Question
1.A company has fixed costs of $99,450. Its contribution margin ratio is 39% and the product sells for $57 per unit. What is the company's
1.A company has fixed costs of $99,450. Its contribution margin ratio is 39% and the product sells for $57 per unit. What is the company's break-even point in dollar sales?
2.Barclay Bikes manufactures and sells three distinct styles of bicycles: the Youth model sells for $500 and has a unit contribution margin of $205; the Adult model sells for $1,050 and has a unit contribution margin of $550; and the Recreational model sells for $1,200 and has a unit contribution margin of $600. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,700,000, calculate the firm's selling price per composite unit.
3.Wang Co. manufactures and sells a single product that sells for $250 per unit; variable costs are $145 per unit. Annual fixed costs are $873,600. Current sales volume is $4,280,000. Management targets an annual pre-tax income of $1,205,000. Compute the dollar sales to earn the target pre-tax net income.
McCoy Brothers manufactures and sells two products, A and Z in the ratio of 5:2. Product A sells for $87; Z sells for $108. Variable costs for product A are $46; for Z $53. Fixed costs are $472,500. Compute the number of units of Product A McCoy must sell to break even.
4.The following information is available for a company's cost of sales over the last five months.
Month | Units sold | Cost of sales | ||
January | 440 | $ | 32,600 | |
February | 840 | $ | 39,000 | |
March | 1,800 | $ | 51,000 | |
April | 2,440 | $ | 63,000 | |
Using the high-low method, the estimated total fixed cost is:
5.
Mott Company's sales mix is 3 units of A, 2 units of B, and 1 unit of C. Selling prices for each product are $23, $33, and $43, respectively. Variable costs per unit are $18, $19, and $26, respectively. Fixed costs are $318,000. What is the break-even point in composite units?
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