Question: Fixed overhead=$250,000 Variable cost per unit=$20 Selling price per unit=$40 Find out: (a).Break-even sales in unit (b).If the selling price is reduced by 10%,what will


Fixed overhead=$250,000

Variable cost per unit=$20

Selling price per unit=$40


Find out:

(a).Break-even sales in unit

(b).If the selling price is reduced by 10%,what will be the new Break Even Point?


Step by Step Solution

★★★★★

3.41 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Solution aBreakeven sales in unitFixed costContribution per unit 25000020 12500 ... View full answer

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 Accounting Questions!

Q:

Selling price per unit $750 Variable cost per unit $450 Annual fixed cost $180,000 Net income after tax $360,000 Tax rate 25% 1)Reduce the selling price by $60. The sales team forecast that with a...

Q:

Fixed costs are 5,000. Variable cost per unit is 3 and the unit selling price is 5.50. What is the break-even volume of sales?

Q:

The variable cost per unit varies with output, whereas the fixed cost per unit is constant." Do you agree? Explain.

Q:

TEST I: Multiple Choice 40 points 1. How may the following be used in calculating the break-even point in units? Fixed Costs CM per unit Fixed Cost CM per unit a. Denominator Numerator c. Numerator...

Q:

Stocking Stuff, Inc. purchases raw materials ( stockings and candy ) and converts those to finished goods ( stuffed stockings ) . The company uses a Just - In - Time inventory management system for...

Q:

Need help with these two Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Selling Price Variable Cost Product per Unit per Unit...

Q:

Question 1 (1 point) Which of the following statements describes Black Fly's process costing system? Question 1 options: Direct materials and direct labour are traced to each specific order. The...

Q:

I need help with solving the following questions below it will be helpful: Class exercise - Cost-Volume-Profit Relationships (2 marks) Information regarding a product manufactured and sold by...

Q:

Solve the following questions. Isa Manufacturing Company's budget for the coming year revealed the following unit data Budgeted net income for the year - P875,000 Unit Costs: Variable Fixed...

Q:

Question 1 1 pts Tippy Canoe Company needs to calculate their contribution margin per fiberglass canoe. If their fixed costs total $2,500, variable cost per canoe is $50 and they sell each one for...

Q:

Assume you plan to have $1,000,000 in your 401(K) when you retire, and you will live 20 years after retirement. How much will be your monthly distribution if you can earn 14% a year (Hit: monthly...

Q:

Assume that you are charged with developing an application to record basketball performance statistics. What limits would you include to ensure that the information entered is reasonable?

Q:

What is the IRS - established depreciation schedule for a single - family home? ( a ) 2 7 . 5 years ( b ) 3 9 . 0 years ( c ) 3 9 . 5 years ( d ) 5 0 . 0 years

Q:

Mott Company has a line of credit with Bay Bank. Mott can borrow up to $400,000 at any time over the course of the 2018 calendar year. The following table shows the prime rate expressed as an annual...

Q:

Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.65 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each companys stock...

Q:

For each of the following independent transactions, determine the amount of net income or loss for tax purposes and the taxpayer to which it applies. 1. A woman purchased a $10,000 bond for her...

Q:

Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $180,000 in additional credit sales, 12 percent are likely to be...

Q:

The 2017 audit of Lane Companys accounting records discloses the following information: Required: 1. Reconstruct the journal entries that were made by Lane during 2017 to record changes in the...

Q:

Analyzing this relationship among these variables is crucial for several reasons. Firstly, it allows for the enhancement of safety measures within the aviation industry. By identifying specific...

Q:

The Ottawa Valley Instrument Company (OVIC) consists of the Semiconductor Division and the Process-Control Division, each of which operates as an independent profit centre. The Semiconductor Division...

Q:

Carumba Inc.s 2012 budget includes the following items: Sales............80,000 units Production.........80,000 units Direct materials used....... $600,000 Direct labour........ 400,000 Variable...

Q:

Comment on the following statement made by a plant supervisor: Meetings with my plant accountant are frustrating. All he wants to do is pin the blame for the many variances he reports.

Q:

Are you like Joyce Jensen in that you do not feel safe walking in your neighborhood at night? How much television do you watch? Do you fit the profile offered by Cultivation Analysis? Why or why not?

Q:

Do you believe that the world is a mean place? What real-world evidence do you have that it is? What television evidence do you have that it is?

Q:

British Cultural Studies is strongly focused on class differences. What do you think about applying the thinking of British Cultural Studies to Cultural Studies in North America? Do you believe that...