In 2021, Demuth Company had a break-even point of $350,000 based on a selling price of $5

Question:

In 2021, Demuth Company had a break-even point of $350,000 based on a selling price of $5 per unit and fixed costs of $112,000. In 2022, the selling price and the variable cost per unit did not change, but the break-even point increased to $420,000.

Instructions

a. Calculate the variable cost per unit and the contribution margin ratio for 2021.

b. Calculate the increase in fixed costs for 2022.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Managerial Accounting Tools For Business Decision Making

ISBN: 9781119731825

6th Canadian Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso

See More Books

Question Posted: May 09, 2023 06:34 AM

See More Questions

In 2011, Demuth Company had a break-even point of $350,000 based on a selling price of $7 per unit and fixed costs of $105,000. In 2012, the selling price and the variable cost per unit did not...
In 2015, Demuth Company had a break-even point of $350,000 based on a selling price of $5 per unit and fixed costs of $112,000. In 2016, the selling price and the variable cost per unit did not...
In 2016, Manhoff Company had a break-even point of $350,000 based on a selling price of $5 per unit and fixed costs of $112,000. In 2017, the selling price and the variable costs per unit did not...
Tri-State Railroad Company organizes its three divisions, the Southeast (SE), East (E), and South (S) regions, as profit centers. The chief executive officer (CEO) evaluates divisional performance,...
Explain the following degrees of influence that one corporation can have over another and the implications of each for financial reporting: a. Control b. Significant influence c. No influence
If a countrys actual exchange rate is 20 units per dollar and its purchasing power parity exchange rate is 25, is its currency under- or overvalued? Explain your answer.
Journalize the following transactions of Cramer, Inc., which ends its accounting year on June 30: Apr 1 Jun 6 30 Loaned $20,000 cash to R. Simpson on a one-year, 8% note. Sold goods to Friday, Corp.,...
In 2013, Winslow International, Inc.s controller discovered that ending inventories for 2011 and 2012 were overstated by $200,000 and $500,000, respectively. Determine the effect of the errors on...
Which of the two financing arrangements would you recommend for the parent? Assess the forecasted NPV for each exchange rate scenario to compare the two financing arrangements and substantiate your...
SPK State Government in Malaysia is expected to collect RM720,304,000 for the total revenue in 2017. A total amount of RM324,136,800 is expected to be contributed by the tax revenue, while non tax...
Volmar Company had sales in 2022 of $1,250,000 on 50,000 units. Variable costs totalled $600,000, and fixed costs totalled $500,000. A new raw material is available that will decrease the variable...
Pro Sports Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022, the company reported the following operating results while operating at 90% of...
Use the fact that 1. Solve 2. Solve -2] S2x + 2y = 4 Itx+ y= 1.
Suppose that Blossom acquires land for $ 7 0 0 0 0 cash. Additional costs are as follows. Removal of shed $ 2 0 0 Filling and grading 1 0 0 0 Salvage value of lumber of shed 1 0 0 Broker commission 1...
What distinguishes a real-time operating system (RTOS) from general-purpose operating systems, and what are the critical factors in ensuring deterministic behavior in RTOS ?
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales Variable...
18. An arrow is fired into a small target at rest on a frictionless surface. The arrow's mass is 20 g and the target's mass is 2.50 kg. If the speed of the arrow and target combined is 0.67 m/s, what...
Analysis of the elements of the crime Instructions After studying the required resources, analyze the different elements of the crime and their relationship with the special criminal laws. You must...
Let Show that u3 + v3 + w3 - 3uvw = 1. 4! 710! .8 wt+
A random sample of 10 houses heated with natural gas in a particular area, is selected, and the amount of gas (in therms) used during the month of January is determined for each house. The resulting...
Describe the process a company may use in screening and approving the capital expenditure budget.
What are the advantages and disadvantages of the cash payback technique?
Two types of present value tables may be used with the discounted cash flow technique. Identify the tables and the circumstance(s) when each table should be used.
1. Find the length of an arc in a circle of radius 10 centimeters subtended by the central angle of 50. Show your work. 2. Graph on [-4, 4] and verbalize how the graph varies from the graphs of ....
Yeri runs K-Beauty, a Korean skincare retail store in Auckland, New Zealand, as a sole trader. The following GST-exclusive information has been provided in relation to the income year ended 31 March...
Scenario Your business has been open for a month, and you have prepared an income statement and completed a variance analysis on the data. Now you will meet with investors and a few other internal...

In 2021, Demuth Company had a break-even point of $350,000 based on a selling price of $5

Question:

Step by Step Answer:

a b 1 At breakeven fixed costs contri...View the full answer

Managerial Accounting Tools For Business Decision Making

Students also viewed these Business questions