Question

In: Accounting

The fixed cost of a company is $45,000 p.a. Variable Overheads are $15. per unit. Selling...

The fixed cost of a company is $45,000 p.a. Variable Overheads are $15. per unit. Selling price is $25 per unit. Present sales are 20,000 units a year. Calculate the break-even point in sales and units.

Calculate the Break-even point for sales from the following data:

Sales ……………………………………………………………………………….. $150,000.00

Fixed Overheads …………………………………………………………….. $20,000.00

Variable Cost (Prime Cost + Variable Overheads) …………… $96,000.00

Calculate the break-even point sales and units from the following particulars:

Budgeted output100,000 units

Fixed Expenses$65,000.

Variable Cot Unit$20.00

Selling Cost per unit$30.00

From the following information calculate the break-even point:

Fixed overheads remain constant at $12,000

Variable overheads will rise steadily from zero to $12,000

Selling price is $1200 per ton

The tonnage produced and sold is 30 tons

Also calculate the effect of the following changes on the break-even point in each case:

If the selling price is increased by 20%

If the variable cost is decreased by 20

1.) Fixed overheads remain constant at $6,000

2.) Variable overheads will rise steadily from zero to $. 6,000

3.) Selling price is $600 per ton

4.) The tonnage produced and sold is 30 tons

Calculate the Break-even point considering the following points:

Effect of 20% increase in the selling price

Effect of 10% increase in fixed overheads

Effects of 20% decrease in variable cost

Effect of 10% increase in sales volume

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

1. A company has fixed cost of $45,000, variable cost per unit of $11, and sells...
1. A company has fixed cost of $45,000, variable cost per unit of $11, and sells its product at $18 each. a) What quantity must the firm sell in order to break-even? Explain how you reached this conclusion. b) What is the firm's total revenue at the break-even level of output? Show your calculation. c) What is the firm's total variable cost at the break-even level of output? d) What quantity must the firm sell in order to make a...
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 $780 Y 473 253 220 The sales mix for products X and Y is 60% and 40% respectively. Determine the break-even point in units of X and Y combined. Round answer to nearest whole number. units
Given the following Selling Price: 50$ per unit Variable Cost: 40$ per unit Fixed Cost: 80,000$...
Given the following Selling Price: 50$ per unit Variable Cost: 40$ per unit Fixed Cost: 80,000$ per unit Calculate: A. Contribution margin as well as the contribution margin ratio B. Profit(loss) if 7,200 units are sold C. Margin of safety if 10,100 units are sold D. Break even point in dollars
A firm’s fixed cost $50,000 and its variable cost is $3 per unit. The selling price...
A firm’s fixed cost $50,000 and its variable cost is $3 per unit. The selling price $5 per unit. The management is considering two projects but only one would be selected. Project A will result in an increase in fixed cost, which will amount to $150,000 and a decrease in variable cost which fall to $2. Project B is less ambitious undertaking that results in fixed costs increasing to $70,000 and variable costs decreasing to $2.30 per unit. Currently 55,000...
show the fixed cost are fixed in total but is variable on a per unit basis...
show the fixed cost are fixed in total but is variable on a per unit basis and that variable in total but is fixed on a per unit basis
For a table manufacturing company, selling price for a table is $203.00 per Unit, Variable cost...
For a table manufacturing company, selling price for a table is $203.00 per Unit, Variable cost is $23.00 per Unit, rent is $4,884.00 per month and insurance is $300.00 per month. Company wants to expand its business and improve the table quality, it wants to increase the selling price for a table to $305.00 per Unit, Variable cost to $59.00 per Unit, bigger area will have rent $6,985.00 per month and insurance is $421.00 per month At what point will...
For a table manufacturing company, selling price for a table is $161.00 per Unit, Variable cost...
For a table manufacturing company, selling price for a table is $161.00 per Unit, Variable cost is $25.00 per Unit, rent is $3,531.00 per month and insurance is $285.00 per month. Company wants to expand its business and improve the table quality, it wants to increase the selling price for a table to $290.00 per Unit, Variable cost to $57.00 per Unit, bigger area will have rent $5,704.00 per month and insurance is $389.00 per month At what point will...
1) Suppose that a company has fixed costs of $15 per unit and variable costs $11...
1) Suppose that a company has fixed costs of $15 per unit and variable costs $11 per unit when 15,500 units are produced. What are the fixed costs per unit when 11,000 units are produced? 2)Total costs for ABC Distributing are $240,000 when the activity level is 9,000 units. If variable costs are $3.0 per unit, what are their fixed costs? 3)Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019, they generated $750,000 in...
In 2017, X Company had the following selling price and per-unit variable cost information: Selling price...
In 2017, X Company had the following selling price and per-unit variable cost information: Selling price $172 Variable manufacuting costs 85 Variable selling and administrative costs 22 In 2017, total fixed costs were $643,000. In 2018, there are only two expected changes. Direct material costs are expected to decrease by $8 per unit, and fixed selling and administrative costs are expected to increase by $10,000. What must unit sales be in order for X Company to break even in 2018?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT