Question
In: Accounting
1) The fixed costs at Harley Motors are $1 million annually. The main product has revenue...
1) The fixed costs at Harley Motors are $1 million annually. The main product has revenue of $8.50 per unit and $4.25 variable cost. Determine the following:
(a) Breakeven quantity per year.
(b) Annual profit if 200,000 units are sold and if 350,000 units are sold.
Solutions
Expert Solution
| (PER UNIT) | ||||
| SELLING PRICE | 8.5 | |||
| LESS | VARIABLE COST | 4.25 | ||
| CONTRIBUTION | 4.25 | |||
| A) | BREAK EVEN QUANTITY | FIXED COST / CONTRIBUTION PER UNIT | ||
| 1000000 / 4.25 | ||||
| 235294.1 UNITS | ||||
| B) | ANNUAL PROFIT IF 200,000 UNITS ARE SOLD | |||
| CONTRIBUTION (UNITS* CONTRIBUTION PER UNIT) | 850000 | 200000 * 4.25 | ||
| LESS | FIXED COST | 1000000 | ||
| PROFIT / (LOSS) | (1,50,000) | |||
| ANNUAL PROFIT IF 350,000 UNITS ARE SOLD | ||||
| CONTRIBUTION (UNITS* CONTRIBUTION PER UNIT) | 1487500 | 350000 * 4.25 | ||
| FIXED COST | 1000000 | |||
| PROFIT / (LOSS) | 4,87,500 | |||
ekkarill92 answered 2 years agoRelated Solutions
Generic Motors Corporation has two product lines, A and B. Its revenue and costs for last...
Generic Motors Corporation has two product lines, A and B. Its
revenue and costs for last year is as follows:
Product A
Product B
Total
sales volume (units)
100
200
300
Revenue
$6,000
$30,000
$36,000
Costs:
direct
materials
$1,200
$6,000
$7,200
direct labor
$3,000
$12,000
$15,000
OH costs
$11,700
Profit
$2,100
Generic Motors uses ABC to allocate the overhead costs. It
examined the main activities in the firm, and decided to break up
the total overhead costs of $11,700 into...
6. If a product costs $50 per unit, the fixed costs are $1000,000 and the revenue...
6. If a product costs $50 per unit, the fixed costs are
$1000,000 and the revenue is $65 per unit, how many units the
company should sell to achieve a profit return of 20% over the
initial investment of $2.5 million? Show your calculations. (2
points)
Yonka Beauty products has total variable costs of $25 million and fixed costs of $60 million...
Yonka Beauty products has total variable costs of $25 million
and fixed costs of $60 million per year. Sales for the year are 5
million units at an average price of $35. What are breakeven
units?
A.12 million.
B.6 million.
C.5 million.
D.2 million.
E.3 million.
Quantity Total Revenue Marginal Revenue Total Cost Marginal Cost Fixed Costs ATC Average Fixed Costs Average...
Quantity
Total Revenue
Marginal Revenue
Total Cost
Marginal Cost
Fixed Costs
ATC
Average Fixed Costs
Average Variable Costs
0
0
-
10
-
10
-
-
-
1
8
24
14
24
2
16
34
10
17
3
24
42
8
14
4
32
49
7
12.25
5
40
57
8
11.4
6
48
67
10
11.17
7
56
81
14
11.57
8
64
99
18
12.38
9
72
123
24
13.67
1b. At a price of $14, what is...
QUESTION 1 An information product typically has low total fixed costs and high marginal costs. high...
QUESTION 1
An information product typically has
low total fixed costs and high marginal costs.
high total fixed costs and high marginal costs.
low total fixed costs and low marginal costs.
high total fixed costs and low marginal costs.
QUESTION 2
Advertising intended to reach as many consumers as possible,
typically through television, newspaper, or magazine ads is
referred to as
direct marketing.
mass marketing.
subliminal advertising.
interactive advertising.
QUESTION3
If firms in a monopolistically competitive industry are
operating with...
How has General Motors performed in terms of revenue and profit this past year? (has revenue...
How has General Motors performed in terms of revenue and profit
this past year? (has revenue grown, did profit slip)
How has net income performed in the past 4 quarters and 5 years?
What is the market capitalization for the company? Has it grown in
the past year?
Please cite sources.
Thanks!
The fixed costs of operating the maintenance facility of General Hospital are $4,500,000 annually. Variable costs...
The fixed costs of operating the maintenance facility of
General Hospital are $4,500,000 annually. Variable costs are
incurred at the rate of $30 per maintenance-hour. The facility
averages 40,000 maintenance-hours a year. Budgeted and actual hours
per user for 2017 are as follows:
Budgeted hours Actual hours
Building and grounds 10,000 12,000
Operating and emergency 8,000 8,000
Patient care 21,000 22,000
Administration 1,000 1,200
Total 40,000 43,200
Assume that budgeted maintenance-hours are used to
calculate the allocation rates.
Required:
a....
A resort hotel annual sales revenue of $1,000,000, Variable costs of $350,000, and a fixed costs...
A resort hotel annual sales revenue of $1,000,000, Variable
costs of $350,000, and a fixed costs of $570,000. The fixed costs
include $80,000 a year for land rental lease.
a) Calculate the hotel's breakeven point.
b) If the owners had an equity investment in the hotel of
$1,200,000. What level of sales revenue is required for an
operating income (BT) representing a 15% return on their
investment?
c). In a renegotiation of the land lease, the landowner has
offered management...
Year 0 1 Revenue 600.00 Fixed costs 100.00 Variable costs 200.00 Additional investment in NWC 10.00...
Year
0
1
Revenue
600.00
Fixed costs
100.00
Variable costs
200.00
Additional investment in NWC
10.00
Additional investment in operating long-term assets
70.00
Depreciation
60.00
Interest expenses
35.00
Newly issued debt
25.00
Principle repayments
15.00
Tax rate
0.40
Market value of the firm:
Price per share
No. of shares
Market value
Short-term debt
100.00
Long-term debt
600.00
Preferred stock
10.00
10
100.00
Common stock, equity
18.00
100
1,800.00
Total
2,600.00
Cost of equity (Rs)
0.1500
Growth rate per year from...
Year 0 1 Revenue 600.00 Fixed costs 100.00 Variable costs 200.00 Additional investment in NWC 10.00...
Year
0
1
Revenue
600.00
Fixed costs
100.00
Variable costs
200.00
Additional investment in NWC
10.00
Additional investment in operating long-term assets
70.00
Depreciation
60.00
Interest expenses
35.00
Newly issued debt
25.00
Principle repayments
15.00
Tax rate
0.40
Market value of the firm:
Price per share
No. of shares
Market value
Short-term debt
100.00
Long-term debt
600.00
Preferred stock
10.00
10
100.00
Common stock, equity
18.00
100
1,800.00
Total
2,600.00
Cost of equity (Rs)
0.1500
Growth rate per year from...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Research the internet for companies that have executed data science projects. Pick one company and describe...
- Explain two theories or frameworks for understanding how Western Europe emerged out of 1,000 years of...
- Two cannons are mounted as shown in the drawing and rigged to fire simultaneously. They are...
- What is the potential of a cell made up of Zn|Zn2+ and Cu|Cu2+ half-cells at 25o...
- Write a Java Program using the following instruction: Create the following 3 methods that calculate and...
- How would the S/D curves shift if a $3 tax was imposed on suppliers for each...
- Why should a time-based authentication system invalidate the current password on a successful authentication?
ADVERTISEMENT