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

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related 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....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT