Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pierre Computer Company manufactures personal computer and tablets Based on the latest information from the cost accountant, using the current les mix, the world wales

image text in transcribed
image text in transcribed
Pierre Computer Company manufactures personal computer and tablets Based on the latest information from the cost accountant, using the current les mix, the world wales price per unit is $800 and the ed average cost per ut i 5860. The company does not expocl the sale mix to vary for the rest you. Average fored cont per month $100,000 Read the Start by seeing the commandentong the amounts to compute the reven pont in units (Complete with a' for any zerowances) CE Foco Target profit - Contibution per Broskev in usts 100 000 - 240 450 Hequirement 2. It the comery Coryel 880 unts per month, what is the maryn of safety in us and dollars Begin by calculating the margin of safety in units Expect Brake Margin of safety in its 150 230 Now calculate the main of safety in dolas Magnety in its Sales pece petit Mano salty do 430 300 Ruquirement Pere Computer Company desires to make a profit of $16.000 per month, how maw.unts must be sold? Come input fortwy zares Red X 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 880 units per month, what is the margin of safety in units and dollars? 3. If Pierre Computer Company desires to make a profit of $16,800 per month, how many units must be sold? 4. Pierre Computer Company thinks it can restructure some costs so that fixed costs will be reduced to $56,000 per month, but the weighted-average variable cost per unit will increase to $640 per unit. What is the new breakeven point in units? Does this increase or decrease the margin of safety? Why or why not

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

Accounting Understanding And Practice

Authors: Robert Perks

4th Edition

0077139135, 978-0077139131

More Books

Students also viewed these Accounting questions

Question

Describe some common hazards in the contemporary workplace

Answered: 1 week ago