QUESTION 12 Boomerang company sells a product at $100 per unit that has unit variable costs...

QUESTION 12

Boomerang company sells a product at $100 per unit that has unit variable costs of $30. The company's break-even sales point in sales dollars is $150,000. How much profit will the company make if it sells 4,000 units?

A.
$70,000

B.
$120,000

C.
$175,000

D.
$215,000

8.71 points

QUESTION 13

During its first year of operations, Buzz Lightyear Company paid $35,000 for direct materials and $70,000 in wages for production workers. Lease payments, utility costs, and depreciation on factory equipment totaled $25,000. General, selling, and administrative expenses were $30,000. The average cost to produce one unit was $3.00. How many units were produced during the period?

A.
38,455 units

B.
56,000 units

C.
40,000 units

D.
43,333 units

8.71 points

QUESTION 14

Bootfall Company currently produces and sells 4,000 units of a product that has a contribution margin of $5 per unit. The company sells the product for a sales price of $20 per unit. Fixed costs are $20,000. The company has recently invested in new technology and expects the variable cost per unit to fall to $12 per unit. The investment is expected to increase fixed costs by $15,000. After the new investment is made, how many units must be sold to break even?

A.
4,375 units

B.
7,000 units

C.
2,917 units

D.
4,000 units

Expert Solution

ekkarill92 answered 2 years ago

Valley Company sells two products. Product M sells for $12 and has variable costs per unit...

Valley Company sells two products. Product M sells for $12 and has variable costs per unit of $7. Product Q’s selling price and variable costs are $15 and $10, respectively. If fixed costs are $60,000 and Valley sells twice as many units of Product M as Product Q, what is the break-even point in units for Product M?

Adams Company sells a single product. The product sells for $100 per unit. The company’s variable...

Adams Company sells a single product. The product sells for $100 per unit. The company’s variable expenses are 80% of sales and its fixed expenses total $150,000 per year. a: What is the company’s contribution margin ratio? b: What is the company’s break-even point? (Give answer in dollars and in units.)

Our company sells a product for $150 per unit. Variable costs are $90 per unit and...

Our company sells a product for $150 per unit. Variable costs are $90 per unit and fixed costs are $18,000. The company expects to sell 800 units this year. How many units must we sell to break even? a) 300 b) 320 c) 360 d) 400 Our company has reviewed the utilities bills for our company. We have determined that the highest and lowest bills were $5,600 and $3,200 for the months of January and September. If we produced 1,200...

1. A company sells their product for $360 per unit and they have variable costs per...

1. A company sells their product for $360 per unit and they have variable costs per unit of $293. The fixed costs of the company are presently $3,000,000. If the company increases the fixed costs by 25% and increases the selling price per unit by 10%, with variable costs per unit remaining the same, the breakeven point in units will: a. decrease b. increase c. remain the same d. Not enough information given 2. From the...

Company sells its product for $11700 per unit. Variable costs per unit are: manufacturing, $5500; and...

Company sells its product for $11700 per unit. Variable costs per unit are: manufacturing, $5500; and selling and administrative, $135. Fixed costs are: $30000 manufacturing overhead, and $40000 selling and administrative. There was no beginning inventory at 1/1/18. Production was 20 units per year in 2018–2020. Sales were 20 units in 2018, 16 units in 2019, and 24 units in 2020. Income under variable costing for 2019 is $27040. $33040. $35200. $60080.

Quiz Company sells its product for $10 per unit. Variable costs are $6 per unit and...

Quiz Company sells its product for $10 per unit. Variable costs are $6 per unit and fixed costs are $15,000 per week. During the third week of July, Quiz Company sold 5,000 units. 1. Determine the number of units Quiz Company must sell to earn operating income of $8,000. 2. Determine the sales revenue (in dollars) Quiz Company must generate to break even. 3. Determine the sales revenue (in dollars) Quiz Company must generate to earn operating income of $8,000....

A manufacturer produces a product that sells for $10 per unit. Variable costs per unit are...

A manufacturer produces a product that sells for $10 per unit. Variable costs per unit are $6 and total fixed costs are $12,000. At this selling price, the company earns a profit equal to 10% of total dollar sales. By reducing its selling price to $9 per unit, the manufacturer can increase its unit sales volume by 25%. Assume that there are no taxes and that total fixed costs and variable costs per unit remain unchanged. If the selling price...

Flannigan Company manufactures and sells a single product that sells for $500 per unit; variable costs...

Flannigan Company manufactures and sells a single product that sells for $500 per unit; variable costs are $270. Annual fixed costs are $943,000. Current sales volume is $4,250,000. Compute the contribution margin per unit.

11 Green Company sells its product for $11100 per unit. Variable costs per unit are: manufacturing,...

11 Green Company sells its product for $11100 per unit. Variable costs per unit are: manufacturing, $5600; and selling and administrative, $125. Fixed costs are: $51000 manufacturing overhead, and $61000 selling and administrative. There was no beginning inventory at 1/1/18. Production was 34 units per year in 2018–2020. Sales were 34 units in 2018, 30 units in 2019, and 38 units in 2020. Income under absorption costing for 2020 is $79650. $85250. $86250. $92250.

Chandler Company sells its product for $104 per unit. Variable manufacturing costs per unit are $45,...

Chandler Company sells its product for $104 per unit. Variable manufacturing costs per unit are $45, and fixed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $15 per unit sold. Fixed administrative expenses total $104,000. Chandler had no beginning inventory in 2016. During 2016, the company produced 12,000 units and sold 9,000. Would net income for Chandler Company in 2016 be higher if calculated using variable costing or using absorption costing? Calculate...

Question