Question: Calderon Inc. sells a product for $80 per unit. The variable cost is $55 per unit, and fixed costs are $25,000. Determine (a) the break-even

Calderon Inc. sells a product for $80 per unit. The variable cost is $55 per unit, and fixed costs are $25,000.
Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $20,000.
a. Break-even point in sales units is ____ units
b. Break-even point in sales units if the company desires a target profit of $20,000 is ____ units

Step by Step Solution

★★★★★

3.44 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Breakeven Point of Sales Fixed Co... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1019-B-C-F-D-F(3009).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

4 Exercise 12-16 Algo Book A market researcher for an automobile company suspects differences in preferred color between male and female buyers. Advertisements targeted to different groups should...

Puchalla Corporation sells a product for $310 per unit. The product's current sales are 14,200 units and its break-even sales are 10,224 units. The margin of safety as a percentage of sales is...

You have started a business that sells a home gardening system that allows people to grow vegetables on the countertop in their kitchens. You are considering two options for marketing your product....

Calderon Inc. sells a product for $ 80 per unit. The variable cost is $ 55 per unit, and fixed costs are $ 25,000. Determine (a) The break-even point in sales units (b) The break-even point in sales...

if you can please help me with the following... I will make sure to tip you thanks. Question 1. 1. (TCO 3) A characteristic of managerial accounting would include: (Points : 3) being based on...

Break-Even PointHilton Inc. sells a product for $80 per unit. The variable costis $43 per unit, while fixed costs are $377,844.Determine (a) the break-even point in sales units and (b) thebreak-ev 2...

Erdman Inc. had original sales and cost data for the month of March as follows: Sales: 16,000 units Selling price per unit: $21.00 Variable cost per unit: $9.50 Total fixed costs: $33,500 Calculate...

The towny Company sells a product for $120 per unit. The variable cost is $40 per unit,and fixed costs are $270,000. Determine the (a) break-even points in sales units if the company desires a target...

Suppose you want to estimate the proportion of classmates who plan to spend their junior year abroad. You take a simple random sample of 100 classmates from a total class population of 3500. Twelve...

Consider a continuous flow process, similar to the one we have seen in the National Craneberry Cooperative case, in which pecans approach a plant in trucks containing 100 pecans at a continuous and...

In your initial discussion post, review the problem and discuss the differences caused by using IFRS as compared to U . S

Water vapor enters a continuous flow adiabatic turbine at 8MPA pressure, 550 C temperature and 80m/s speed, and exits at 25 kPa pressure and 0.78 quality at 50m/s speed. As the mass flow rate of the...

Why do plasma sheaths exist at the edge of the plasma and near the vacuum chamber walls? fast electrons are able to escape the plasma bulk and are lost to the walls the vacuum pressure sucks out the...

Laboratory plasmas are typically labeled "cold" plasmas despite very high electron temperatures. What is a possible reason for this? ion temperature is very low electrons carry away most of the heat...

3. What will be the height of mercury if a liquid column manometer containing mercury is used in the steam boiler whose manometric pressure is 8 bar. (Patm=100 kPa, pamercury-13550 kg/m?) a. 3,48 m...

The one of the disadvantages of isotropic etching over anisotropic etching is isotropic etching is a fast process requires the use of a mask makes highly defined vertical walls O reactive gases etch...

6. (LO 5) Table 3.11 shows labour data for Eturia. a) Calculate the productivity rates for each year. , , and b) In which year was labour productivity highest?

Identify an individual who could serve as an example of a transformational leader. How successful or unsuccessful has this person been?

Name the three people today whom you consider to be the most charismatic. How well do they/might they function as a leader?

In your opinion, is it possible for someone with little or no charisma to become charismatic, if so, how? If not, why not?

Tobins Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for November: Units 12" Pizza 16" Pizza Budgeted...

The Triquel Theater Inc. was recently formed. It began operations in March 2017. The Triquel is unique in that it will show only triple features of sequential theme movies. On March 1, the ledger of...

On January 1, 2015, Extensive Manufacturing purchased a machine for $1.050.000 that is expected to have a sette of five years. The company estimated that the residual value of the machine was...