Benson Company reported the following data regarding the product it sells: Sales price 50 Contribution margin...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Benson Company reported the following data regarding the product it sells: Sales price 50 Contribution margin ratio Fixed costs 10% $120,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $45,000, what must the sales be in dollars? In units? c. If the sales price increases to $60 and variable costs do not change, what is the new break-even point in dollars? In units? a. Break-even point in dollars $ 1,200,000 Break-even point in units 24,000 $1,650,000 b. Sales in dollars Sales in units 33,000 c. Break-even point in dollars Break-even point in units Benson Company reported the following data regarding the product it sells: Sales price 50 Contribution margin ratio Fixed costs 10% $120,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $45,000, what must the sales be in dollars? In units? c. If the sales price increases to $60 and variable costs do not change, what is the new break-even point in dollars? In units? a. Break-even point in dollars $ 1,200,000 Break-even point in units 24,000 $1,650,000 b. Sales in dollars Sales in units 33,000 c. Break-even point in dollars Break-even point in units
Expert Answer:
Answer rating: 100% (QA)
The calculations are as shown below Contribution margin per unit Contribution margin ratio Sales per ... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
Posted Date:
Students also viewed these accounting questions
-
Massey Company reported the following data regarding the product it sells: Sales price ........................... $25 Contribution margin ratio .......... 40% Fixed costs...
-
Volodya Company reported the following data regarding the product it sells: Sales price ............ $20 Contribution margin ratio ...... 40% Fixed costs ............ $900,000 Required Use the...
-
Prokina Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $200. Variable costs Manufacturing ......... $60 per unit Selling...
-
Jillian operates a sporting goods store in a rented location at a shopping mall. She is insured under a CGL policy with the following limits: Indicate the dollar amount, if any, that Jillians insurer...
-
The better students at Providence Assessment Center ( see Problem E. 12) have an 80% learning curve and can do a task in 20 minutes after just six times. You would like to weed out the weak students...
-
Water initially at 300 kPa and 0.5 m3/kg is contained in a piston-cylinder device fitted with stops so that the water supports the weight of the piston and the force of the atmosphere. The water is...
-
What is the difference between internal ecological accounting and the other two types of ecological accountingexternal ecological accounting and other ecological accounting?
-
Og is the leader of the surprisingly mathematically advanced, though technologically run-of-the-mill, Calm Waters caveman tribe. He must decide on the number of stone clubs and stone axes to be...
-
Question: Assume perfect capital market conditions. For Game of Function Inc. (GFI), compute the market debt to equity (D/E) ratio, the cost of equity (rE) and the weighted average cost of capital...
-
This problem continues the Draper Consulting, Inc., situation from Problem 2-62 of Chapter 2. Start from the trial balance and the posted T-accounts that Draper Consulting, Inc., prepared at December...
-
Things were getting ugly in the cosmetic departments at Bon- Ton Department stores and something had to be done, fast. Beauty Advisors in their 277 stores were leaving the company at much higher...
-
Madison has decided to lease a new car. The price of the car is $28,675. Determine her monthly lease payment if she obtains a 3 year lease at 2.35% interest. The residual value of the car is $19,500
-
What steps are involved in the process of evaluating marketing performance? Outline control and evaluation for steps for the key performance indicators of content marketing, website enhancement, and...
-
Morphy's is bidding on a special order that would require 780 liters of material W34C. The company already has 640 liters of this raw material in stock that originally cost $8.30 per liter. Material...
-
Dave and Elise are buying a house for $278,500. They will make a minimum 10% down payment, and closing costs will total $5,200. Annual property taxes are $3,650, homeowner's insurance is $825...
-
Caroline earns $52,000 per year and is paid biweekly. She wants to have $1,000,000 in her 401(k) 35 years from now and thinks that her investments can earn 9%. Caroline's employer matches...
-
(d) Consider a straight wire of length 1, and cross sectional area A, carrying a current I, in a uniform magnetic field B. The angle between the direction of current flow and the magnetic field is 0....
-
The financial statements of Eastern Platinum Limited (Eastplats) are presented in Appendix A at the end of this textbook. Instructions (a) Does East plats report any investments on its statement of...
-
One of Naoto Companys major products is a fuel additive designed to improve fuel efficiency and keep engines clean. Naoto, a petrochemical firm, makes and sells 100,000 units of the fuel additive per...
-
Jarrett Company reported the following operating results for two consecutive years. Required Express each income statement component for each of the two years as a percentage of sales. Round...
-
Belmont Company currently produces and sells 7,000 units annually of a product that has a variable cost of $19 per unit and annual fixed costs of $175,000. The company currently earns an $84,000...
-
Ten students are chosen from a statistics class of 25 students. Let X be the number who got an A in the class. In Exercises 1116, determine whether the random variable X has a binomial distribution....
-
In a college with 5000 students, 100 are randomly chosen to complete a survey in which they rate the quality of the cafeteria food. Let X be the number of freshmen who are chosen. Does X have a...
-
= 0.1, t = 10, P(2) In Exercises 918, determine the indicated probability for a Poisson random variable with the given values of and t.
Study smarter with the SolutionInn App