Question: Consider the following income statement and answer the questions that follow Sales (100 units) ..... $200 Variable costs ($.80 ea) .. 80 Fixed Costs ........

Consider the following income statement and answer the questions that follow

Sales (100 units) ..... $200

Variable costs ($.80 ea) .. 80

Fixed Costs ........ 20

EBIT .......... 100

Interest Expense ...... 30

EBT .......... 70

Income tax ....... 24

Net Income ....... 46


a. What is the firm’s Breakeven Point in units?

b. Draw a breakeven chart for this firm.


Step by Step Solution

★★★★★

3.31 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a Computation of the Break Even point in units Break Even p... View full answer

blur-text-image
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)

Excel file Icon

68-B-C-A-C-P-A (598).xlsx

300 KBs Excel File

Students Have Also Explored These Related Cost Accounting Questions!

Q:

Consider the following income statement and noncash working capital account information of Yahk Ltd Yahk Assume Yahk uses IFRS YAHK LTD Noncash Working Capital Accounts As of December 31 20172016...

Q:

Consider the following income statement for WatchoverU Savings Inc. (in millions): a. What is WatchoverUs expected net interest income at year-end? b. What will be the net interest income at year-...

Q:

The following income statement and balance sheets for Virtual Gaming Systems are provided. Required: Assuming that all sales were on account, calculate the following risk ratios for 2015. 1....

Q:

Consider the following income statement and answer the questions that follow: Sales (100 units) $200 Variable costs ($.80 ea) 80 Fixed Costs 20 EBIT 100 Interest Expense 30 EBT 70 Income tax 24 Net...

Q:

please draw the breakeven point in units 6. Consider the following income statement and answer the questions that follow: Sales (100 units) $200 Variable costs ($.80 ea) so Fixed Costs EBIT Interest...

Q:

Question: 1.List the three steps that make up the general approach to capital budgeting. 2.Define an "Incremental cash flow" as the term is used in capital budgeting 3.Your firm is considering buying...

Q:

Preferably want this done in excel, word is fine too though if not. Let me know if you have any questions Accounting 2 Handouts Assignment 9.1 Handout 1. Chicago Acoustics builds innovative...

Q:

Please Help I am having a problem with several questions? 1. Chicago Acoustics builds innovative loudspeakers for music and home theater systems. Consider the following costs: Requirement Identify...

Q:

Miller Company's most recent income statement follows: Per Unit $ 20 12 Sales (15, 000 units) Less: Variable expenses Contribution margin Less: Fixed expenses Net income Total $300,000 180,000...

Q:

Question 1 Uber's financial statements for the year ended Dec 31 2020 showed a net loss of $6.788 billion on sales of 11.139 billion. Some analysts are quick to blame Covid-19 for this loss, but...

Q:

Joanne Inc, is considering investing in a new project, based on information given: a. Prepare The Total Cash Flow Projection. b. Calculate the NPV and Payback Period of this project. (Preset time for...

Q:

10 Points Question 6 Cunningham, Inc, sells MP3 players for $60 each. Variable costs are $40 per unit, and fixed costs total $120,000. How many MP3 players must Cunningham sell to earn net income of...

Q:

Which of the following is an advantage of using cost - based transfer prices? Multiple Choice Such prices motivate the selling division to control costs. Such prices provide a sense of fairness. Such...

Q:

Suppose you want to buy a car, you are allowed to pay the car in a series of payments over time. In particular, you make three payments: $10,000 today, $10,000 1 year from today, and $10,000 2 years...

Q:

Assume the demand for real money balances is given as: 0.2Y L(i, Y) = Find an expression for Velocity of Money, V. . b. What is the Velocity of money ifr 5% and ne=2%

Q:

ABS mall is considering building a new parking lot. The land will cost $25,000 and the construction cost of the lot is estimated to be $150,000. Each year costs associated with the lot are estimated...

Q:

Review the following insurance plans and answer the questions below. Services Bronze Silver Gold Monthly cost $163 $194 $245 Deductible $6,000 $4,000 $1,000 Primary care $35 co-pay for three visits,...

Q:

Ahmet grows tomatoes in his 100 by 100 meters garden. He then sells the crop at the local farmers' market. two summers ago, he was able to produce and sell 1200 kgs of tomatoes. Last summer, he tried...

Q:

Eagle Co. has cosigned the mortgage note on the home of its president, guaranteeing the indebtedness in the event that the president should default. Eagle considers the likelihood of default to be...

Q:

The total assets and total liabilities of Dollar Tree Inc. and Target Corporation are shown below. Determine the stockholders equity of eachcompany. Dollar Tree (in millions) Target Corporation (in...

Q:

Determine the missing amount for each of thefollowing: AssetsLiabilities Stockholders'Equity = $118,000 b. $766,750= X + $411,740 a. $338,100 $3,250,300 = $1,178,100

Q:

Mega Concepts is a motivational consulting business. At the end of its accounting period, December 31, 2013, Mega Concepts has assets of $1,250,000 and liabilities of $475,000. Using the accounting...

Q:

Red, Incorporated, Yellow Corporation, and Blue Company each will pay a dividend of $1.45 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each...

Q:

for(int i=0;i

Q:

Here are data on two companies. The T-bill rate is 5.4% and the market risk premium is 8.3%. Company $1 Discount Store Everything $5 Forecast return 16% 15% Standard deviation of returns 26% 28% Beta...