Question

In: Finance

The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez’s autograph stamped on them. Each bat sells...

The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez’s autograph stamped on them. Each bat sells for $23 and has a variable cost of $13. There are $25,000 in fixed costs involved in the production process.

a. Compute the break-even point in units.

b. Find the sales (in units) needed to earn a profit of $20,200.

Solutions

Expert Solution

a. Break-even point in units = Fixed costs / (Selling price - Variable cost)

Break-even point in units = $25,000 / ($23 - $13)

Break-even point in units = 2,500 units

b. Sales (in units) needed to earn a profit = (Fixed costs + Desired profit) / (Selling price - Variable cost)

Sales (in units) needed to earn a profit = ($25,000 + $20,200) / ($23 - $13)

Sales (in units) needed to earn a profit = 4,520 units

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Comprehensive Problem Major League Bat Company Major League Bat Company manufactures baseball bats. In addition to...
Comprehensive Problem Major League Bat Company Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as direct materials in production and as indirect materials. Its factory payroll costs include direct labor for production and indirect labor. All materials are added at the beginning of the process, and conversion costs are applied uniformly throughout the production process. Required: You are to...
Comprehensive Problem Major League Bat Company Major League Bat Company manufactures baseball bats. In addition to...
Comprehensive Problem Major League Bat Company Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as direct materials in production and as indirect materials. Its factory payroll costs include direct labor for production and indirect labor. All materials are added at the beginning of the process, and conversion costs are applied uniformly throughout the production process. Required: You are to...
Homerun Corporation produces baseball bats for kids that it sells for $38 each. At? capacity, the...
Homerun Corporation produces baseball bats for kids that it sells for $38 each. At? capacity, the company can produce 36,000 bats a year. The costs of producing and selling 36,000 bats are as? follows: LOADING... ?(Click to view the? costs.) Cost per Bat Total Costs Direct materials $12 $432,000 Direct manufacturing labor 2 72,000 Variable manufacturing overhead 2 72,000 Fixed manufacturing overhead 7 252,000 Variable selling expenses 4 144,000 Fixed selling expenses 5 180,000 Total costs $32 $1,152,000 Read the...
Double Corporation produces baseball bats for kids that it sells for $33 each. At​ capacity, the...
Double Corporation produces baseball bats for kids that it sells for $33 each. At​ capacity, the company can produce 50,000 bats a year. The costs of producing and selling 50,000 bats are as​ follows: Cost per Bat Total Costs Direct materials $11 $550,000 Variable direct manufacturing labor 4 200,000 Variable manufacturing overhead 2 100,000 Fixed manufacturing overhead 3 150,000 Variable selling expenses 3 150,000 Fixed selling expenses 4 200,000 Total costs $27 $1,350,000 1. Suppose Double is currently producing and...
Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the...
Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as direct materials in production and as indirect materials. Its factory payroll costs include direct labor for production and indirect labor. All materials are added at the beginning of the process, and conversion costs are applied uniformly throughout the production process. Required: You are to maintain records and produce measures of...
Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the...
Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as direct materials in production and as indirect materials. Its factory payroll costs include direct labor for production and indirect labor. All materials are added at the beginning of the process, and conversion costs are applied uniformly throughout the production process. Required: You are to maintain records and produce measures of...
Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the...
Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as direct materials in production and as indirect materials. Its factory payroll costs include direct labor for production and indirect labor. All materials are added at the beginning of the process, and conversion costs are applied uniformly throughout the production process. Required: You are to maintain records and produce measures of...
Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the...
Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as direct materials in production and as indirect materials. Its factory payroll costs include direct labor for production and indirect labor. All materials are added at the beginning of the process, and conversion costs are applied uniformly throughout the production process. Required: You are to maintain records and produce measures of...
Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the...
Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as direct materials in production and as indirect materials. Its factory payroll costs include direct labor for production and indirect labor. All materials are added at the beginning of the process, and conversion costs are applied uniformly throughout the production process. Required: You are to maintain records and produce measures of...
Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the...
Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as direct materials in production and as indirect materials. Its factory payroll costs include direct labor for production and indirect labor. All materials are added at the beginning of the process, and conversion costs are applied uniformly throughout the production process. Required: You are to maintain records and produce measures of...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT