In order to at least break-even, a price must cover total costs (COGS + fixed costs)....
In order to at least break-even, a price must cover total costs (COGS + fixed costs). Calculate total cost and per unit total cost for XYZ eyeglass manufacturer with the following information (show your calculations):
· Total units produced and sold: 100,000
· Total annual management compensation: $600,000
· Annual utilities cost: $120,000
· Annual office rent: $240,000
· Annual advertising cost: $400,000
· Annual shared admin department costs: $600,000
· 20,000 plastic frames purchased in March for $9 each
· 40,000 plastic frames purchased in August for $11 each
· 100,000 units of screws purchased in January for $1 per unit
Homework Answers
Total fixed annual cost = 600000+120000+240000+400000+600000
= $ 1,960,000
Total COGS = 20000*9+40000*11+100000*1= $ 720,000
Total fixed annual cost + COGS = 1960000+720000
= $ 2,680,000
Break-even price = (Total fixed annual cost + COGS)/Number of units sold
= 2680000/100000
= $ 26.80
Add Answer to:
In order to at least break-even, a price must cover total costs
(COGS + fixed costs)....
1) At the break even point of 400 units, variable cost were $400 and fixed costs...
1) At the break even point of 400 units, variable cost were $400 and fixed costs were $200. how much will the 401st unit sold contribute to operating profit before income taxes? 2) Break even would not change if : a) sales price increases, b) fixed cost decrease, c) sales volume decrease, d) variable cost per unit increase 3) what is break even point in dollars? sales price: $100, variable cost per unit: $40, total fixed cost :$ 120,000 4)...
18. What is the profit at 100,000 units above break even? 19. What is the margin...
18. What is the profit at 100,000 units above break even?
19. What is the margin of safety at 1000 units above break
even?
20. What is the sales volume required to give $100,000 profit
before tax?
21. What is the sales volume required to give $180,000 after
tax, assuming a tax rate of 40%?
Child's Play Company makes a plastic rattle for toddlers. The rattle is generally marketed through exclusive retailers located in upscale shopping malls. The company used...
Total fixed costs for Taylor Incorporated are $240,000. Total costs, including both fixed and variable, are...
Total fixed costs for Taylor Incorporated are $240,000. Total costs, including both fixed and variable, are $900,000 ir 154,000 units are produced. The variable cost per unit is O A. $5.84/unit B. $4.29/unit. OC. $1.56/unit OD. $7.40/unit Click to select your answer. of * 11/8/2019
2. Data: Selling price = $50, variable cost per unit = $30, total fixed costs =...
2. Data: Selling price = $50, variable cost per unit = $30, total fixed costs = $400,000, and target profit = $100,000. a. Calculate the breakeven point in units using the equation method. b. Calculate the breakeven point in units using the formula method. c. Calculate the sales in units needed to earn the target profit. d. Calculate the total sales dollars needed to earn the target profit. Show all calculations,
Break-Even Analysis Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to...
Break-Even Analysis Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to cover costs or to make revenue equal costs. It is helpful in setting prices, estimating profit or loss potentials, and determining the discretionary costs that should be incurred. The general formula for calculating break-even units is Break-Even Units = Total Fixed Costs / ( Unit Selling Price − Unit Variable Cost ) 1. Use the formula to calculate how many cups of coffee an...
Hough Company manufactures and sells a single product. A partially completed schedule of the company's total...
Hough Company manufactures and sells a single product. A partially completed schedule of the company's total and per unit costs over a relevant range of 80,000 to 120,000 units produced and sold each year is given below: Units produced and sold 80,000 100,000 120,000 Total costs: Variable costs $240,000 ? ? Fixed costs 320,000 ? ? Total costs $560,000 ? 2 Cost per unit: Variable cost ? ? ? Fixed cost 2 2 ? Total cost per unit 2 2...
Total costs for Locke & Company at 130,000 units are $319,000, while total fixed costs are...
Total costs for Locke & Company at 130,000 units are $319,000, while total fixed costs are $195,000. The total variable costs at a level of 280,000 units would be (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.) O A. $420,000 OB. $148,107 O c. $266,000 OD. $687,077 Total fixed costs for Purple Figs Company are $92,000. Total costs, both fixed and variable are $180,000 if 120,000 units are produced. The fixed cost per...
