Wesley Company manufactures and sells a single product. The company's Income statement at sales level of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Wesley Company manufactures and sells a single product. The company's Income statement at sales level of 30,000 units for last quarter follows: Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income Break-even point in units sold Break-even point in sales dollars Required: 1. What is the monthly break-even point in units sold and in sales dollars? (Round your Intermediate calculations and final answers to the nearest whole number) Total contribution margin Total $1,200,000 840,000 360,000 2. Without resorting to computations, calculate the total contribution margin at the break-even point for the quarter. Units sold to attain target profit 66.968 3-a. How many units would have to be sold each quarter to earn a target profit of $24,000? Use the formula method. Sales Break-even Point 5 3-b. Verify your answer by preparing a contribution format Income statement at the target level of sales. Total 317,040 317,040 Unit Wesley Company manufactures and sells a single product. The company's Income statement at sales level of 30,000 units for last quarter follows: Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income Break-even point in units sold Break-even point in sales dollars Required: 1. What is the monthly break-even point in units sold and in sales dollars? (Round your Intermediate calculations and final answers to the nearest whole number) Total contribution margin Total $1,200,000 840,000 360,000 2. Without resorting to computations, calculate the total contribution margin at the break-even point for the quarter. Units sold to attain target profit 66.968 3-a. How many units would have to be sold each quarter to earn a target profit of $24,000? Use the formula method. Sales Break-even Point 5 3-b. Verify your answer by preparing a contribution format Income statement at the target level of sales. Total 317,040 317,040 Unit
Expert Answer:
Answer rating: 100% (QA)
The breakeven point can be calculated in units sold or in sales dollars Breakeven point in units sold The breakeven point in units sold is the number ... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these human resource management questions
-
Two players have completed a game. Write a method (or function) named whoWon to determine the winner! whoWon receives three parameters in the following order: the score of the first player as an int,...
-
HTML tags are just instructions to the Web browser. True False
-
Which of the following in not a function of DBA? A. Network Maintenance B. Routine Maintenance C. Schema Definition D. Authorization for data access
-
In your opinion, which presents results more fairly, finance or accounting? Explain.
-
Determine the order of magnitude for method 1 implemented in java as below. This method sorts an array of integers in a descending order. Unlike the previous question, you do not need to count the...
-
The number of books per shelf in a library (a) find the mean, variance, and standard deviation of the probability distribution, (b) interpret the results. Books 0 1 2 3 4 5 Probability 0.002 0.018...
-
1. In what ways is Carlos Ghosn a visionary leader? What traits does he possess that are typical of a visionary leader? 2. What is the nature of Nissans international strategy? Is the firms strategy...
-
The Tuck Corporation pays annual dividends of P6.00 on the cumulative preferred stock. What is the current value of this stock if an investor requires a 10 percent annual rate of return?
-
P1. The comparative statements of Coyote Company are presented here. Coyote Company Income Statements For the Years Ended December 31 (unit= $) 2021 2020 Net sales $2,200,000 $2,000,000 Cost of goods...
-
What is meant by the terms income inequality and income distribution?
-
Can two countries gain from trade if the opportunity cost ratios relating to the production of goods they can both produce is the same? Explain.
-
Why is technological progress important in improving growth rates in any economy?
-
Why is an understanding of belief systems important in assessing approaches to dealing with poverty and inequality?
-
What is the steady-state equilibrium?
-
In the following SAS output table for Type I type of Sum of Squares, compute SSR (X2, X3|X1), where the total sum of squares is 17.0. Pick the correct answer. Source -I SS X1 X2 X3 1.1 2.3 3.5 10.1 O...
-
On March 31, 2018, Gardner Corporation received authorization to issue $30,000 of 9 percent, 30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue was dated...
-
The Midwest Consulting Group (MCG) helps companies build balanced scorecards. As part of its marketing efforts, MCG conducts an annual balanced scorecard workshop for prospective clients. As MCGs...
-
Last month when Harrison Creations, Inc., sold 40,000 units, total sales were $300,000, total variable expenses were $240,000, and total fixed expenses were $45,000. Required: 1. What is the companys...
-
Describe what is meant by a pull production system.
-
Solve Example 7.5 with equilibrium energy as the initial condition for the Oxygen molecule at 1 atmosphere and \(3200 \mathrm{~K}\). Example 7.5 Obtain the time dependent expression for the vibration...
-
Obtain a pseudo tri-diagonal matrix equation to solve the vorticity transport equation in a boundary layer with forward differencing in time and with appropriate differencing in space suitable for...
-
If the waverider of the Problem 7.44 has the wall temperature of \(1400 \mathrm{~K}\) and \(\operatorname{Re}=1.371 \times 10^{6}\) with respect to its length then find the drag coefficient with...
Study smarter with the SolutionInn App