Clark Zealand Co. has total fixed costs of $160,000. Its product sells for $40 per unit...
Clark Zealand Co. has total fixed costs of $160,000. Its product sells for $40 per unit and variable costs amount to $30 per unit. What is the break-even point in dollar sales? Use the formula(s) that were introduced in this chapter. Hint: the BV point in dollar sales will be a number greater than $500,000
Homework Answers
Contribution margin=Sales-Variable costs
=(40-30)=$10
Contribution margin ratio=Contribution margin/Sales
=(10/40)=0.25
Hence breakeven sales=Fixed costs/Contribution margin ratio
(160,000/0.25)
which is equal to
=$640,000.
Add Answer to:
Clark Zealand Co. has total fixed costs of $160,000. Its product
sells for $40 per unit...
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...
Hardy Co. manufactures a product that sells for $12 per unit. Total fixed costs are $96,000...
Hardy Co. manufactures a product that sells for $12 per unit. Total fixed costs are $96,000 and variable costs are $7 per unit. Hardy can buy a newer production machine that will increase total fixed costs by $22,800 but variable costs will be decreased by $0.40 per unit. Answer the following (3 points each). A. Current break-even point in units B. New break-even point in units 5. Difference in break-even points in dollars
Zhao Co. has fixed costs of $275,600. Its single product sells for $161 per unit, and...
Zhao Co. has fixed costs of $275,600. Its single product sells
for $161 per unit, and variable costs are $109 per unit. The
company expects sales of 10,000 units. Prepare a contribution
margin income statement for the year ended December 31, 2019.
Exercise 21-8 Contribution margin LO A1 A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $330 per pair and cost $260.70 per pair in variable costs to make. (Round your...
Wang Co. manufactures and sells a single product that sells for $300 per unit; variable costs...
Wang Co. manufactures and sells a single product that sells for $300 per unit; variable costs are $174. Annual fixed costs are $852,600. Current sales volume is $4,230,000. Compute the break-even point in units. Wang Co. manufactures and sells a single product that sells for $250 per unit; variable costs are $145 per unit. Annual fixed costs are $873,600. Current sales volume is $4,280,000. Management targets an annual pre-tax income of $1,205,000. Compute the unit sales to earn the target...
Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs...
Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs are $270 per unit. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the break-even point in dollars. $1,740,000. $2,000,000. $1,304,348. $4,202,899. $2,640,000.
Partner Industries sells a single product for $50 that has a variable cost of $40. Fixed costs amount to $5 per unit whe...
Partner Industries sells a single product for $50 that has a variable cost of $40. Fixed costs amount to $5 per unit when anticipated sales targets are met. If the company sells one unit in excess of its break-even volume, profit will be:
Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs...
Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs are $270 per unit. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the break-even point in dollars. Multiple Choice $1,740,000 • $2,000,000 0 $1,304,348 0 $4,202,899. 0 $2,640,000.
Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs...
Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs are $270. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the break-even point in units. Multiple Choice 5,500. 1,933. 4,444. 2,900. 1,160.
SBD Phone Company sells its waterproof phone case for $96 per unit. Fixed costs total $177,000,...
SBD Phone Company sells its waterproof phone case for $96 per unit. Fixed costs total $177,000, and variable costs are $48 per unit. (1) Determine the contribution margin ratio. Contribution margin Contribution margin ratio Choose Numerator: Choose Denominator: - Contribution margin ratio Contribution margin ratio (2) Determine the break-even point in dollars. Choose Numerator: Choose Denominator Break Even Point in Dollars Break-even point in dollars Zhao Co. has fixed costs of $275,600. Its single product sells for $161 per unit,...
Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit...
Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The company's fixed expenses are $180,000 per year. The company plans to sell 16,000 units this year. Required: 1. What are the variable expenses per unit? 2. What is the break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is required to attain a target profit of $60,000...
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...
Hardy Co. manufactures a product that sells for $12 per unit. Total fixed costs are $96,000 and variable costs are $7 per unit. Hardy can buy a newer production machine that will increase total fixed costs by $22,800 but variable costs will be decreased by $0.40 per unit. Answer the following (3 points each). A. Current break-even point in units B. New break-even point in units 5. Difference in break-even points in dollars
Zhao Co. has fixed costs of $275,600. Its single product sells
for $161 per unit, and variable costs are $109 per unit. The
company expects sales of 10,000 units. Prepare a contribution
margin income statement for the year ended December 31, 2019.
Exercise 21-8 Contribution margin LO A1 A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $330 per pair and cost $260.70 per pair in variable costs to make. (Round your...
Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs are $270 per unit. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the break-even point in dollars. Multiple Choice $1,740,000 • $2,000,000 0 $1,304,348 0 $4,202,899. 0 $2,640,000.
SBD Phone Company sells its waterproof phone case for $96 per unit. Fixed costs total $177,000, and variable costs are $48 per unit. (1) Determine the contribution margin ratio. Contribution margin Contribution margin ratio Choose Numerator: Choose Denominator: - Contribution margin ratio Contribution margin ratio (2) Determine the break-even point in dollars. Choose Numerator: Choose Denominator Break Even Point in Dollars Break-even point in dollars Zhao Co. has fixed costs of $275,600. Its single product sells for $161 per unit,...
Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The company's fixed expenses are $180,000 per year. The company plans to sell 16,000 units this year. Required: 1. What are the variable expenses per unit? 2. What is the break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is required to attain a target profit of $60,000...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago