Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q6. Consider the following information: ITEM A B C SALES(Units) 9000 12000 15000 25000 SALES $54000 60000 60000 75000 VARIABLE COST 5.95 3.75 3.50 1.75

image text in transcribed

Q6. Consider the following information: ITEM A B C SALES(Units) 9000 12000 15000 25000 SALES $54000 60000 60000 75000 VARIABLE COST 5.95 3.75 3.50 1.75 D Costs of the period are as follows (salaries $45000, rent $10000, depreciation $8000, furniture and computers $24000, raw materials $ 120,000, insurance $5000, periodic maintenance $4000, interest expense $3000, utilities (fixed) $4000, property tax $3000, and advertising $9000 (set at the beginning of the year), and new cars $62000). 1 What is the breakeven point for all items? 2 How many units of item A, B, C, & D are needed to breakeven? 3 Calculate the profit of item A. Q6. Consider the following information: ITEM A B C SALES(Units) 9000 12000 15000 25000 SALES $54000 60000 60000 75000 VARIABLE COST 5.95 3.75 3.50 1.75 D Costs of the period are as follows (salaries $45000, rent $10000, depreciation $8000, furniture and computers $24000, raw materials $ 120,000, insurance $5000, periodic maintenance $4000, interest expense $3000, utilities (fixed) $4000, property tax $3000, and advertising $9000 (set at the beginning of the year), and new cars $62000). 1 What is the breakeven point for all items? 2 How many units of item A, B, C, & D are needed to breakeven? 3 Calculate the profit of item A

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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