Question
In: Accounting
For the coming year, Cleves Company anticipates a unit selling price of $138, a unit variable cost of $69, and fixed costs of $800,400.
Break-Even Sales and Cost-Volume-Profit Chart
For the coming year, Cleves Company anticipates a unit selling price of $138, a unit variable cost of $69, and fixed costs of $800,400.
Required:
1. Compute the anticipated break-even sales
(units).
units
2. Compute the sales (units) required to
realize a target profit of $386,400.
units
3. Construct a cost-volume-profit chart, assuming maximum sales of 23,200 units within the relevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even.
| $2,235,600 | |
| $2,001,000 | |
| $1,600,800 | |
| $1,200,600 | |
| $966,000 |
4. Determine the probable income (loss) from
operations if sales total 18,600 units. If required, use the minus
sign to indicate a loss.
Solutions
Expert Solution
1) brrak even units = FC/contribution oer unit
= 800400/(138-69)
= 11600 units
2) 17200
Contribution = fixed cost + profit = 800400 + 386400 = 1186800
Sales unit = 1186800/69 = 17200
3) PV RATION = 50%
At $2235600
| Sales | 2235600 |
| Variable cost | 1117800 |
| Contribution | 1117800 |
| Fixed cost | 800400 |
| Profit | 317400 |
At $2001000
| Sales | 2001000 |
| V.C. | 1000500 |
| Contribution | 1000500 |
| Fixed cost | 800400 |
| Profit | 200100 |
At $1600800
| Sales | 1600800 |
| V.C. | 800400 |
| CONTRIBUTION | 800400 |
| FIXED COST | 800400 |
| PROFIT | 0 |
AT $1200600
| Sales | 1200600 |
| V.C. | 600300 |
| CONTRIBUTION | 600300 |
| FIXED COST | 800400 |
| PROFIT | (200100) |
At $966000
| Sales | 966000 |
| V.C. | 483000 |
| CONTRIBUTION | 483000 |
| FIXED COST | 800400 |
| PROFIT | (317400) |
4) at sale of 18600 units
| Sales | 2566800 |
| V.C. | 1283400 |
| CONTRIBUTION | 1283400 |
| FIXED COST | 800400 |
| PROFIT | 483000 |
For any query please comment and
DO GIVE POSITIVE RATING
ekkarill92 answered 3 years agoRelated Solutions
For the coming year, Cleves Company anticipates a unit selling price of $94, a unit variable cost of $47, and fixed costs of $559,300.
Break-Even Sales and Cost-Volume-Profit ChartFor the coming year, Cleves Company anticipates a unit selling
price of $94, a unit variable cost of $47, and fixed costs of
$559,300.Required:A. Compute the anticipated break-even sales
(units).________________unitsB. Compute the sales (units) required to
realize a target profit of $291,400.________________unitsC. Construct a cost-volume-profit chart,
assuming maximum sales of 23,800 units within the relevant range.
From your chart, indicate whether each of the following sales
levels would produce a profit, a loss, or break-even.$1,569,800$1,400,600$1,118,600$836,600$667,400D. Determine...
For the coming year, Cleves Company anticipates a unit selling price of $84, a unit variable cost of $42, and fixed costs of $399,000.
Break-Even Sales and Cost-Volume-Profit ChartFor the coming year, Cleves Company anticipates a unit selling
price of $84, a unit variable cost of $42, and fixed costs of
$399,000.Required:1. Compute the anticipated break-even sales
(units).units2. Compute the sales (units) required to
realize a target profit of $159,600.units3. Construct a cost-volume-profit chart,
assuming maximum sales of 19,000 units within the relevant range.
From your chart, indicate whether each of the following sales
levels would produce a profit, a loss, or break-even.$1,117,200$999,600$798,000$596,400$478,8004. Determine...
For the coming year, Cleves Company anticipates a unit selling price of $78, a unit variable...
For the coming year, Cleves Company anticipates a unit selling
price of $78, a unit variable cost of $39, and fixed costs of
$257,400.
3. Construct a cost-volume-profit chart, assuming maximum sales
of 13,200 units within the relevant range. From your chart,
indicate whether each of the following sales levels would produce a
profit, a loss, or break-even.
