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please put in order. Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 118,500 units at a price of $45
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Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 118,500 units at a price of $45 per unit during the current year. Its income statement is as follows: The division of costs between variable and ficed is as follows: Management is considering a plant expansion program for the following year that will permit an increase of $405,000 in yearly sales. The expansion will increase fixed costs by $54,000, but will not affect the relationship between sales and variable costs. Required: 1. Determine the total variable costs and the total fixed costs for the current year. 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable test Unit contibuton margen 3. Compute the break-even sales (units) for the current year. units 4. Compute the break-even sales (units) under the proposed program for the following year. units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the costs for the current year. Total variatile couts Toeal haed eatt 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Snit varisbe cour Unit coutributibn imain 3. Compute the break-even sales (units) for the current. year. units 4. Compute the break-even sales (units) under the proposed program for the following year. units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $1,927,500 of income from operations that was earned in the current year. units 6. Determine the maximum income from operations possible with the expanded plant. 7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year? $ 8. Based on the data given, would you recommend accepting the proposal? a. In favor of the proposal because of the reduction in break-even point. b. In favor of the proposal because of the possibility of increasing income from operations. c. In favor of the proposal because of the increase in break-even point. d. Reject the proposal because if future sales remain at the current level, the income from operations will increase. e. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales. Choose the correct answer. Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Cleves Company anticipates a unit selling price of $130, a unit variable cost of $65, and fixed costs of $728,000. Required: 1. Compute the anticipated break-even sales (units). units 2. Compute the sales (units) required to realize a target profit of $318,500. units 3. Construct a cost-volume-profit chart, assuming maximum sales of 22,400 units within the relevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even. 4. Determine the probable income (loss) from operations if sales total 17,900 units. If required, use the minus sign to indicate a loss. $ 2. Compute the sales (units) required to realize a target profit of $318,500. units 3. Construct a cost-volume-profit chart, assuming maximum sales of 22,400 units within the relevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even. 4. Determine the probable income (loss) from operations if sales total 17,900 units. If required, use the minus sign to indieate a loss. Sales Mix and Break-Even Sales Data related to the expected sales of laptops and tablets for Tech Products lnc. for the current year, which is typical of recent years, are as follows: The estimated fixed costs for the current year are $660,000. Required: 1. Determine the estimated units of sales of the overall point for the current year. units 2. Based on the break-even sales (units) in part (1). determine the unit sales of both laptops and tablets for the current year. taptoes: Thies: 3. Assume that the sales mix was 70% laptops and 30% tablets. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. units Why is it so different? The break-even point is in this scenario than in part (1) because the sales mix is weighted heavily toward the product with the contribution margin per unit of product. Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 118,500 units at a price of $45 per unit during the current year. Its income statement is as follows: The division of costs between variable and ficed is as follows: Management is considering a plant expansion program for the following year that will permit an increase of $405,000 in yearly sales. The expansion will increase fixed costs by $54,000, but will not affect the relationship between sales and variable costs. Required: 1. Determine the total variable costs and the total fixed costs for the current year. 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable test Unit contibuton margen 3. Compute the break-even sales (units) for the current year. units 4. Compute the break-even sales (units) under the proposed program for the following year. units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the costs for the current year. Total variatile couts Toeal haed eatt 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Snit varisbe cour Unit coutributibn imain 3. Compute the break-even sales (units) for the current. year. units 4. Compute the break-even sales (units) under the proposed program for the following year. units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $1,927,500 of income from operations that was earned in the current year. units 6. Determine the maximum income from operations possible with the expanded plant. 7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year? $ 8. Based on the data given, would you recommend accepting the proposal? a. In favor of the proposal because of the reduction in break-even point. b. In favor of the proposal because of the possibility of increasing income from operations. c. In favor of the proposal because of the increase in break-even point. d. Reject the proposal because if future sales remain at the current level, the income from operations will increase. e. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales. Choose the correct answer. Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Cleves Company anticipates a unit selling price of $130, a unit variable cost of $65, and fixed costs of $728,000. Required: 1. Compute the anticipated break-even sales (units). units 2. Compute the sales (units) required to realize a target profit of $318,500. units 3. Construct a cost-volume-profit chart, assuming maximum sales of 22,400 units within the relevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even. 4. Determine the probable income (loss) from operations if sales total 17,900 units. If required, use the minus sign to indicate a loss. $ 2. Compute the sales (units) required to realize a target profit of $318,500. units 3. Construct a cost-volume-profit chart, assuming maximum sales of 22,400 units within the relevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even. 4. Determine the probable income (loss) from operations if sales total 17,900 units. If required, use the minus sign to indieate a loss. Sales Mix and Break-Even Sales Data related to the expected sales of laptops and tablets for Tech Products lnc. for the current year, which is typical of recent years, are as follows: The estimated fixed costs for the current year are $660,000. Required: 1. Determine the estimated units of sales of the overall point for the current year. units 2. Based on the break-even sales (units) in part (1). determine the unit sales of both laptops and tablets for the current year. taptoes: Thies: 3. Assume that the sales mix was 70% laptops and 30% tablets. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. units Why is it so different? The break-even point is in this scenario than in part (1) because the sales mix is weighted heavily toward the product with the contribution margin per unit of product Step by Step Solution
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