Question: Please write down clear explanations 2. Adams Company sells a single product. The product sells for $100 per unit. The company's variable expenses are 80%

Please write down clear explanations

2. Adams Company sells a single product. The product sells for $100 per unit. The company's variable expenses are 80% of sales and its fixed expenses total $150,000 per year. (5 marks) Part (a) What is the company's contribution margin ratio? Part (b) What is the company's break-even point? (Give answer in dollars and in units.)

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 Accounting Questions!

r1 (Q) 7 CVP 1. AB Company sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% and xed expenses do not change= then: (a) How would...

Sunn Company manufactures a single product that sells for $100 per unit and whose variable costs are $76 per unit. The company's annsal fixed costs are $338,400 (1) Prepare a contribution margin...

Sunn Company manufactures a single product that sells for $100 per unit and whose variable costs are $76 per unit. The company's annual fixed costs are $338,400. (1) Prepare a contribution margin...

i need answer for both question Sunn Company manufactures a single product that sells for $100 per unit and whose variable costs are $76 per unit. The company's annual fixed costs are $338,400....

see the attached file H. Xue Managerial Accounting 2015 Spring Homework 1 (Individual Assignment, Due on 02/11) 1. Das Doors Inc. has recorded the following costs at various volumes of production:...

1. TC Company makes several printing works using two machines (X and Y). Data on the two machines for June 2010 are as follows: X Y Direct material 10 15 Time required for each unit (TR) 2 3 Expected...

Question 2 (1 point) Marston Enterprises sells three chemicals: petrol, septine, and tridol. Petrol's unit contribution margin is higher than septine's, which is higher than tridol's. Which one of...

Bloom Company predicts it will incur fixed costs of $261,000 and earn income of $393,900 in the next period. Its expected contribution margin ratio is 59%. 1. Compute the amount of expected total...

This is all one big question, according to chegg policy you have to answer the whole thing since its one all one question The contribution margin is viewed as a better gauge of the long run...

Sunn Company manufactures a single product that sells for $ 1 1 0 per unit and whose variable costs are $ 8 8 per unit. The company's annual fixed costs are $ 3 0 8 , 0 0 0 . ( 1 ) Prepare a...

Below are the comparative Statement of Comprehensive Income and Statement of Financial Position of Elen Company and Melanie Company: Net Sales Cost of Goods Sold Selling Expenses General and...

Draw the shear and bending-moment diagrams for the beam AB, and determine the maximum absolute values of the shear and bending moment. 600 mm , 600 mm , 600 mm 600 N 600 N G00 N 600 mm 600 mm 300 mm...

E 1 6 - 2 6 Net operating loss carryback and carryforward; financial statement effects 2 LO 1 6 - 7 [ This exercise is based on the situation described in E 1 6 - 2 5 , modified to include a...

Employee turnover _ _ _ _ _ _ _ .

Describe a typical grievance process and explain the basis for arbitration awards.

Describe the bargaining process and the bargaining goals and strategies of a union and an employer.

List the forms of bargaining power that a union and an employer may utilize to enforce their bargaining demands.