND SOLD 50,000 100,000 200,000 TOTAL COSTS VARIABLE COSTS FIXED COSTS 50,000 TOTA...

eBook Show Me How Calculator 10,000 Units produced Units sold ($60 per unit) Variable costs per...

Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs...

Mandolin produced 70,000 units and sold 50,000 units. Their unit selling price is $20 and they...

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

Exercise 2-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed...

A company had sales of $4,600,000 (40,000 units); Variable costs of $60 per unit; and Fixed...

Kubick Company produced 10,000 units and sold 9,000 units Sales price $9 per unit Costs were...

If we sold 10,000 units, had variable costs of $10 per unit, fixed costs of $125,000,...

Homework Answers

Add Answer to: If we sold 10,000 units, had variable costs of $10 per unit, fixed costs of $125,000,...

Post as a guest

Earn Coins

Add Answer to:
If we sold 10,000 units, had variable costs of $10 per unit, fixed costs of $125,000,...