Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Porcelain Computer Company manufactures personal computers and tablets. Based on the latest information from the cost accountant, using the current sales mix, the weighted average

image text in transcribed

image text in transcribed

Porcelain 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 $700 and the weighed-average variable cost per unit is $420. The company does not expect the sales mix to vary for the next year Average fixed costs per month are $128 800 Read the fecunements 1. What is the number of units that must be sold each month to reach the breakeven point? 2. If the company currently sells 810 units per month, what is the margin of safety in units and dollars? 3. If Porcelain Computer Company desires to make a profit of $39,200 per month, how many units must be sold? 4. Porcelain Computer Company thinks it can restructure some costs so that fixed costs will be reduced to $22.400 per month, but the weighted average variable cost per unit will increase to $630 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

Water Audits And Loss Control Programs Manual Of Water Supply Practices M36

Authors: AWWA Staff

3rd Edition

1583216316, 978-1583216316

More Books

Students also viewed these Accounting questions

Question

Determine the value of the operation floor(8.4) + ceil(9.9)

Answered: 1 week ago