Question: Selling price per unit=$16 Variable cost per unit=$10 Fixed cost=$90,000 Find out: (1). Break even sales units and value (2). Profit when sales would be

Selling price per unit=$16

Variable cost per unit=$10

Fixed cost=$90,000

Find out:

(1). Break even sales units and value

(2). Profit when sales would be $420,000

(3). Margin of safety when sales are as in (2)

Step by Step Solution

★★★★★

3.47 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Solution 1 Break even point in unitsFixed costCotribu... 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:

Sales and selling price per unit Historical sales for 2012 the two products are shown below. Harveys sales typically peak in the summer months, beginning with May. Harveys general manager, Mr....

Q:

Number of units sold 55000, Selling price per unit Tk.80, Variable selling expense per unit Tk.13, Variable administrative expense per unit Tk.11, Fixed selling expense Tk.540000, Fixed...

Q:

need help to solve Bramble Company manufactures and sells three products. Relevant per unit data concerning each product are given below. A B C Selling price $9 $13 $16 Variable costs and expenses $6...

Q:

Accounting and Financial Management CAPRI LIMITED: PERFORMANCE EVALUATION AND PLANNING For many years Capri Limited has delivered on its quality products promise to consumers, ensuring continued...

Q:

Accounting and Financial Management CAPRI LIMITED: PERFORMANCE EVALUATION AND PLANNING For many years Capri Limited has delivered on its quality products promise to consumers, ensuring continued...

Q:

Accounting and Financial Management CAPRI LIMITED: PERFORMANCE EVALUATION AND PLANNING For many years Capri Limited has delivered on its quality products promise to consumers, ensuring continued...

Q:

A manufacturer produces a product at thre e plants and distributes it through four market - service warehouses. The following data have been provided: Warehouse Selling Price Annual Demand Plant...

Q:

1.A firm has sales for the year of RM92,000, costs of RM46,000 and an annual depreciation of RM40,000. If the tax rate of 26 percent, calculate the operating cash flow for the year. 2.Mamamia Berhad...

Q:

Division A makes a part with the following characteristics Production capacity in units Selling price to outside customers Variable cost per unit Total fixed costs 30,600 units $ 20 $ 13 $ 109,000...

Q:

A pair of narrow, parallel slits separated by 0.250 mm is illuminated by the green component from a mercury vapor lamp ( = 546.1 nm). The interference pattern is observed on a screen 1.20 m from the...

Q:

George and Jane are thinking of introducing three reservation packages: Standard, Deluxe and Premium. Guests who choose a Deluxe package would be entitles to a free breakfast and have priority access...

Q:

LarCalc 1 2 8 . 2 . 0 6 3 . Find the indefinite integral by using substitution followed by integration by parts. ( Remember the constant of integration. ) 1 4 s i n ( 1 4 x 2 ) d x

Q:

Johnson Corporation began 2013 with inventory of 10,000 units of its only product. The units cost $8 each. The company uses a periodic inventory system and the LIFO cost method. The following...

Q:

Lois purchased the following blocks of Westgate Stock: Lois sold 1,600 shares of the stock on November 20, 2014, for $5.00 per share for a total of $8,000. Using the first-in, first-out method, what...

Q:

Justin Cement Company has had the following pattern of earnings per share over the last five years: YearEarnings per Share 2006 ............. $5.00 2007 ............5.30 2008 ............5.62 2009...

Q:

Respond to the following independent situations: a. Jacob is a single taxpayer who has net investment income consisting of $10,000 interest on a certificate of deposit, $5,000 from dividends from a...

Q:

For each of the following, compute the present value: Future Value Interest Rate Years 15 13 25 Present Value S 17,328 41,517 790,382 647,816 4% 12

Q:

Qualitative research questions seek to understand or explain. Group of answer choices (a) True (b) False

Q:

Alpha Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Price and cost data for a relevant range extending to 200,000 units per month are...

Q:

Essence of Persia, Inc., began operations on January 1, 2010. The company produces a hand and body lotion in an eight-ounce bottle called Eternal Beauty. The lotion is sold wholesale in 12-bottle...

Q:

Mendel Paper Company produces four basic paper product lines at one of its plants: computer paper, napkins, place mats, and poster board. Materials and operations vary according to the line of...

Q:

Whirlwind Industries is a multiproduct company with several manufacturing plants. The Brownwood Plant manufactures and distributes two carpet cleaning products, Household and Commercial, under the...

Q:

Continental Industries is a diversified corporation with separate operating divisions. Each divisions performance is evaluated on the basis of profit and return on investment. The Air Comfort...

Q:

The following information relates to Mere's budget for the year to 31 December 2012: Fixed overheads are apportioned on the basis of direct labour hours. The directors are worried about the loss that...