2 2 41 5 | Break-even analysis attempts to determine the volume of sales necessary for...
2 2 41 5 | Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to cover costs, or to make revenue equal costs. It is helpful in setting prices, estimating profit or loss potentials, and determining the discretionary costs that should be incurred. The general formula for calculating break-even units is: Break-even = (Total Fixed Costs) / (Unit Selling Price - Unit Variable Cost] In StratSim; total fixed costs can be broken into discretionary marketing expenditures,...
Sales Mix and Break-Even Analysis Hughes Company has fixed costs of $3,565,000. The unit selling price,...
Sales Mix and Break-Even Analysis Hughes Company has fixed costs of $3,565,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit Model 94 $1,600 $960 $640 Model B1 1,000 800 200 The sales mix for products Model 94 and Model 81 is 25% and 75%, respectively. Determine the break even point in units of Model 94 and Model 81...
1.Hudson CO. predicts fixed costs of $400,000 for 2019. It’s one product sells for $170 per...
1.Hudson CO. predicts fixed costs of $400,000 for 2019. It’s one product sells for $170 per unit and it incurs variable costs of $150 per unit. The company predicts annual total sales of 25,000 units. Compute the contribution margin per unit Compute the break-even point in units using formula method Prepare a contribution margin income statement at the break-even point Using the information below apply the high-low method to determine the total fixed costs plus variable costs per unit. Highest...
18. What is the profit at 100,000 units above break even?
19. What is the margin of safety at 1000 units above break
even?
20. What is the sales volume required to give $100,000 profit
before tax?
21. What is the sales volume required to give $180,000 after
tax, assuming a tax rate of 40%?
Child's Play Company makes a plastic rattle for toddlers. The rattle is generally marketed through exclusive retailers located in upscale shopping malls. The company used...
Total fixed costs for Taylor Incorporated are $240,000. Total costs, including both fixed and variable, are $900,000 ir 154,000 units are produced. The variable cost per unit is O A. $5.84/unit B. $4.29/unit. OC. $1.56/unit OD. $7.40/unit Click to select your answer. of * 11/8/2019
2. Data: Selling price = $50, variable cost per unit = $30, total fixed costs = $400,000, and target profit = $100,000. a. Calculate the breakeven point in units using the equation method. b. Calculate the breakeven point in units using the formula method. c. Calculate the sales in units needed to earn the target profit. d. Calculate the total sales dollars needed to earn the target profit. Show all calculations,
Hough Company manufactures and sells a single product. A partially completed schedule of the company's total and per unit costs over a relevant range of 80,000 to 120,000 units produced and sold each year is given below: Units produced and sold 80,000 100,000 120,000 Total costs: Variable costs $240,000 ? ? Fixed costs 320,000 ? ? Total costs $560,000 ? 2 Cost per unit: Variable cost ? ? ? Fixed cost 2 2 ? Total cost per unit 2 2...
Total costs for Locke & Company at 130,000 units are $319,000, while total fixed costs are $195,000. The total variable costs at a level of 280,000 units would be (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.) O A. $420,000 OB. $148,107 O c. $266,000 OD. $687,077 Total fixed costs for Purple Figs Company are $92,000. Total costs, both fixed and variable are $180,000 if 120,000 units are produced. The fixed cost per...
2 2 41 5 | Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to cover costs, or to make revenue equal costs. It is helpful in setting prices, estimating profit or loss potentials, and determining the discretionary costs that should be incurred. The general formula for calculating break-even units is: Break-even = (Total Fixed Costs) / (Unit Selling Price - Unit Variable Cost] In StratSim; total fixed costs can be broken into discretionary marketing expenditures,...
Sales Mix and Break-Even Analysis Hughes Company has fixed costs of $3,565,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit Model 94 $1,600 $960 $640 Model B1 1,000 800 200 The sales mix for products Model 94 and Model 81 is 25% and 75%, respectively. Determine the break even point in units of Model 94 and Model 81...
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