Compute the break-even point in units (number of skates). (Round your answer to the nearest whole...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Compute the break-even point in units (number of skates). (Round your answer to the nearest whole number.) The Harding Company manufactures skates. The company's income statement for 20X1 is as follows: HARDING COMPANY Income Statement For the Year Ended December 31, 20X1 Sales (12,500 skates @ $100 each) Variable costs (12,500 skates at $45) Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (20%) Earnings after taxes (EAT) $ 1,250,000 562,500 400,000 $ $ $ 287,500 72,500 215,000 43,000 172,000 Compute the break-even point in units (number of skates). (Round your answer to the nearest whole number.) The Harding Company manufactures skates. The company's income statement for 20X1 is as follows: HARDING COMPANY Income Statement For the Year Ended December 31, 20X1 Sales (12,500 skates @ $100 each) Variable costs (12,500 skates at $45) Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (20%) Earnings after taxes (EAT) $ 1,250,000 562,500 400,000 $ $ $ 287,500 72,500 215,000 43,000 172,000
Expert Answer:
Answer rating: 100% (QA)
SOLUTION The breakeven point is the level of sales at which the company earns zero profit ie the lev... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259277160
16th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
Posted Date:
Students also viewed these finance questions
-
The Harding Company manufactures skates. The company's income statement for 20X1 is as follows: HARDING COMPANY Income Statement For the Year Ended December 31, 20X1 Sales (10,500 skates @ $60...
-
The normalized earnings after tax for FAMCO is closest to A. $32,940,000. B. $34,260,000. C. $34,860,000. The senior vice president of acquisitions for Northland Industries, Angela Lanton, and her...
-
The guideline transaction that is most likely applicable to FAMCO is A. Firm 1. B. Firm 2. C. Firm 3. The senior vice president of acquisitions for Northland Industries, Angela Lanton, and her head...
-
Find the frequency domain current I0 as shown. j1 Io 2
-
The financial statements of Zetar plc are presented in Appendix C. The companys complete annual report, including the notes to its financial statements, Instructions Identify five differences in the...
-
Sinclair Manufacturing and Boswell Brothers Inc. are both involved in the production of tile for the home-building industry. Their financial information is as follows: Capital Structure Sinclair...
-
A mass, connected to a damper as shown in Fig. 14.30, is subjected to a force \(F(t)\). Find the frequency-response function \(H(\omega)\) for the velocity of the mass. m F(t) y(1) FIGURE 14.30...
-
Google has changed its strategy with regard to how much and over which media it invests in advertising. The following table shows Googles marketing budget in millions of dollars for 2008 and 2011...
-
Jim and Kay Ross contributed to the support of their two children, Dale and Kim, and Jim's widowed parent, Grant. For 2022, Dale, a 19-year-old, full-time college student, earned $6,550 as a...
-
This unadjusted trial balance is for Challenger Construction at the end of its fiscal year, September 30, 2023. The beginning balance of the owners capital account was $46,000 and the owner invested...
-
w is complex cube root of unity. so, Find the value of (1+ w-w^2 )?
-
When asked whether they would take full-time gig work over a traditional job, 53 percent of Generation Z (born 19972012) respondents in a global study said yes. Commissioned by the Workforce...
-
Lexie Tsuneshi has the right idea in sending a follow-up message after her interview for a marketing coordinator position in Bloomington, Indiana. However, her message could be more effective. Your...
-
You represented your company at the AeroDef Manufacturing Conference, the nations premier aerospace and defense manufacturing conference and trade show, in Fort Worth, Texas. Your supervisor asked...
-
During a job interview, Cheryl was startled to be asked to provide her password and login credentials for her social media accounts. Is this request legal and ethical?
-
Name specific advantages and disadvantages of multimedia presentation software such as PowerPoint, Apple Keynote, and Prezi.
-
Consider another widely diversified portfolio, N, with factor loadings b N1 = 0.4, b N2 = 1.2. Replicate N by a portfolio mix of L, M and G. What is the equilibrium mean rate of return of portfolio N?
-
What will be the final value of DI after executing the following piece of code? Execute the instructions dependently one after another. CLD MOU CX,OFOH MOU AX.02874H MOU DI,01000H MOU ES, DI SUB...
-
Mansfield Corporation had 20X1 sales of $100 million. The balance sheet items that vary directly with sales and the profit margin are as follows: ..................................Percent...
-
Name the departments, offices, or agencies that were created by the Dodd-Frank legislation.
-
Stilley Corporation had earnings after taxes of $436,000 in 20X2 with 200,000 shares outstanding. The stock price was $42.00. In 20X3, earnings after taxes declined to $206,000 with the same 200,000...
-
Describe which characteristics of HR metrics and workforce analytics are likely to result in greater return on investment and organizational impact.
-
Why are information security and privacy important considerations in the design, development, and maintenance of an HRIS?
-
List and discuss the major information security and privacy threats to organizations.
Study smarter with the SolutionInn App