1. Calculate the break-even point for a new line of shirts. Selling price will be $48...
1. Calculate the break-even point for a new line of shirts. Selling price will be $48 per shirt. Labor costs will be $12 per shirt. Administrative costs allocated to the shirt line are estimated to be $80,000 annually and the sales and marketing expenses are $40,000 a year for the shirt line. Cost of materials will be $20 per shirt. What is the break-even quantity? The break-even quantity lies in the range:
- more than 8,000 shirts.
- *6,001 to 8,000 shirts.
- 3,500 to 6,000 shirts.
- fewer than 3,500 shirts.
Homework Answers
Break even quantity = Total fixed costs/contribution margin per unit
Total fixed costs = 80,000+40,000 = $120,000
Contribution Margin per unit = Selling price per unit - variable cost per unit
= 48-12-20
= $16 per unit
Hence, Break even quantity = 120,000/16
= 7,500 shirts
hence, the answer is
6,001 to 8,000 shirts.
Add Answer to:
1. Calculate the break-even point for a new line of shirts.
Selling price will be $48...
Bell Entertainment sells souvenir T-shirts at each rock concert that it sponsors. The shirts cost $7...
Bell Entertainment sells souvenir T-shirts at each rock concert that it sponsors. The shirts cost $7 each. Any excess shirts can be returned to the manufacturer for a full refund of the purchase price. The sales price is $16 per shirt. Required a. What are the total cost of shirts and cost per shirt if sales amount to 2,000, 2,500, 3,000, 3,500, or 4,000? b. Is the cost of T-shirts a fixed or a variable cost? Complete this question by...
PR 19-6A Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Blythe Industries...
PR 19-6A Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Blythe Industries Inc. expects to maintain the same inventories at the end of 2012 as at the beginning of the year. The total of all production costs for the year is therefore as- sumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during 2012. A summary...
In 2016, Manhoff Company had a break-even point of $341,000 based on a selling price of...
In 2016, Manhoff Company had a break-even point of $341,000 based on a selling price of $5 per unit and fixed costs of $171,000. In 2017, the selling price and the variable costs per unit did not change, but the break-even point increased to $437,000. Compute the variable costs per unit and the contribution margin ratio for 2016. AND Compute the increase in fixed costs for 2017.
Need help with the problems below PR 19-6A Contribution margin, break-even sales, cost-volume-profit chart, margin of...
Need help with the problems below
PR 19-6A Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Blythe Industries Inc. expects to maintain the same inventories at the end of 2012 as at the beginning of the year. The total of all production costs for the year is therefore as- sumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for...
In 2016, Manhoff Company had a break-even point of $309,000 based on a selling price of...
In 2016, Manhoff Company had a break-even point of $309,000 based on a selling price of $8 per unit and fixed costs of $172,000. In 2017, the selling price and the variable costs per unit did not change, but the break-even point increased to $442,000. Compute the variable costs per unit and the contribution margin ratio for 2016. (Round Variable cost per unit to 2 decimal places, e.g. 2.25 and Contribution margin ratio to 0 decimal places, e.g. 25.) Compute...
E18-12 In 2013, Manhoff Company had a break-even point of $350,000 based on a selling price...
E18-12 In 2013, Manhoff Company had a break-even point of $350,000 based on a selling price of $5 per unit and fixed costs of $112,000. In 2014, the selling price and the variable costs per unit did not change, but the break-even point increased to S420,000. Instructions (a) Compute the variable costs per unit and the contribution margin ratio for 2013. (b) Compute the increase in fixed costs for 2014
In 2016, Manhoff Company had a break-even point of $309,000 based on a selling price of...
In 2016, Manhoff Company had a break-even point of $309,000 based on a selling price of $5 per unit and fixed costs of $126,000. In 2017, the selling price and the variable costs per unit did not change, but the break-even point increased to $453,000. ✓ Your answer is correct. Compute the variable costs per unit and the contribution margin ratio for 2016. (Round Variable cost per unit to 2 decimal places, e.g. 2.25 and Contribution margin ratio to 0...
In 2016, Blue Spruce Company had a break-even point of $305,000 based on a selling price...
In 2016, Blue Spruce Company had a break-even point of $305,000 based on a selling price of $5 per unit and fixed costs of $122,000. In 2017, the selling price and the variable costs per unit did not change, but the break-even point increased to $437,000. Compute the variable costs per unit and the contri bution margin ratio for 2016. (Round Variable cost per unit to 2 decimal places, e.g. 2.25 and Contribution margin ratio to 0 decimal places, e.g....
In 2019, Oriole Company had a break-even point of $362,000 based on a selling price of...
In 2019, Oriole Company had a break-even point of $362,000 based on a selling price of $8 per unit and fixed costs of $108,600. In 2020, the selling price and the variable costs per unit did not change, but the break-even point increased to $467,000. . Your answer is incorrect. Compute the variable costs per unit and the contribution margin ratio for 2019. (Round Variable cost per unit to 2 decimal places, e.g. 2.25 and Contribution margin ratio to 0...
APPLY THE CONCEPTS: Calculate the break-even point in sales dollars for Lennon Products Further analysis of...
APPLY THE CONCEPTS: Calculate the break-even point in sales dollars for Lennon Products Further analysis of Lennon Products’s fixed costs revealed that the company actually faces annual fixed overhead costs of $9,800 and annual fixed selling and administrative costs of $4,200. Variable cost estimates are correct: direct materials cost, $4.00 per unit; direct labor costs, $5.00 per unit; and variable overhead costs, $1.00 per unit. At this time, the selling price of $20 will not change. Complete the following formulas...
Bell Entertainment sells souvenir T-shirts at each rock concert that it sponsors. The shirts cost $7 each. Any excess shirts can be returned to the manufacturer for a full refund of the purchase price. The sales price is $16 per shirt. Required a. What are the total cost of shirts and cost per shirt if sales amount to 2,000, 2,500, 3,000, 3,500, or 4,000? b. Is the cost of T-shirts a fixed or a variable cost? Complete this question by...
PR 19-6A Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Blythe Industries Inc. expects to maintain the same inventories at the end of 2012 as at the beginning of the year. The total of all production costs for the year is therefore as- sumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during 2012. A summary...
Need help with the problems below
PR 19-6A Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Blythe Industries Inc. expects to maintain the same inventories at the end of 2012 as at the beginning of the year. The total of all production costs for the year is therefore as- sumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for...
E18-12 In 2013, Manhoff Company had a break-even point of $350,000 based on a selling price of $5 per unit and fixed costs of $112,000. In 2014, the selling price and the variable costs per unit did not change, but the break-even point increased to S420,000. Instructions (a) Compute the variable costs per unit and the contribution margin ratio for 2013. (b) Compute the increase in fixed costs for 2014
In 2016, Manhoff Company had a break-even point of $309,000 based on a selling price of $5 per unit and fixed costs of $126,000. In 2017, the selling price and the variable costs per unit did not change, but the break-even point increased to $453,000. ✓ Your answer is correct. Compute the variable costs per unit and the contribution margin ratio for 2016. (Round Variable cost per unit to 2 decimal places, e.g. 2.25 and Contribution margin ratio to 0...
In 2016, Blue Spruce Company had a break-even point of $305,000 based on a selling price of $5 per unit and fixed costs of $122,000. In 2017, the selling price and the variable costs per unit did not change, but the break-even point increased to $437,000. Compute the variable costs per unit and the contri bution margin ratio for 2016. (Round Variable cost per unit to 2 decimal places, e.g. 2.25 and Contribution margin ratio to 0 decimal places, e.g....
In 2019, Oriole Company had a break-even point of $362,000 based on a selling price of $8 per unit and fixed costs of $108,600. In 2020, the selling price and the variable costs per unit did not change, but the break-even point increased to $467,000. . Your answer is incorrect. Compute the variable costs per unit and the contribution margin ratio for 2019. (Round Variable cost per unit to 2 decimal places, e.g. 2.25 and Contribution margin ratio to 0...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago