Question: Compute Break-Even Point at the operating profit level : Q = Fixed Costs / Contribution Margin per Unit Ensco Lighting Company has fixed costs of

Compute Break-Even Point at the operating profit level:

Q = Fixed Costs / Contribution Margin per Unit

Ensco Lighting Company has fixed costs of $100,000, sells its units for $28 and has variable costs of $15.50 per unit.

Compute the breakeven point.

Ms. Watts comes up with a new plan to cut fixed costs to $75,000. However, more labor will now be required, which will increase variable costs per unit to $17. The sales price will remain at $28. What is the new breakeven point Was the new plan a success.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock 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

Students Have Also Explored These Related Finance Questions!

Propose structures for compounds that meet the following descriptions: (a) C5H8, with IR absorptions at 3300 and 2150 cm1 (b) C4H80, with a strong IR absorption at 3400 cm1 (c) C4H80, with a strong...

Score: 0 of 2 pts 2 of 7 (1 complete) HW Score: 10 % , 1 of - E3-28 (similar to) Question Help True You Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans...

Donaldson Company manufactures and sols a argic product. The company's sales and cxpenses for last year folk Click the icon to view the information Read the recuirements a. What is the breskever port...

Problem 4-20 Sales Mix; Multi-Product Break-Even Analysis [LO9] Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells three products-sinks, mirrors,...

Classical Accessories operates a kiosk at the local mall, selling cell phone covers for $ 2 8 each. Classical Accessories currently pays $ 1 comma 9 6 0 a month to rent the space and pays two full -...

Just for You Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of 536 with $25 in variable costs of goods sold. The company has fixed...

Sherry's Custom Jewelry sells a single product. 700 units were sold resulting in Php7,000 of sales revenue, Php2,800 of variable costs, and Php1,200 of fixed costs. Contribution margin per unit is O...

I need help in these questions Please do them fast. Please I have only 30 minutes Question 26 3.4 p Answer the following questions using the information below. Michael LLC sells a single product. 700...

I need help trying to solve this problem. I am having problems trying to solve it. Just for You Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a...

Would you please solve the questions? Thanks! Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. (Hint: One way to find the missing...

Questions 2-8 Final Examination Acct221: Principles of Accounting II For this exam, omit all general journal entry explanations. Ensure to include correct dollar signs, underlines & double...

Consider the multifactorial APT with two factors. The risk premiums of factor 1 and factor 2 portfolios are respectively 5% and 3%. Stock A has a beta of 1.4 at factor 1, and a beta of 0.5 in factor...

a. Find the variance for this population of x scores: 5,10, 15. (See Section 2-5 for the variance 2 of a population.) b. Find the variance for this population of y scores: 1, 2, 3. c. List the...

Gross Income ( GI ) is of particular importance as it impacts your eligibility for various tax credits and exemptions. These include: The child and dependent care credit Elderly and permanently...

An oil with a viscosity of u = 0.40 N-s/m? and a density of p = 900 kg/m flows in a pipe of diameter D = 0.020 m. (a) What pressure drop, P.- PL is needed to produce a flowrate of Q = 2.0 x 10 m'/s...

You are considering the purchase of a small office building in Brooklyn. The property contains 20,000 square feet of rentable space and is currently occupied by multiple tenants each with differing...

Question: Kelson Sporting Equipment, Inc., makes two different types of baseball gloves; a regular model and a catcher\'s model. The firm has 900 hours of production time available in its cutting and...

Three capacitors of capacitance 9, 3, and F respectively, are connected in series to a 6 V battery. What is the charge on the positive plate of the 3 F capacitor?

Assume you are going to estimate a linear regression based on the following data. 7 Advertising Expenditure 3 5 6 3.5 4 4.5 7 7.5 8.5 ($'000s) Sales 50 250 700 450 75 150 200 750 800 1100 ($'000s) a....

Micromedia offers computer training seminars on a variety of topics. In the seminars each student works at a personal computer, practicing the particular activity that the instructor is presenting....

2. Benoit Vincent was able to become a more effective manager after completion of certain personality profile instruments (the MBTI for example), participating in a series of one-on-one workplace...

2. To learn more about the way you handle anger, record your anger responses in a journal for a period of five days. When anger surfaces, record as many details as possible. What triggered your...

3. To learn more about how emotions influence your thinking and behavior, complete each of the following sentences. Once you have completed them all, reflect on your written responses.