Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Diamond Jim s makes and sells class rings for local schools. Operating information is as follows: Selling price per ring $ 6 0 0 Variable

Diamond Jims makes and sells class rings for local schools. Operating information is as follows:
Selling price per ring $600
Variable cost per ring
Rings and stones $220
Sales commissions $48
Overhead $32
Annual fixed costs
Selling $180,000
Administrative 105,000
Manufacturing 60,000
a. What is Diamond Jims break-even point in rings? Answer
rings
b. What is Diamond Jims break-even point in sales dollars? $Answer
c. What would Diamond Jims break-even point be in rings if sales commissions increased to $54 per ring?
Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units).
Answer
rings
d. What would Diamond Jims break-even point be in rings if fixed selling expenses decreased by $6,000?
Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units).
Answer
rings

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

Students also viewed these Accounting questions