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3 Exercise 3-6A (Algo) Cost structure, risk, and the break-even point LO 3-2 3 points Walton Company produces a product that sells for $43 per
3 Exercise 3-6A (Algo) Cost structure, risk, and the break-even point LO 3-2 3 points Walton Company produces a product that sells for $43 per unit and has a variable cost of $22 per unit. Walton incurs annual fixed costs of $130,200. Required eBook a. Determine the sales volume in units and dollars required to break even. (Do not round intermediate calculations.) b. Calculate the break-even point assuming fixed costs increase to $174,300. (Do not round intermediate calculations.) Hint a. Sales volume in units Sales in dollars Print b. Break-even units Break-even sales References 1 Exercise 3-1A (Algo) Equation method LO 3-1 3 points Franklin Corporation produces products that it sells for $19 each. Variable costs per unit are $10, and annual fixed costs are $187,200. Franklin desires to earn a profit of $35,100. Required eBook a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. Print a. Break-even point in units Break-even point in dollars References b. Sales volume in units Sales in dollars 2 Exercise 3-4A (Algo) Determining variable cost from incomplete cost data LO 3-1 3 points Jordan Corporation produced 215,000 watches that it sold for $20 each during year 2. The company determined that fixed manufacturing cost per unit was $7 per watch. The company reported a $1,720,000 gross margin on its year 2 financial statements. Required Determine the variable cost per unit, the total variable product cost, and the total contribution margin. eBook Variable cost per unit Hint Total variable product cost Total contribution margin Print References
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