Question
In: Accounting
ABC Company produces and sells four products. Information about these products for 2019, the most recent...
ABC Company produces and sells four products. Information about
these products
for 2019, the most recent year, appears below:
Product A Product B
Product C Product D
selling price per unit 19.00 16.00 15.00 12.00
variable costs per unit 5.00 13.00 5.00 6.00
number of units sold 39,000 32,000 15,000 28,000
ABC Company had total fixed costs of $648,000 in 2019.
Calculate the margin of safety reported by ABC Company for 2019.
Calculate the number of units of Product D that
needed to be sold in 2019 in order
for ABC Company to earn a profit of $144,000.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
ABC Company produces and sells four products. Information about these products for 2019, the most recent...
ABC Company produces and sells four products. Information about
these products for
2019, the most recent year, appears below:
Product
A Product B Product C Product D
selling price per unit 19.00 17.00 15.00 12.00
variable costs per unit 5.00 13.00 5.00 6.00
number of units sold 37,000 32,000 14,000 29,000
ABC Company had total fixed costs of $648,000 in 2019.
Calculate the number of units of Product D that
needed to be sold in 2019 in order for
ABC...
ZZ Company produces and sells four products. Information about these products for 2019, the most recent...
ZZ Company produces and sells four products. Information
about these products for 2019, the most recent year,
appears below:
Product A Product B
selling price per unit $18 $16
variable costs per unit $ 6 $ 5
number of units sold 22,000 36,000
Product C Product D
selling price per unit $17 $13
variable costs per unit $13 $ 7
number of units sold 15,000 20,000
ZZ Company reported total fixed costs of $540,000 in
2019.
Calculate the number of...
ABC Company sells three products. Income statements for the three products for the most recent year...
ABC Company sells three products. Income statements for the three products
for the most recent year appear below:
Product A Product B Product C
Sales revenue ................ $120,000 $180,000 $145,000
Costs:
Variable costs ........... 78,000 54,000 87,000
Advertising .............. 12,000 7,000 8,000
Rent ..................... 10,000 10,000 10,000
Supervisor's salary ...... 25,000 35,000 30,000
Property taxes ........... 10,000 6,000 2,000
Net income/loss ............... <15,000> 68,000 8,000
The rent is allocated to the three products equally and the property taxes
are allocated...
Betty DeRose, Inc. produces and sells three products. Information about these products for 2022, the most...
Betty DeRose, Inc. produces and sells three products. Information about
these products for 2022, the most recent year, appears below:
Product A Product B Product C
selling price per unit $33 $49 $24
variable costs per unit $14 $37 $11
number of units sold 22,000 18,000 25,000
Betty DeRose, Inc. reported total fixed costs of $195,636 in 2022.
Calculate the number of units of Product B that needed to be sold
in 2022 in order for Betty DeRose, Inc. to...
Lareem company produces two products. Information on the two products for the most recent year appears...
Lareem
company produces two products. Information on the
two
products for the most recent year appears below:
Product A Product B
selling price per bar $5.00 $3.00
variable costs per bar $2.25 $1.70
number
of units sold 50,000 units 42,000 units
Fixed
costs totaled $108,000.
ABC
Company is considering investing in an advertising
campaign that will double the sales volume of Product B.
ABC
wants to increase next year's profits by 30% over the
most
recent year's profits. Assume the...
ZZZ Company produces and sells three products. Information about these products for the month of May...
ZZZ Company produces and sells three products. Information
about these products for the month of May is given below:
Product A Product B
selling price per unit $16 $14
variable costs per unit $ 7 $ 6
number of units sold 20,000 25,000
Product C
selling price per unit $20
variable costs per unit $15
number of units sold 24,000
ZZZ Company reported total fixed costs of $166,000 in May.
In order to improve profitability, ZZZ Company made the
following...
Brancati Inc. produces and sells two products. Data concerning those products for the most recent month...
Brancati Inc. produces and sells two products. Data
concerning those products for the most recent month appear
below:
Product W07C
Product B29Z
Sales…………………………
$25,000
$27,000
Variable expenses………...
$7,000
$8,600
Fixed expenses for the entire company for the month were
$32,860.
Answer the following questions:
1. Determine the overall break-even point for the
company. Show your work!
2. If the sales mix shifts toward
Product W07C with no change in total sales, what will happen to the
break-even point for the...
Ingrum Corporation produces and sells two products. In the most recent month, Product R38T had sales...
Ingrum Corporation produces and sells two products. In the most
recent month, Product R38T had sales of $30,000 and variable
expenses of $8,240. Product X08S had sales of $51,000 and variable
expenses of $20,110. The fixed expenses of the entire company were
$35,230.
The break-even point for the entire company is closest to
Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales...
Flesch Corporation produces and sells two products. In the most
recent month, Product C90B had sales of $25,380 and variable
expenses of $8,883. Product Y45E had sales of $32,550 and variable
expenses of $17,902. The fixed expenses of the entire company were
$24,400. If the sales mix were to shift toward Product C90B with
total dollar sales remaining constant, the overall break-even point
for the entire company:
A.) would increase
b.) could increase or decrease
c.) would not change
d.)...
Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales...
Flesch Corporation produces and sells two products. In the most
recent month, Product C90B had sales of $28,160 and variable
expenses of $8,448. Product Y45E had sales of $36,000 and variable
expenses of $19,800. The fixed expenses of the entire company were
$23,500. If the sales mix were to shift toward Product C90B with
total dollar sales remaining constant, the overall break-even point
for the entire company:
Multiple Choice
would decrease.
would increase.
could increase or decrease.
would not change....
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