Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company wants to begin selling a new pair of hand-held pliers in the upcoming fiscal year. They want to know how many hand-held pliers

A company wants to begin selling a new pair of hand-held pliers in the upcoming fiscal year. They want to know how many hand-held pliers they will have to sell in order to break-even on this investment. They received the following data from the chief financial officer:

Fixed costs

Metal molding machine $100,000

Plastic grip molder $25,000

Sander $5,000

Variable costs

Packaging material $ 1.00

Raw material $ 1.00

Grip material $ 0.50

Shipping $ 0.50

The marketing department estimates that they can sell their new pliers for $ 15.00 per unit. The target profit goal for the first year is $ 100,000.

Which of the following represents the breakeven volume (excluding the target profit goal; allow for rounding to the nearest integer, if needed)

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

Advanced Accounting

Authors: Debra C. Jeter, Paul K. Chaney

7th edition

1119373204, 9781119373254 , 978-1119373209

More Books

Students also viewed these Accounting questions

Question

1. To generate a discussion on the concept of roles

Answered: 1 week ago