Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

chego.com/homework-help/Horngren Accounting 12th edition Chapt Office Home Google Docs Calendar di notes e LEARNING 70344864 Prason 3 ACC Apps Mal MAN = Chegg Study Textbook

image text in transcribed
image text in transcribed
chego.com/homework-help/Horngren Accounting 12th edition Chapt Office Home Google Docs Calendar di notes e LEARNING 70344864 Prason 3 ACC Apps Mal MAN = Chegg Study Textbook Solutions Expert Q&A Study Pack Practice home / study/business/accounting / accounting solutions manuals/homgren's accounting / 12th edition / chapter 21/problem Horngren's Accounting (12th Edition) Chapter 21, Problem 69CP 0 1 Bookmark Show all steps: ON Problem Computing breakeven sales and sales needed to earn a target profit; performing sensitivity analysis This problem continues the Piedmont Computer Company situation from Chapter 19. Piedmont Computer Company manufactures personal computers and tablets. Based on the latest information from the cost accountant, using the current sales mix, the weighted average sales price per unit is $750 and the weighed-average variable cost per unit is $450. The company does not expect the sales mix to vary for the next year Average fixed costs per month are $156,000 Requirements 1. What is the number of units that must be sold each month to reach the breakeven point? 2. If the company currently sells 945 units per month, what is the margin of safety in units and dollars Type here to search O e L MP 9 enovo CFS C Solve it AN D BEARNING C h eca.com/homework help/Horngren -Accounting-12th edition chapter Mol Olle Home Google Docs Calendar U notes Chegg Study Textbook Solutions Expert Q&A Study Pack Practice E Chapter 21. Problem 69CP 0 1 Bookmark Show all steps. ON Computer Company manufactures personal computers and tablets. Based on the latest information from the cost accountant, using the current sales mix, the weighted average sales price per unit is $750 and the weighed-average variable cost per unit is $450. The company does not expect the sales mix to vary for the next year. Average fixed costs per month are $156,000 Requirements 1. What is the number of units that must be sold each month to reach the breakeven point? 2. If the company currently sells 945 units per month, what is the margin of safety in units and dollars? 3. If Piedmont Computer Company desires to make a profit of $15,000 per month, how many units must be sold? 4. Piedmont Computer Company thinks it can restructure some costs so that fixed costs will be reduced to 590,000 per month, but the weighted average variable cost per unit will increase to $525 per unit. What is the new breakeven point in units? Does this increase or decrease the margin of safety? Why or why not? Type here to search Vo

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

Cost Accounting Fundamentals Essential Concepts And Examples

Authors: Steven M. Bragg

6th Edition

1642210234, 9781642210231

More Books

Students also viewed these Accounting questions

Question

5. Explain the supervisors role in safety.

Answered: 1 week ago