Calderon Inc. sells a product for $80 per unit. The variable cost is $55 per unit, and

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

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 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

Related Book For answer-question

Financial and Managerial Accounting

ISBN: 978-1285078571

12th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

See More Books

Posted Date: May 25, 2018 01:10 AM

See More Questions

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...
Variable costs are controllable and fixed costs are uncontrollable. Do you agree? Explain.
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...
Solve: y(4) +18y"+81y = 0 y(0) = -4, y'(0) = 8, y'(0) = 42, y"(0) = -108 - Submit Question X
Find a pivotal quantity based on a random sample of size n from a n(, ) population, where > 0. Use the pivotal quantity to set up a 1 - confidence interval for .
The following errors took place in journalizing transactions: a. A cash receipt of $6,100 was recorded as a debit to Cash of $1,600 and a credit to Accounts Receivable of $1,600. b. A debit of $3,500...
It is generally known that boys grow at an unusually fast rate between the ages of about 12 and 14. Following are heights, in inches, of 40 boys measured at age 12 and again at age 14. Can you...
Outline the traditional problems associated with the flat- file model that are resolved by the database model.
Alvarado Company produced 6,400 units of product that required 5.5 standard direct labor hours per unit. The standard variable overhead cost per unit is $5.80 per direct labor hour. The actual...
Q3.2 - Linear Regression Classifier Q3.2.1 - Classification Train the Linear Regression classifier on the dataset. You will provide the accuracy for both the test and train sets. Make sure that you...
On January 1, 20X8, Parent Company acquired 90 percent ownership of Subsidiary Corporation, at underlying book value. The fair value of the noncontrolling interest at the date of acquisition was...
a. What are the terms that can be customized in a FLEX option? b. Why was the FI.EX option int roduced by exchanges?
How do LEAPS differ from standard stock options and standard index options?
Why do stock index options involve cash settlement rather than delivery of the underlying stocks?
Indicate whether or not you agree with the following statement: "The minimum bid-offer spread on common stock is in terms of one-eighths."
Explain why you agree or disagree with this statement: "Buying a put is just like short selling the underlying asset. You gain the same thing from either position, if the underlying asset's price...
BSA Company has five employees with the following daily rate: Jullianne, office secretary, P1,000; Justine, production supervisor, P1,500; Stephen, Sales supervisor, P1,200; Marvelous, laborer, P900;...
Read the Forecasting Supply Chain Demand Starbucks Corporation case in your text Operations and Supply Chain Management on pages 484-485, then address the four questions associated with the...
Describe a problem or challenge you had to resolve at school, work, or in your personal life (or elsewhere) and how you went about it. What options did you consider and how did it turn out?
Assume that the business in Exercise 6-9 maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in,...
(a) What is the most important output of the accounting cycle? (b) Do all companies have an accounting cycle? Explain.
The net income reported on the income statement of Cutler Co. was $4,000,000. There were 500,000 shares of $10 par common stock and 100,000 shares of $2 preferred stock outstanding throughout the...
Ferguson Memorials Limited issued a $\$ 1,000,000,5 \%$ annual interest non-convertible bond with detachable stock warrants. One warrant is attached to each $\$ 1,000$ bond and allows the holder...
Convertible Debt, Investor's Option: Nero Solutions Company issued an $\$ 800,000,6 \%$, three-year bond for $\$ 806,000$. The bond pays interest annually, at each yearend. At maturity, the bond...
Convertible Bond, Investor's Option: Bixon Corp. Ltd. issued convertible bonds payable on 1 January $20 \mathrm{Xl}$, when the market interest rate was $10 \%$. The bond indenture stated: \(\$...

Calderon Inc. sells a product for $80 per unit. The variable cost is $55 per unit, and

Question:

Expert Answer:

Breakeven Point of Sales Fixed Cos... View the full answer

Financial and Managerial Accounting

Students also viewed these finance questions