Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

write the answers clearly with short workings 1. Calculate the per-unit contribution margin of a product that has a sale price of $200 if the

write the answers clearly with short workings 1. Calculate the per-unit contribution margin of a product that has a sale price of $200 if the variable costs per unit are $65. 2. Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. a. What is the companys break-even point in units? b. What is the companys break-even point in dollars? c. Calculate profit for the month when they will sell 900 units. d. How many units will Maple need to sell in order to reach a target profit of $45,000? 3. Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. a. What is the companys break-even point in units? b. What is the companys break-even point in dollars? c. How many units will Marlin need to sell in order to realize a target profit of $48,000? 4. Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $18,250 per year. The information they will use to consider these changes is shown here. what will be their new break-even point in units and dollars? 5. Assume that as an investor, you are planning to enter the construction industry as a panel formwork supplier. The potential number of forthcoming projects, you forecasted that within two years, your fixed cost for producing formworks is $300,000. The variable unit cost for making one panel is $15. The sale price for each panel will be $25. If you charge $25 for each panel, how many panels you need to sell in total, in order to start making Profit? 6. Marchete Company produces a single product. They have recently received the results of a market survey that indicates that they can increase the retail price of their product by 8% without losing customers or market share. All other costs will remain unchanged. Their most recent CVP analysis is shown. If they enact the 8% price increase, what will be their new break-even point in units and dollars? 7. A store sells t-shirts. The average selling price is $15, and the average variable cost (cost price) is $9. Thus, every time the store sells a shirt it has $6 remaining after it pays the manufacturer. This $6 is referred to as the unit contribution. a. Suppose the fixed costs of operating the store (its operating expenses) are $100,000 per year. Find Break-even in units? b. If the owner desired a profit of $25,000, what will be break-even point in unit? c. If fixed costs rose to $110,000, break-even in units volume would be? d. If the average selling price rose to $16, break even volume would fall to what

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

Students also viewed these Accounting questions

Question

State the uses of job description.

Answered: 1 week ago

Question

Explain in detail the different methods of performance appraisal .

Answered: 1 week ago