Question

Merlot, Inc. has fixed costs of $235,000, sales price of $55, and variable cost of $39 per unit. How many units must be sold to earn profit of $37,000? O 7000 O 14,500 O 24,500 O 17000

0 0
Add a comment Improve this question Transcribed image text
Answer #1

SOLUTION Formula for No. of units required to be sold to earn the desired profit: Fixed cost+ desired profit # Contribution p

Add a comment
Know the answer?
Add Answer to:
Merlot, Inc. has fixed costs of $235,000, sales price of $55, and variable cost of $39...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

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
  • Designer Jackets, Inc. produces blazers and has the following data available on these products. Sales price...

    Designer Jackets, Inc. produces blazers and has the following data available on these products. Sales price per unit $ 280 Variable cost per unit 120 Fixed costs per month 16,000 Tax rate 20 percent (1) How many units must be sold to earn a monthly profit of $150,000 after taxes? (2) How many sales dollars are required to earn a monthly profit of $150,000 after taxes?

  • CVP and Sensitivity Analysis (Single Product). Victoria, Inc., has annual fixed costs totaling $240,000 and variable...

    CVP and Sensitivity Analysis (Single Product). Victoria, Inc., has annual fixed costs totaling $240,000 and variable costs of $6 per unit. Each unit of product is sold for $30. Victoria expects to sell 12,000 units this year (this is the base case). Required: Find the break-even point in units. How many units must be sold to earn an annual profit of $100,000? (Round to the nearest unit.) Find the break-even point in sales dollars. What amount of sales dollars is...

  • Designer Jackets, Inc. produces blazers and has the following data available on these products. Sales price per uni...

    Designer Jackets, Inc. produces blazers and has the following data available on these products. Sales price per unit $ 280 Variable cost per unit 120 Fixed costs per month 16,000 Tax rate 20 percent (1) How many units must be sold to earn a monthly profit of $150,000 after taxes? (2) How many sales dollars are required to earn a monthly profit of $150,000 after taxes? SHOW YOUR WORK HTML Editore BIŲ A-A-I EX3 - O P NV G O...

  • 3) Saints Industries has fixed costs of $800,000. Selling price per unit is $340, and variable...

    3) Saints Industries has fixed costs of $800,000. Selling price per unit is $340, and variable cost per unit is $140. Determine: A) How many units must Saints sell in order to break even? B) How many units must Saints sell in order to earn a profit of $500,000?) If they were to add a new event that would cost $6,800, how many more units must be sold to cover the cost?

  • 29. Webber, Inc. developed the following information for its product: Per Unit Sales price $90 Variable...

    29. Webber, Inc. developed the following information for its product: Per Unit Sales price $90 Variable cost 63 Boone Contribution margin $27 Total fixed costs $1.215.000 Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers. 1. How many units must be sold to break even? 2. What is the total sales that must be generated for the company to earn a profit of $60,000? 3. If the company is presently selling...

  • 29. Webber, Inc. developed the following information for its product: Per Unit Sales price $90 Variable...

    29. Webber, Inc. developed the following information for its product: Per Unit Sales price $90 Variable cost 63 Contribution margin $27 Total fixed costs $1.215.000 Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers. 1. How many units must be sold to break even? 2. What is the total sales that must be generated for the company to earn a profit of $60,000? 3. If the company is presently selling 50,000...

  • 19. The folowing information relates to a product. Fixed costs Required profit Selling price per unit...

    19. The folowing information relates to a product. Fixed costs Required profit Selling price per unit Variable cost per unit 72000 30000 10 4 How many units must be produced and sold to cover fixed costs and make the required profit? a. 12000 b. 17000 c. 18000 d. 25500

  • Webber, Inc. developed the following information for its product: Sales price Variable cost Contribution margin Total...

    Webber, Inc. developed the following information for its product: Sales price Variable cost Contribution margin Total fixed costs Per Unit $90 63 $27 215,000 Answer the following independent questions. How many units must be sold to break even? Number of units to be sold By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor

  • Baker Inc. has the following product information available for 2019: Sales price $20 per unit Variable...

    Baker Inc. has the following product information available for 2019: Sales price $20 per unit Variable costs $8 per unit Fixed costs $18,000 Units produced and sold 12,000 What total sales revenue is needed in order for Baker Inc. to earn a target profit before tax of $540,000? Select one: O a. $1,150,515 O b. $1,395,000 OC. $1,062,857 O d. $ 930,000 e. $ 900,000 f. $ 334,800 O

  • If sales are $820,000, variable costs are 55% of sales, and operating income is $260,000, what...

    If sales are $820,000, variable costs are 55% of sales, and operating income is $260,000, what is the contribution margin ratio? a. 45% b. 55% c. 62% d. 32% ________2. A firm operated at 90% of capacity for the past year, during which fixed costs were $420,000, variable costs were 40% of sales, and sales were $1,000,000. Operating profit was: a. $180,000 b. $420,000 c. $1,080,000 d. $980,000 ________3. Bryce Co. sales are $914,000, variable costs are $498,130, and operating...

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