Widget Co. produces widgets for customers. The company has provided the following financial information for the...
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Widget Co. produces widgets for customers. The company has provided the following financial information for the past year: Product Selling price per unit Sales Quantity Variable cost per unit Fixed costs Widgets $8.00 550,000 $3.00 $65,000 Do not enter dollar signs or commas in the input boxes. Round breakeven units up to the nearest whole number. Round breakeven sales to the nearest whole number. a) Calculate break-even units and break-even sales. Breakeven units = Breakeven sales = $ b) Suppose the company would like to generate an operating profit of $5,000. Determine the revenue that is needed to obtain this target, and calculate the number of units that need to be produced to meet this goal. Breakeven units = Breakeven sales = $ c) Suppose the company decides to lower the selling price from $8.00 per unit to $7.50 per unit. Calculate break-even units and break-even sales. Breakeven units = Breakeven sales = $ d) Suppose that fixed costs drop to $50,000 from $65,000. Calculate break-even units and break-even sales. Breakeven units = Breakeven sales = $ Widget Co. produces widgets for customers. The company has provided the following financial information for the past year: Product Selling price per unit Sales Quantity Variable cost per unit Fixed costs Widgets $8.00 550,000 $3.00 $65,000 Do not enter dollar signs or commas in the input boxes. Round breakeven units up to the nearest whole number. Round breakeven sales to the nearest whole number. a) Calculate break-even units and break-even sales. Breakeven units = Breakeven sales = $ b) Suppose the company would like to generate an operating profit of $5,000. Determine the revenue that is needed to obtain this target, and calculate the number of units that need to be produced to meet this goal. Breakeven units = Breakeven sales = $ c) Suppose the company decides to lower the selling price from $8.00 per unit to $7.50 per unit. Calculate break-even units and break-even sales. Breakeven units = Breakeven sales = $ d) Suppose that fixed costs drop to $50,000 from $65,000. Calculate break-even units and break-even sales. Breakeven units = Breakeven sales = $
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Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118856994
4th Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
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