$717,600
$647,400
$514,800
$390,000
$312,000
Determine the probable income (loss) from operations if sales
total 10,600 units. If required, use the minus...
Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Cleves Company anticipates a unit selling price...
Break-Even Sales and Cost-Volume-Profit Chart
For the coming year, Cleves Company anticipates a unit selling
price of $96, a unit variable cost of $48, and fixed costs of
$465,600.
Required:
1. Compute the anticipated break-even sales in
units.
units
2. Compute the sales (units) required to
realize income from operations of $182,400.
units
3. Construct a cost-volume-profit chart,
assuming maximum sales of 19,400 units within the relevant range.
From your chart, indicate whether each of the following sales
levels would...
Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Cleves Company anticipates a unit selling price...
Break-Even Sales and Cost-Volume-Profit Chart
For the coming year, Cleves Company anticipates a unit selling
price of $58, a unit variable cost of $29, and fixed costs of
$159,500.
Required:
1. Compute the anticipated break-even sales
(units).
units
2. Compute the sales (units) required to
realize a target profit of $84,100.
units
3. Construct a cost-volume-profit chart,
assuming maximum sales of 11,000 units within the relevant range.
From your chart, indicate whether each of the following sales
levels would produce...
Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Cleves Company anticipates a unit selling price...
Break-Even Sales and Cost-Volume-Profit
Chart
For the coming year, Cleves Company anticipates a unit selling
price of $134, a unit variable cost of $67, and fixed costs of
$395,300.
Required:
1. Compute the anticipated break-even sales in
units.
2. Compute the sales (units) required to
realize income from operations of $154,100.
3. Determine the probable income (loss) from
operations if sales total 9,400 units. If required, use the minus
sign to indicate a loss.
Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Cleves Company anticipates a unit selling price...
Break-Even Sales and Cost-Volume-Profit Chart
For the coming year, Cleves Company anticipates a unit selling
price of $128, a unit variable cost of $64, and fixed costs of
$697,600.
Required:
1. Compute the anticipated break-even sales
(units).
units
2. Compute the sales (units) required to
realize a target profit of $262,400.
units
3. Construct a cost-volume-profit chart,
assuming maximum sales of 21,800 units within the relevant range.
From your chart, indicate whether each of the following sales
levels would produce...
For the coming year, Paladin Inc. anticipates fixed costs of $120,000, a unit variable cost of...
For the coming year, Paladin Inc. anticipates fixed costs of
$120,000, a unit variable cost of $60, and a unit selling price of
$90. The maximum sales within the relevant range are
$900,000.
(a) Construct a cost-volume-profit chart.
(b) Estimate the break-even sales (dollars) by using the
cost-volume-profit chart constructed in part (a).
(c) What is the main advantage of presenting the cost-volume-profit
analysis in graphic form rather than equation form?
For the coming year, Swain Company estimates fixed costs at Php90,000, the unit variable cost at...
For
the coming year, Swain Company estimates fixed costs at Php90,000,
the unit variable cost at Php20, and the unit selling price at
Php80.
Determine
(a) the break-even point in units of sales
(b) the unit sales required to realize operating income of
Php150,000
(c) the probable operating income if sales total
Php500,000.
Steven Company has fixed costs of $239,080. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $239,080. The unit selling
price, variable cost per unit, and contribution margin per unit for
the company's two products are provided below.
Product
Selling Price
per unit
Variable Cost
per unit
Contribution Margin
per unit
X
$1,248
$468
$780
Y
473
253
220
The sales mix for products X and Y is 60% and 40% respectively.
Determine the break-even point in units of X and Y combined. Round
answer to nearest whole number.
units...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What 2 things happen to the melting point of a solid when an impurity is present?
- How Can Hominin Evolution be characterized as " mosaic evolution" Use examples of species from the...
- Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of...
- Mobile and wireless devices are being increasingly used in the Business Administration and Management Industry. write...
- What are the options that might be considered in relation to introducing flexible work practices? What...
- Question 2 : Aggregate Scores: Write a program that opens 2 files, quiz.txt, and hw.txt. The...
- Define the term symbiosis specifically as it applies in a biological context. Compare and contrast parasitism,...
ADVERTISEMENT