The following information relates to Wither Ltd £ Sales (250,000 units) 750,000 Manufacturing Costs: Variable 300,000...

The following information relates to Wither Ltd

	£
Sales (250,000 units)	750,000
Manufacturing Costs:
Variable	300,000
Fixed	80,000
Selling & Administrative Costs:
Variable	75,000
Fixed	40,000

What is the break even point in units for Wither Ltd?

Expert Solution

Sale	7,50,000
Less Variable cost
Manufacturing Costs	3,00,000
Selling & Administrative Costs	75,000

Contribution	3,75,000
Less Fixed cost
Manufacturing Costs	80,000
Selling & Administrative Costs	40,000

Operating profit	2,55,000


Contribution per unit	1.5	375000/250000

Break-even point in units = Total fixed expenses/Contribution margin per unit


Break even point in units =	80,000	(80000+40000)/1.5

Hi mate,

I would be grateful to you if you can provide a thumbs up and write one beautiful comment. It will improve my rating and let me continue my journey here.

In case of doubt, please comment. I will consider myself fortunate if I can help you.

All the best for your bright future.

Be safe from the corona. Wear a mask before going out and wash hands frequently especially before touching the face

ekkarill92 answered 2 years ago

The following information pertains to the Bees Burger Restaurant chain: Sales $600,000 Variable costs 300,000 Total...

The following information pertains to the Bees Burger Restaurant chain: Sales $600,000 Variable costs 300,000 Total contribution margin 300,000 Fixed costs 100,000 EBIT 200,000 Interest expense 50,000 Earnings before taxes 150,000 Taxes (30%) 45,000 Net income $105,000 1. If sales increase by 10%, what will be the new level of EPS if the firm has 100,000 shares outstanding? 2. What creates total or combined leverage in a firm’s capital structure?

Units sold 1,180 Price $ 10 Sales $ 11,800 Variable manufacturing costs 4,720 Fixed manufacturing costs...

Units sold 1,180 Price $ 10 Sales $ 11,800 Variable manufacturing costs 4,720 Fixed manufacturing costs 2,360 Variable selling costs 1,180 Fixed administrative costs 1,180 Required: Using the data provided, compute the margin of safety and margin of safety ratio. mos: mos ratio:

T2.1 TPL Ltd. The following information relates to TPL Ltd., a manufacturing company for the year...

T2.1 TPL Ltd. The following information relates to TPL Ltd., a manufacturing company for the year ended 31st December 2012. Raw Materials: € Stock at 1 January 2012 390,000 Purchases 1,520,000 Stock at 31 December 2012 410,000 Finished Goods: Stock at 1 January 2012 510,000 Purchases 90,000 Stock at 31 December 2012 570,000 Sales 4,000,000 Manufacturing wages 600,000 Indirect materials 253,000 Repairs and maintenance of plant &machinery 135,000 Depreciation: Factory 380,000 General offices 50,000 Warehouse 70,000 Power 100,000 Light and...

Which of the following costs are variable? Cost 10,000 Units 30,000 Units 1. $100,000 $300,000 2....

Which of the following costs are variable? Cost 10,000 Units 30,000 Units 1. $100,000 $300,000 2. 40,000 240,000 3. 90,000 90,000 4. 50,000 150,000 only 1 only 2 1 and 2 1 and 4

Given Sales in units 10,000 Variable manufacturing costs per unit 5 Variable administrative costs per unit...

Given Sales in units 10,000 Variable manufacturing costs per unit 5 Variable administrative costs per unit 2 Fixed manufacturing costs per unit 2 Fixed administrative costs per unit 1 Variable costs 75% of sales Selling price per unit? $2.22 $9.33 $17.50 $20 Given for XM Company the following data for January 20X1. Direct material purchased and used in production accounted for $ 50000 Units purchased 5000 The standard units 4200 Managers estimate price variance not to exceed +1% of the...

Sherpa Manufacturing has the following income statement for 6,000 units: Sales $600,000 Variable costs 360,000 Contribution...

Sherpa Manufacturing has the following income statement for 6,000 units: Sales $600,000 Variable costs 360,000 Contribution margin 240,000 Fixed costs 80,000 Net income $160,000 (a) At what sales volume (in sales dollars) does Sherpa break even? (b) At what sales volume (in units) does Sherpa break even? (c) Given the income statement above, compute the margin of safety. (d) What level of sales volume must be attained to reach net income of $200,000? (e) What level of sales volume must...

Problem 3 The following information is available for Hearst Company. Sales Price $60 Variable manufacturing costs...

Problem 3 The following information is available for Hearst Company. Sales Price $60 Variable manufacturing costs -34 Sales commission 10% of sales price -6 Fixed costs $180,000 Answer the following questions 1 What is the contribution margin? 2 What is the CM ratio? 3 What is the income if we sell 8,000 units? 4 What is the break-even point in units?, in dollars? 5 How many units must be sold to earn $40,000 6 The tax rate is 30%. How...

The following information is available for year 1 for Pepper Products: Sales revenue (250,000 units)...

The following information is available for year 1 for Pepper Products: Sales revenue (250,000 units) $ 5,750,000 Manufacturing costs Materials $ 338,000 Variable cash costs 287,000 Fixed cash costs 661,000 Depreciation (fixed) 2,016,000 Marketing and administrative costs Marketing (variable, cash) 852,000 Marketing depreciation 302,000 Administrative (fixed, cash) 1,027,000 Administrative depreciation 151,000 Total costs $ 5,634,000 Operating profits $ 116,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected...

The following information is available for year 1 for Pepper Products: Sales revenue (300,000 units) $...

The following information is available for year 1 for Pepper Products: Sales revenue (300,000 units) $ 8,100,000 Manufacturing costs Materials $ 478,000 Variable cash costs 406,000 Fixed cash costs 935,000 Depreciation (fixed) 2,851,000 Marketing and administrative costs Marketing (variable, cash) 1,205,000 Marketing depreciation 428,000 Administrative (fixed, cash) 1,456,000 Administrative depreciation 213,000 Total costs $ 7,972,000 Operating profits $ 128,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected to fall...

Using the income statement below compute the following items. Sales $1,250,000 25 Variable costs 750,000 15...

Using the income statement below compute the following items. Sales $1,250,000 25 Variable costs 750,000 15 Contribution margin 500,000 10 40% Fixed operating costs 200,000 Earnings before interest and taxes 300,000 Interest 125,000 Earnings before taxes 175,000 Taxes (30%) 52,500 Net income $122,500 Note: The company made and sold 50,000 units this year Required: Record the answers in the designated spots below. Round to the dollar, do not record the dollar sign, and no comma is needed between thousands and...

Question