Question
In: Accounting
Break-even sales and sales to realize operating income For the current year ended March 31, Cosgrove...
Break-even sales and sales to realize operating income For the current year ended March 31, Cosgrove Company expects fixed costs of $485,300, a unit variable cost of $46, and a unit selling price of $69.
a. Compute the anticipated break-even sales (units). __________units
b. Compute the sales (units) required to realize operating income of $112,700. ________units
Solutions
Expert Solution
Solution
Anticipated break-even sales (units). 21,100 units
Sales (units) required to realize operating income of $112,700. 26000 units
Working for requirement a
| A | Sale Price per unit | $ 69.00 |
| B | Variable Cost per Unit | $ 46.00 |
| C=A - B | Unit Contribution | $ 23.00 |
| D | Total Fixed cost | $ 485,300.00 |
| E=D/C | Breakeven point in units | 21,100 |
Working for requirement b
| A | Sale Price per unit | $ 69.00 |
| B | Variable Cost per Unit | $ 46.00 |
| C=A - B | Unit Contribution | $ 23.00 |
| D | Total Fixed cost +Desired Income | $ 598,000.00 |
| E=D/C | Units to be sold | 26,000 |
ekkarill92 answered 11 months agoRelated Solutions
Break-Even Sales and Sales to Realize Income from Operations For the current year ending October 31,...
Break-Even Sales and Sales to Realize Income from Operations
For the current year ending October 31, Yentling Company expects
fixed costs of $558,900, a unit variable cost of $56, and a unit
selling price of $83.
a. Compute the anticipated break-even sales
(units).
units
b. Compute the sales (units) required to
realize income from operations of $129,600.
units
Break-Even Sales and Sales to Realize Income from Operations For the current year ending October 31,...
Break-Even Sales and Sales to Realize Income from Operations
For the current year ending October 31, Yentling Company expects
fixed costs of $750,200, a unit variable cost of $64, and a unit
selling price of $95.
a. Compute the anticipated break-even sales
(units).
units
b. Compute the sales (units) required to
realize income from operations of $173,600.
units
1. Barnard Inc. Variable Costing Income Statement For the Year Ended March 31, 20Y1 Sales $1,224,000...
1.
Barnard Inc.
Variable Costing Income Statement
For the Year Ended March 31, 20Y1
Sales
$1,224,000
Variable cost of goods sold:
Variable cost of goods manufactured
$678,500
Inventory, March 31
(92,000)
Total variable cost of goods sold
(586,500)
Manufacturing margin
$637,500
Total variable selling and administrative expenses
(147,900)
Contribution margin
$489,600
Fixed costs:
Fixed manufacturing costs
$312,700
Fixed selling and administrative expenses
96,900
Total fixed costs
(409,600)
Operating income
$80,000
Determine the unit cost of goods manufactured, based on (a)...
Break-Even Sales BeerBev, Inc., reported the following operating information for a recent year: Sales $5,040,000 Cost...
Break-Even Sales
BeerBev, Inc., reported the following operating information for
a recent year:
Sales $5,040,000
Cost of goods sold $1,260,000
Selling, general and administration 490,000
$1,750,000
Income from operations $ 3,290,000
In addition, assume that BeerBev sold 35,000 barrels of beer
during the year. Assume that variable costs were 75% of the cost of
goods sold and 50% of selling, general and administration expenses.
Assume that the remaining costs are fixed. For the following year,
assume that BeerBev expects...
Income Statement For the Year Ended December 31, 2018 Sales &nb
Income Statement
For the Year Ended December 31, 2018
Sales
$8,500,000
Manufacturing Expenses
Variable
$3,250,000
Fixed
overhead
640,000
3,890,000
Gross
Margin
$4,610,000
Selling and administrative expenses
Commissions
$580,000
Fixed marketing expenses
300,000
Fixed admin expenses
450,000
1,330,000
Net Operating
Income
$3,280,000
Fixed Interest
expenses
230,000
Income before
Taxes
$3,050,000
Income Taxes
(21%)
640,500
Net
Income
$2,409,500
Your company is considering out-sourcing the sales and marketing
to an agency specializing in these types of sales....
Income Statement For the Year Ended December 31, 2018 Sales &nb
Income Statement
For the Year Ended December 31, 2018
Sales
$8,500,000
Manufacturing Expenses
Variable
$3,250,000
Fixed
overhead
640,000
3,890,000
Gross
Margin
$4,610,000
Selling and administrative expenses
Commissions
$580,000
Fixed marketing expenses
300,000
Fixed admin expenses
450,000
1,330,000
Net Operating
Income
$3,280,000
Fixed Interest
expenses
230,000
Income before
Taxes
$3,050,000
Income Taxes
(21%)
640,500
Net
Income
$2,409,500
Your company is considering out-sourcing the sales and marketing
to an agency specializing in these types of sales....
Sigma plc’s income statement for the year ended 31 March 2020 and the statements of financial...
Sigma plc’s income statement for the year ended 31 March 2020
and the statements of financial position as at 31 March 2019 and
2020 are provided below.
Income Statement for the year ended 31 March
2020
£m
Revenue
600
Cost of Sales
(360)
Gross Profit
240
Administrative expenses
(90)
Distribution expenses
(60)
Operating Profit (PBIT)
90
Interest income
12
Interest expense
(36)
Profit before Tax
66
Taxation
(15)
Profit for the year
51
Statements of Financial Position as at 31...
Break-Even Sales Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year: Sales...
Break-Even Sales
Anheuser-Busch InBev Companies, Inc., reported the following
operating information for a recent year:
Sales
$5,632,000
__________
Cost of goods sold
$1,408,000
Selling, general and administration
528,000
_______________
$1,936,000
________________
Income from operations
$ 3,696,000*
*Before special items
In addition, assume that Anheuser-Busch InBev sold 44,000
barrels of beer during the year. Assume that variable costs were
75% of the cost of goods sold and 50% of selling, general, and
administration expenses. Assume that the remaining costs are fixed....
Contribution Margin, Break-Even Units, Break-Even Sales, Margin of Safety, Degree of Operating Leverage Aldovar Company produces...
Contribution Margin, Break-Even Units, Break-Even Sales, Margin
of Safety, Degree of Operating Leverage
Aldovar Company produces a variety of chemicals. One division
makes reagents for laboratories. The division's projected income
statement for the coming year is:
Sales (203,000 units @ $70)
$14,210,000
Total variable cost
8,120,000
Contribution margin
$6,090,000
Total fixed cost
4,945,500
Operating income
$1,144,500
Required:
1. Compute the contribution margin per unit,
and calculate the break-even point in units. Calculate the
contribution margin ratio and use it to...
8. Assume that Current Sales are $100,000; and Break even in sales dollars is $75,000. What...
8. Assume that Current Sales are $100,000; and Break even in
sales dollars is $75,000. What is the Margin of Safety ratio?
a. 25%
b. 50%
c. 75%
d. 100%
9. Assume Fixed costs are $10,000; Selling price is $30 and
variable costs are $10. What is the break even in units? Give
answer to the nearest unit.
Group of answer choices
a. 500 units
b. 1,000 units
c. 250 units
d 334 units
10. If Direct Labor is 1...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- How many grams of NaCl are contained in 350. mL of a 0.152 M solution of...
- Why does diversity matter for business? Provide 2-3 benefits and 2-3 challenges
- Dr C #1 An object with mass = 5 kg is oscillating on the end of...
- Calculate the value of a bond that matures in 13 years and has a $1,000 par...
- The documentary Gender Revolution implies that gender today—gender identities and categories—are vastly different today than they...
- 12. What is the payment in month 13 on a CAM loan for $250,000 with a...
- Which of the following is true of variable costing? It expenses administrative costs as costs of...
ADVERTISEMENT