Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer the question completely and show your work. Pierre Computer Company manufactures personal computers and tablets. Based on the latest information from the cost

image text in transcribed
image text in transcribed
please answer the question completely and show your work.
Pierre 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 5710 and the weighed average variable cost per unit is $497. The company does not expect the sales mix to vary for the next year. Average fixed costs per month are $108,630 Read the requirements Requirement 1. What is the number of units that must be sold each month to reach the breakeven point? Start by selecting the formula and entering the amounts to compute the breakeven point in units. (Complete all input fields. Enter a "0" for any zero balances.) 1)- Breakeven in units 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 870 units per month, what is the margin of safety in units and dollars? 3. If Pierre Computer Company desires to make a profit of S10,650 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 $25,560 per month, but the weighted average variable cost per unit will increase to 3639 per unit What is the new breakeven point in units? Does this increase or decrease the margin of safety? Why or why not? Print Done Contribution margin per unit Contribution margin ratio 4 Fixed costs Target profit Variable costs

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_2

Step: 3

blur-text-image_3

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 For Beginners

Authors: Kokab Rahman

1st Edition

149479294X, 978-1494792947

More Books

Students also viewed these Accounting questions

Question

What are the potential benefits of free trade?

Answered: 1 week ago

Question

Explain the key components of an assessment center (AC).

Answered: 1 week ago