Homework Answers
(a) Under equation method, break even point is calculated as per below:
Break even point in units = Fixed cost / Selling price per unit - Variable cost per unit
Putting the values in the above equation, we get,
Break even point in units = $301000 / ($18 - $4)
Break even point in units = $301000 / $14 = 21500 units
Break even point in dollars = Price per unit * Break even point in units
Putting the values in the above equation, we get,
Break even point in dollars = $18 * 21500 = $387000
(b) Sales volume in units to earn desired profit = Fixed cost + Desired profit / Selling price per unit - Variable cost per unit
Putting the values in the above equation, we get,
Sales volume in units to earn desired profit = ($301000 + $46200) / ($18 - $4)
Sales volume in units to earn desired profit = $347200 / $14 = 24800 units
Sales in dollars = Price per unit * Sales volume in units to earn desired profit
Putting the values in the above equation, we get,
Sales in dollars = $18 * 24800 = $446400
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Exercise 3-1A Equation method LO 3-1 Campbell Corporation produces products that it sells for $18 each....
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Exercise 3-1A Equation method LO 3-1 Vernon Corporation produces products that it sells for $13 each. Variable costs per unit are $6, and annual fixed costs are $142,100. Vernon desires to earn a profit of $24,500. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. a. Break-even point in units Break-even point in dollars b. Sales volume in units...
Q.1 Rooney Corporation produces products that it sells for $18 each. Variable costs per unit are...
Q.1
Rooney Corporation produces products that it sells for $18 each.
Variable costs per unit are $9, and annual fixed costs are
$189,900. Rooney desires to earn a profit of $33,300.
Required
Use the equation method to determine the break-even point in
units and dollars.
Determine the sales volume in units and dollars required to earn
the desired profit.
a. Break-even point in units Break-even point in dollars b. Sales volume in units Sales in dollars
Franklin Corporation produces products that it sells for $18 each. Variable costs per unit are $6,...
Franklin Corporation produces products that it sells for $18 each. Variable costs per unit are $6, and annual fixed costs are $241,200. Franklin desires to earn a profit of $58,800. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. a Break-even point in units Break-even point in dollars b. Sales volume in units Sales in dollars
Baird Corporation produces products that it sells for $21 each. Variable costs per unit are $6,...
Baird Corporation produces products that it sells for $21 each. Variable costs per unit are $6, and annual fixed costs are $303,000. Baird desires to earn a profit of $49,500. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit." a Break-even point in units Break-even point in dollars b. Sales volume in units Sales in dollars
Vernon Corporation produces products that it sells for $19 each. Variable costs per unit are $9,...
Vernon Corporation produces products that it sells for $19 each. Variable costs per unit are $9, and annual fixed costs are $206,000. Vernon desires to earn a profit of $41,000. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. Answer is complete but not entirely correct. a. Break-even point in units Break-even point in dollars Sales volume in units...
Finch Corporation produces products that it sells for $21 each. Variable costs per unit are $4,...
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Is this correct? If not, what are the correct answers? Rundle Corporation produces products that it...
Is this correct? If not, what are the correct answers?
Rundle Corporation produces products that it sells for $16 each. Variable costs per unit are $4, and annual fixed costs are $259,200. Rundle desires to earn a profit of $31,200. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. ſ $ a. Break-even point in units Break-even point in...
Exercise 3-2A Per-unit contribution margin approach LO 3-1 Solomon Corporation sells products for $38 each that...
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Exercise 3-1A Equation method LO 3-1 Vernon Corporation produces products that it sells for $13 each. Variable costs per unit are $6, and annual fixed costs are $142,100. Vernon desires to earn a profit of $24,500. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. a. Break-even point in units Break-even point in dollars b. Sales volume in units...
Q.1
Rooney Corporation produces products that it sells for $18 each.
Variable costs per unit are $9, and annual fixed costs are
$189,900. Rooney desires to earn a profit of $33,300.
Required
Use the equation method to determine the break-even point in
units and dollars.
Determine the sales volume in units and dollars required to earn
the desired profit.
a. Break-even point in units Break-even point in dollars b. Sales volume in units Sales in dollars
Franklin Corporation produces products that it sells for $18 each. Variable costs per unit are $6, and annual fixed costs are $241,200. Franklin desires to earn a profit of $58,800. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. a Break-even point in units Break-even point in dollars b. Sales volume in units Sales in dollars
Baird Corporation produces products that it sells for $21 each. Variable costs per unit are $6, and annual fixed costs are $303,000. Baird desires to earn a profit of $49,500. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit." a Break-even point in units Break-even point in dollars b. Sales volume in units Sales in dollars
Vernon Corporation produces products that it sells for $19 each. Variable costs per unit are $9, and annual fixed costs are $206,000. Vernon desires to earn a profit of $41,000. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. Answer is complete but not entirely correct. a. Break-even point in units Break-even point in dollars Sales volume in units...
Is this correct? If not, what are the correct answers?
Rundle Corporation produces products that it sells for $16 each. Variable costs per unit are $4, and annual fixed costs are $259,200. Rundle desires to earn a profit of $31,200. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. ſ $ a. Break-even point in units Break-even point in...
Exercise 3-2A Per-unit contribution margin approach LO 3-1 Solomon Corporation sells products for $38 each that have variable costs of $20 per unit. Solomon's annual fixed cost is $430,200. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Break-even point in units Break-even point in dollars
Campbell Corporation sells products for $44 each that have variable costs of $9 per unit. Campbell's annual fixed cost is $794,500. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Break-even point in units Break-even point in dollars
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