Question

In: Accounting

For the current year ending January 31, Harp Company expects fixed costs of $177,000 and a...

For the current year ending January 31, Harp Company expects fixed costs of $177,000 and a unit variable cost of $52.00. For the coming year, a new wage contract will increase the unit variable cost to $57.00. The selling price of $60.00 per unit is expected to remain the same. If required, round your answer to the nearest whole unit.

Required:

a. Compute the break-even sales (units) for the current year.

b. Compute the anticipated break-even sales (units) for the coming year, assuming the new wage contract is signed.-

Solutions

Expert Solution

Conclusion

Break-even point in unit (Current year) = 22,125 units

Anticipated Break-even point in unitsfor the coming year if new wage rate is signed= 59,000 units

Please do rate if my answer was found helpful. Thankyou !!!!!!!

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Brodrick Company expects to produce 20,400 units for the year ending December 31.
  Brodrick Company expects to produce 20,400 units for the year ending December 31. A flexible budget for 20,400 units of production reflects sales of $571,200; variable costs of $61,200; and fixed costs of $144,000. QS 23-3 Flexible budget LO P1 If the company instead expects to produce and sell 27,200 units for the year, calculate the expected level of income from operations.       ------Flexible Budget------ ------Flexible Budget at ------   Variable Amount per Unit Total Fixed Cost...
Kohlman Company began its operations on March 31 of the current year. Projected manufacturing costs for...
Kohlman Company began its operations on March 31 of the current year. Projected manufacturing costs for the first three months of business are $156,800, $195,200, and $217,600, respectively, for April, May, and June. Depreciation, insurance, and property taxes represent $28,800 of the estimated monthly manufacturing costs. Insurance was paid on March 31, and property taxes will be paid in November. Three-fourths of the remainder of the manufacturing costs are expected to be paid in the month in which they are...
Homespun Company manufactures pillows. For 2020​, the company expects fixed overhead costs of $120,000. Homespun uses​...
Homespun Company manufactures pillows. For 2020​, the company expects fixed overhead costs of $120,000. Homespun uses​ machine-hours to allocate fixed overhead costs and anticipates 6,000 hours during the year to manufacture 24,000 pillows. During 2020​, Homespun manufactured 23,000 pillows and spent $116,000 on fixed overhead costs. Calculate the​ following: a. The fixed overhead rate for 2020 b. The fixed overhead spending variance for 2020 c. The​ production-volume variance for
Conok Company has a fiscal year ending on Dec 31 each year. The company purchased (on...
Conok Company has a fiscal year ending on Dec 31 each year. The company purchased (on April 1, 2015) equipment with a total cost of $500,000, estimated useful life of 10 years, and estimated salvage value of $70,000. On Jan 1, 2017, the company automated the equipment at a cost of $200,000 to facilitate 24 hours operations. This doubled production of the asset but the useful life was decreased by 4 years. Prepare a depreciation table to calculate the depreciation...
An audit of the books of Grinch company was conducted for the year ending December 31,...
An audit of the books of Grinch company was conducted for the year ending December 31, 2018. In examining the books, the auditor found that certain items had been overlooked or incorrectly recorded. These items are: The company purchased a copyright in early 2016 for $60,000. The bookkeeper has not amortized the copyright. The useful life at purchase was 10 years. During 2018, the company sold fully depreciated equipment that originally cost $25,000 (no salvage value). The company incorrectly recorded...
The following is selected financial information for Qualmart, Inc. for its year ending January 31, 2021:...
The following is selected financial information for Qualmart, Inc. for its year ending January 31, 2021: Retained earnings, January 31, 2020 …….. $153,790 Stock issuance ……………………………… 1,235 Contributed capital, January 31, 2020 … 9,470 Net income ……………………………………… 32,560 Other stockholders’ equity changes…… (592) Dividends …………………………………………. 14,930 Other stockholders’ equity, January 31, 2020 2,463 Prepare a statement of stockholders' equity for 2021 for Qualmart. Qualmart, Inc. Statement of Stockholders' Equity For Year Ended January 31, 2021 Contributed Capital Retained Earnings Other...
Carla Corporation had a net income for the current year ending December 31, 2021 of $1,204,500....
Carla Corporation had a net income for the current year ending December 31, 2021 of $1,204,500. Throughout 2021 the following items were outstanding: ● 413,000 common shares ● 18,500 Class A $3 cumulative preferred shares that were convertible to common shares at a rate of 1:1 ● 49,500 Class B $4 non-cumulative preferred shares that were convertible at a rate of one common share for every two preferred shares. ● $551,000, 8% bonds that were convertible to 14,500 common shares...
Culver Corporation had a net income for the current year ending December 31, 2018 of $1,150,000....
Culver Corporation had a net income for the current year ending December 31, 2018 of $1,150,000. Throughout 2018 the following items were outstanding: ? 440,000 common shares ? 21,000 Class A $3 cumulative preferred shares that were convertible to common shares at a rate of 1:1 ? 49,000 Class B $4 non-cumulative preferred shares that were convertible at a rate of two preferred shares to one common share. ? $470,000, 8% bonds that were convertible to 16,000 common shares ?...
The Haverly Company expects to finish the current year with the following financial results, and is...
The Haverly Company expects to finish the current year with the following financial results, and is developing its annual plan for next year. Haverly Company Income Statement This Year ($000) $ % Revenue $74920 100.0 COGS 26984 36 Gross Margin $47936 64 Expenses:     Marketing $11605 15.5     Engineering 9314 12.4     Fin & Admin 8106 10.8     Total Exp. $29025 38.7 EBIT $18911 25.2 Interest 2255 3 EBT $16656 22.2 Inc Tax 6996 9.3 Net Income $  9660 12.9 Haverly Company Balance Sheet This...
The Haverly Company expects to finish the current year with the following financial results, and is...
The Haverly Company expects to finish the current year with the following financial results, and is developing its annual plan for next year. Haverly Company Income Statement This Year ($000) $ % Revenue $83640 100.0 COGS 35990 43 Gross Margin $47650 57 Expenses:     Marketing $18169 21.7     Engineering 3653 4.4     Fin & Admin 3735 4.5     Total Exp. $25557 30.6 EBIT $22093 26.4 Interest 3277 3.9 EBT $18816 22.5 Inc Tax 7903 9.4 Net Income $10913 13 Haverly Company Balance Sheet This...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT