Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1)A company sells a product which has a unit sales price of $70, unit variable cost of $43 and total fixed costs of $405,000. The

1)A company sells a product which has a unit sales price of $70, unit variable cost of $43 and total fixed costs of $405,000. The number of units the company must sell to break even is

2)A company desires to sell a sufficient quantity of products to earn a profit of $270,000. If the unit sales price is $70, unit variable cost is $43, and total fixed costs are $405,000, how many units must be sold to earn net income of $270,000?

3)

The following information is available for Barkley Company: Sales $800,000 Total fixed expenses $200,000 Cost of goods sold 520,000 Total variable expenses 480,000 A CVP income statement would report

A.

gross profit of $280,000.

B.

contribution margin of $320,000.

C.

contribution margin of $280,000.

D.

gross profit of $120,000.

4)The following monthly data are available for Tugg, Inc. which produces only one product: Selling price per unit, $42; Unit variable expenses, $14; Total fixed expenses, $42,000; Actual sales for the month of June, 4,000 units. How much is the margin of safety for the company for June?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Cost Accounting

Authors: Edward J. Vanderbeck

16th edition

9781133712701, 1133187862, 1133712703, 978-1133187868

More Books

Students also viewed these Accounting questions

Question

3. What is the answer for P(2.01 Answered: 1 week ago

Answered: 1 week ago