Compute the break-even point

Assignment Help Accounting Basics
Reference no: EM13124606

In August, Gold Company sold 770 units of their only product. For the month, fixed costs were $10,400, variable costs were 57% of sales, and the average sales price was $62.

(a) Determine the contribution margin in dollars per unit and as a ratio.

(b) Compute the break-even point in dollars and in units.

Reference no: EM13124606

Questions Cloud

Framing linear equations : Flying with the jetstream, the same jet travels 4600km in 4 hours. What is the speed of the jet in still air, and what is the speed of the jetstream?
Probability to not buy again from same manufacturer : The mean life of your sample were more than 780 hours. What is the probability that you will not buy again from this manufacturer?
What is the true formula of the compound : 0.158g of a barium halide is completely precipitated out of H2SO4 and 0.124g of barium sulfate are produced. what is the true formula of the compound.
Building a network wireless for the company : Identify 6 potential risks for this project and write the risk register for all of them. Ensure one of your risks is a positive risk and construct the Probability/ Impact Matrix for those 6 potential risks.
Compute the break-even point : In August, Gold Company sold 770 units of their only product. For the month, fixed costs were $10,400, variable costs were 57% of sales, and the average sales price was $62.
Is it reasonable to conclude percent is less than five year : Total housing costs as a percent of monthly income, five years ago and now. The information is reported below. Is it reasonable to conclude the percent is less now than five years ago?
What is the chlorine ion concentration : A stock solution is prepared by adding 25 mL of 2.2 M AlCl3 to enough water to make 75 mL. What is the Cl- concentration of 25 mL of the stock solution.
Determining matrices and equations : What does the final row of the augmented matrix in echelon form (the above description) tell you about the solution to the system of 5 linear equations?
Determine the empirical formula of the compound : A 1.000 g sample of a compound containing C, H and O is burned in excess oxygen, producing 1.783 g CO2 and 0.734 g H2O. Determine the empirical formula of the compound.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Journal entry for property taxes and allowance

Prepare a journal entry for the taxes of Winston County's General Fund on July 1, 2005, the date on which the property taxes for the fiscal ending June 30, 2006, were billed to taxpayers.

  Fundamental accounting principles

The ledger of Salizar Company at the end of the current year shows Accounts Receivable $110,000, Sales $840,000, and Sales Returns and Allowances $40,000.

  Compute the materials price variance

(a) Compute the actual cost per foot for materials for March. (b) Compute the materials price variance and a total variance for materials.

  Show computations to value the ending inventory

Show computations to value the ending inventory using the weighted-average cost method if 550 units remain on hand at October 31.

  Conditions for cash dividend payment

Why must preferred stock dividends be subtracted from net income in computing earnings per share? Why is common stock usually not issued at a price that is less than par value?

  What must be the amount of quarterly lease payments

Manning Imports is contemplating an agreement to lease equipment to a customer for five years. Manning normally sells the asset for a cash price of $100,000. Assuming that 8% is a reasonable rate of interest.

  Specific labour and overhead costs

What specific labour and overhead costs would be incurred, both before and after the split off point? Again, be specific here in terms of what you think would need to be incurred.

  Equity method of accounting to fair value method

Compare the equity technique of accounting to the fair value technique for equity securities. In what cases would you employ each?

  What are the elements of negligence

What are the elements of negligence? How does an intentional tort differ from negligence? Provide examples. How does the strict liability doctrine apply to the practice of accounting? Provide examples.

  Asset turnover profit margin-target rate of return

Innovative Furnishing Solutions (IFS) a division of Steelman Corporation: Asset turnover Profit margin, Target rate of return on investments for RI, Cost of capital and other operational data, to compute the segment margin and the average assets f..

  Performance reporting-flexible budgeting

Analyze the budget variance by calculating the direct labor efficiency and rate variances for June. What alternatives to the preceding monthly report could improve control over the stamping department's direct labor?

  Short run and long run equilibrium in fishing rod market

How would you predict that the short-run equilibrium that you have identified in question 1 will change? Illustrate your answer using appropriate diagrams. What will be the long-run equilibrium number of fishing rod manufacturers?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd