HomeworkLib
Question

Break even point in units = Fixed cost / Contribution Margin per unit Target Profit =...

Break even point in units = Fixed cost / Contribution Margin per unit Target Profit = (Fixed Cost + Target Profit) / Contribution Margin Per Unit

Break even point in dollars = Fixed cost / Contribution Margin % After tax target profit = (Fixed Cost) + (Target Profit) / (1 - Tax Rate) / Contribution Margin Per Unit

Break even on a cash basis = (Fixed cost - Non cash items) / Contribution margin per unit

Variable cost per unit $450

Selling price per unit $600

Total fixed costs $1800000

Tax Rate .50

Non cash expenses $300000

1)Solve the break-even point in units (show your work)

2)Solve the break-even volume in dollars (show your work)

3) Solve the target sales volume in units assuming a targeted net income before taxes of $225000 (show your work)

4) Solve the target sales volume in dollars assuming a targeted net income after taxes of $300000 (show your work)

5) Solve break even on a cash bases

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
Break even point in units = Fixed cost / Contribution Margin per unit Target Profit =...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

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

  • EXERCISES: Set A (continued) 30. Break-Even Point and Target Profit Measured in Units (Multiple Products a....

    EXERCISES: Set A (continued) 30. Break-Even Point and Target Profit Measured in Units (Multiple Products a. Start by calculating the contribution margin for each product Sweater contribution margin- Jacket contribution margin- per unit per unit Then, calculate the weighted average contribution margin per unit: Weighted average contribution margin per unit = ) + ( b. The break-even point in units is calculated as: c. Break-even point in units for each product is: Sweater Jacket Total units (= units (= units...

  • E6-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-Even Point, Target Profit [LO 6-1,...

    E6-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-Even Point, Target Profit [LO 6-1, 6-2] Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $590 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 760 canoes. Prepare a contribution margin income statement for the company. 4. Calculate Sandy...

  • Target Profit Trailblazer Company sells a product for $210 per unit. The variable cost is $90 per unit, and flxed c...

    Target Profit Trailblazer Company sells a product for $210 per unit. The variable cost is $90 per unit, and flxed costs are $396,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $138,600. 396,000 Xunits a. Break-even point in sales units b. Break-even point in sales units if the company desires a target profit of 120 X units $138,600 Feedback YCheck My Work a. Unit...

  • The contribution margin $25 per unit and contribution margin at break-even point is $200,000. To obtain...

    The contribution margin $25 per unit and contribution margin at break-even point is $200,000. To obtain a target net operating income of $60,000, sales in units would have to be? When the contribution margin ratio is 25% and contribution margin at break-even point is $200,000. What is total sales revenue at a target net operating income of $60,000?  

  • Target Profit Ramirez Inc. sells a product for $80 per unit. The variable cost is $60...

    Target Profit Ramirez Inc. sells a product for $80 per unit. The variable cost is $60 per unit, and fixed costs are $2,000,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $250,000. a. Break-even point in sales units 100,000 units b. Break-even point in sales units if the company desires a target profit of $250,000 22,500 units Feedback a. Unit sales price minus unit...

  • Break-Even Point and Target Profit Measured in Units (Single Product). Nellie Company has monthly fixed costs...

    Break-Even Point and Target Profit Measured in Units (Single Product). Nellie Company has monthly fixed costs totaling S100,000 and variable costs of $20 per unit. Each unit of product is sold for $25. Required: Calculate the contribution margin per unit Find the break-even point in units. How many units must be sold to earn a monthly profit of $40,000?

  • P18-2A Prepare a CVP income statement, compute break-even point, contribution margin ratio, margin of safety ratio...

    P18-2A Prepare a CVP income statement, compute break-even point, contribution margin ratio, margin of safety ratio    and sales for target net income Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales $1,800,000 Selling expenses - variable Direct materials 430,000 Selling expenses - fixed Direct labor 360,000 Administrative...

  • Problem 11-28 Determining the break-even point and preparing a contribution margin income statement LO 11-5 Ritchie...

    Problem 11-28 Determining the break-even point and preparing a contribution margin income statement LO 11-5 Ritchie Manufacturing Company makes a product that it sells for $200 per unit. The company incurs variable manufacturing costs of $101 per unit. Variable selling expenses are $19 per unit, annual fixed manufacturing costs are $464,000, and fixed selling and administrative costs are $256,000 per year. Required Determine the break-even point in units and dollars using each of the following approaches: Use the equation method....

  • EXERCISES: Set A (continued) 28. Break-Even Point and Target Profit Mensured in Sales Dollars (Single Product)...

    EXERCISES: Set A (continued) 28. Break-Even Point and Target Profit Mensured in Sales Dollars (Single Product) a. The contribution margin ratio is calculated as b. The break-even point in sales dollars is calculated as: c. The target profit point in sales dollars is calculated as: 29. Margin of Safety (Single Product) a. The margin of safety in units: b. The margin of safety in sales dollars: Questio de Inc. How many units must be sold to earn a monthly profit...

  • Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal....

    Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal. However, the goal of most companies is to make a profit. When a company decides that it wants to earn more than the break-even point of income, it must define the amount it thinks it will realistically make. By modifying the break-even equation, the sales required to earn a target or desired amount of profit may be computed. Complete the following: If a company...

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