Biscuit Company sells its product for $50. In addition, it has a variable cost ratio of...
Biscuit Company sells its product for $50. In addition, it has a variable cost ratio of 45 percent and total fixed costs of $6,875. What is the break-even point in units for Biscuit Company?
a. 250 units
b. 3,600 units
c. 375 units
d. 2,400 units
8. Biscuit Company sells its product for $50. In addition, it has a variable cost ratio of 55 percent and total fixed costs of $6,875. How many units must be sold in order to obtain a before-tax profit of $12,000?
a. 480 units
b. 240 units
c. 600 units
d. 839 units
9. Biscuit Company sells its product for $50. In addition, it has a variable cost ratio of 45 percent and total fixed costs of $6,875. What is the break-even point in sales dollars for Biscuit Company?
a. $2,750
b. $3,125
c. $6,875
d. $12,500
Homework Answers
| Solution: | ||||||||||
| Q7: | Break-even point in units for Biscuit Company is calculated below: | |||||||||
| Formula | Fixed cost/Selling Price-Variable cost | |||||||||
| = | $6875/$50-($50*45%) | |||||||||
| = | $6875/$27.5 | |||||||||
| = | 250 Units | (i.e Option A) | ||||||||
| Q8: | Units must be sold in order to obtain a before-tax profit of $12,000 | |||||||||
| Let number of units sold = | x | |||||||||
| So, | x*($50-$27.5)-$6875 | = | $12,000 | |||||||
| $22.5x | = | $18,875 | ||||||||
| x | = | $18875/$22.5 | ||||||||
| x | = | 839 units (i.e. Option D) | ||||||||
| Q9: | Break-even point in sales dollars for Biscuit Company | |||||||||
| Formula | = | Break even Point in units calculated in Q 7 above*Selling Price | ||||||||
| = | 250 units*$50 | |||||||||
| = | $12500(i.e Option D) | |||||||||
Add Answer to:
Biscuit Company sells its product for $50. In addition, it has a
variable cost ratio of...
A Company sells its product for £190. In addition, it has a variable cost of 65...
A Company sells its product for £190. In addition, it has a variable cost of 65 percent of sales and total fixed costs of £180,000. How many units must be sold in order to obtain a before-tax profit of £120,000?
A company sells a product which has a unit sales price of $5, unit variable cost...
A company sells a product which has a unit sales price of $5, unit variable cost of $3 and costs of $240,000. The number of units the company must sell to break even is ble cost of $3 and total fixed 31. This ONE Henderson Co. has fixed costs of $36,000 and a contribution margin ratio of 24%. If expected sales are $200,000, what is the margin of safety as a percent of sales?!
Cooper Company sells a product at $50 per unit that has unit variable costs of $20....
Cooper Company sells a product at $50 per unit that has unit variable costs of $20. The company's break-even sales point in sales dollars is $150,000. How much is the fixed costs now? (Hint: The fixed costs is same as the total contribution margin when there is break-even.) Select one: O a. $200,000 O b. $100,000 O c. $90,000 O d. $120,000 Zeus, Inc. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs...
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...
Question 15: Cooper Company sells a product at $50 per unit that has unit variable costs...
Question 15: Cooper Company sells a product at $50 per unit that has unit variable costs of $20. The company's break-even sales point in sales dollars is $150,000. How much is the fixed costs now? (Hint: The fixed costs is same as the total contribution margin when there is break-even.) Select one: O a. $120,000 O b. $100,000 O c. $200,000 O d. $90,000 ge Next page
Fowler Company produces a product that sells for $200 per unit and has a variable cost...
Fowler Company produces a product that sells for $200 per unit and has a variable cost of $125 per unit. Fowler incurs annual fixed costs of $450,000 Required a. Determine the sales volume in units and dollars required to break even. (Do not round intermediate calculations.) b. Calculate the break-even point assuming fixed costs increase to $600,000. (Do not round intermediate calculations.) Answer is not complete. 6,000 $ 1,200,000 Sales volume in units Sales in dollars Break-even units Break-even sales...
Rooney Company produces a product that sells for $40 per unit and has a variable cost...
Rooney Company produces a product that sells for $40 per unit and has a variable cost of $21 per unit. Rooney incurs annual fixed costs of $127.300 Required o. Determine the sales volume in units and dollars required to break even. (Do not round intermediate calculations.) b. Calculate the break-even point assuming fixed costs increase to $161,500. (Do not round intermediate calculations.) 40 a Sales volume in units Sales in dollars b Break-even units Break even sales
Narchie sells a single product for $50. Variable costs are 60% of the selling price, and...
Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Current sales total 16,000 units. Narchie: ______ A) will break-even by selling 20,000 units. B) will break-even by selling 13,333 units. C) will break-even by selling 8,000 units. D) will break-even by selling 1,000,000 units. E) cannot break-even because it loses money on every unit sold.
Radison Enterprises sells a product for $98 per unit. The variable cost is $50 per unit,...
Radison Enterprises sells a product for $98 per unit. The variable cost is $50 per unit, while fixed costs are $387,072. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $106 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $106 per unit units
A company sells a product which has a unit sales price of $5, unit variable cost of $3 and costs of $240,000. The number of units the company must sell to break even is ble cost of $3 and total fixed 31. This ONE Henderson Co. has fixed costs of $36,000 and a contribution margin ratio of 24%. If expected sales are $200,000, what is the margin of safety as a percent of sales?!
Cooper Company sells a product at $50 per unit that has unit variable costs of $20. The company's break-even sales point in sales dollars is $150,000. How much is the fixed costs now? (Hint: The fixed costs is same as the total contribution margin when there is break-even.) Select one: O a. $200,000 O b. $100,000 O c. $90,000 O d. $120,000 Zeus, Inc. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs...
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 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...
Question 15: Cooper Company sells a product at $50 per unit that has unit variable costs of $20. The company's break-even sales point in sales dollars is $150,000. How much is the fixed costs now? (Hint: The fixed costs is same as the total contribution margin when there is break-even.) Select one: O a. $120,000 O b. $100,000 O c. $200,000 O d. $90,000 ge Next page
Fowler Company produces a product that sells for $200 per unit and has a variable cost of $125 per unit. Fowler incurs annual fixed costs of $450,000 Required a. Determine the sales volume in units and dollars required to break even. (Do not round intermediate calculations.) b. Calculate the break-even point assuming fixed costs increase to $600,000. (Do not round intermediate calculations.) Answer is not complete. 6,000 $ 1,200,000 Sales volume in units Sales in dollars Break-even units Break-even sales...
Rooney Company produces a product that sells for $40 per unit and has a variable cost of $21 per unit. Rooney incurs annual fixed costs of $127.300 Required o. Determine the sales volume in units and dollars required to break even. (Do not round intermediate calculations.) b. Calculate the break-even point assuming fixed costs increase to $161,500. (Do not round intermediate calculations.) 40 a Sales volume in units Sales in dollars b Break-even units Break even sales
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