For the past year, Iris Company had fixed costs of $6,708,000, a unit variable cost of...

For the past year, Iris Company had fixed costs of $6,708,000, a unit variable cost of $444, and a unit selling price of $600. For the coming year, no changes are expected in revenues and costs, except that a new wage contract will increase variable costs by $6 per unit. Determine the break-even sales (units) for (a) the past year and (b) the coming year.

Expert Solution

a.	Particulars	Amount in units
	Selling Price per unit	$600
	Less: Variable Cost	($444)
	Contribution Margin Per Unit	$156	($600-$444)

	Fixed Cost	$6,708,000

	Break Even Sales in Units	Fixed Cost/ Contribution Margin per unit

	Break Even Sales in Units	$6708000/$156
	Break Even Sales in Units for past year	$43,000


b.	Increase in Variable Cost	$ 6 per unit
	Revised Variable Cost	$444+$6
	Revised Variable Cost	$450


	Particulars	Amount in units
	Selling Price per unit	$600
	Less: Variable Cost	($450)
	Contribution Margin Per Unit	$150	($600-$444)

	Fixed Cost	$6,708,000

	Break Even Sales in Units	Fixed Cost/ Contribution Margin per unit

	Break Even Sales in Units	$6708000/$150
	Break Even Sales in Units for current year	$44,720

ekkarill92 answered 1 year ago

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.

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, 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 $138, a unit variable cost of $69, and fixed costs of $800,400.

Break-Even Sales and Cost-Volume-Profit ChartFor 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).units2. Compute the sales (units) required to realize a target profit of $386,400.units3. 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$966,0004. Determine...

If the unit sales price is $12, the unit variable cost is $7.00 and fixed costs...

If the unit sales price is $12, the unit variable cost is $7.00 and fixed costs are $125,000; what is the, break-even quantity in # of units? ___________________________________ Please Show steps

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...

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

A company has $30 per unit in variable costs and $1,200,000 per year in fixed costs....

A company has $30 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is estimated to be 104,000 units annually. What is the price if a markup of 40% on total cost is used to determine the price?

Your company has fixed costs of $150,000 per year. The variable costs per unit in 2018...

Your company has fixed costs of $150,000 per year. The variable costs per unit in 2018 were $3 per unit, and 30,000 units were produced that year. Your company uses cost-based pricing and has a profit margin of $3 per unit. In 2019, production increased and your team had more experience—variable costs went down to $2 per unit because of your team’s higher skill and 65,000 units were produced that year. What is the change in selling price from 2018...

Question

For the past year, Iris Company had fixed costs of $6,708,000, a unit variable cost of...

Solutions

Expert Solution

Related Solutions

For the coming year, Swain Company estimates fixed costs at Php90,000, the unit variable cost at...

For the coming year, Paladin Inc. anticipates fixed costs of $120,000, a unit variable cost of...

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.

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.

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.

If the unit sales price is $12, the unit variable cost is $7.00 and fixed costs...

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...

A company has $30 per unit in variable costs and $1,200,000 per year in fixed costs....

Your company has fixed costs of $150,000 per year. The variable costs per unit in 2018...