Compute the current break-even sales

Assignment Help Financial Accounting
Reference no: EM13788006

Break-Even Sales

Currently, the unit selling price of a product is $390, the unit variable cost is $320, and the total fixed costs are $1,008,000. A proposal is being evaluated to increase the unit selling price to $440.

a. Compute the current break-even sales (units).

Answer: ________ units

b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.

Answer: ________ units

Reference no: EM13788006

Questions Cloud

Beginning cash balance-payments on merchandise purchases : Use the following information to prepare the July cash budget for Acco Co. It should show expected cash receipts and cash disbursements for the month and the cash balance expected on July 31. Payments on merchandise purchases: 60% in the month of pur..
Current portion of mortgage payable : The monthly payment on a 1,000,000 15 yr. mortgage at 6% is 8,438.57 per month. How much of that 1,000,000 on day 1 is deemed to be "current portion of mortgage payable"?
Regarding activity based costing : The following information was provided by a client to you regarding Activity Based Costing (ABC). The client is very happy that you have just taken ACCT& 203 at TCC and that you have a thorough understanding of ABC Costing. Check ALL that apply below..
Under the new revenue recognition principle ifrs : On January 1, 2014, Gordon Co. enters into a contract to sell a customer a wiring base and shelving unit that sits on the base in exchange or $3,000. The contract requires delivery of the base first but states that payment for the base will not be ma..
Compute the current break-even sales : Currently, the unit selling price of a product is $390, the unit variable cost is $320, and the total fixed costs are $1,008,000. A proposal is being evaluated to increase the unit selling price to $440. Compute the current break-even sales
Target costing : Oregon Equipment Company wants to develop a new log-splitting machine for rural homeowners. Market research has determined that the company could sell 5,000 log-splitting machines per year at a retail price of $700 each. An independent catalog compan..
Product pricing-two products : Quality Data manufactures two products, CDs and DVDs, both on the same assembly lines and packaged 10 disks per pack. The predicted sales are 400,000 packs of CDs and 500,000 packs of DVDs. What price should Quality Data charge for each disk pack if ..
Cost-based pricing and markups with variable costs : Jeny is studying Finance at University. To complete the Finance degree she has to take a basic income tax course. Because Jeny does not intend to be a tax expert she considers the course to be a waste of his time. What is the markup on variable costs..
Equivalent units of conversion costs : The Bottling Department of Rocky Springs Beverage Company had 3,600 ounces in beginning work in process inventory (80% complete). During the period, 30,100 ounces were completed. The ending work in process inventory was 1,800 ounces (50% complete). W..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Discuss how you could overcome that challenge

Identify a challenge in designing a new chart of account in Peachtree Complete Accounting if the person has limited accounting knowledge and discuss how you could overcome that challenge

  Show diversity for a multinational corporation

What are the main problems caused by worldwide accounting diversity for a multinational corporation?

  What will the firm operating profit be at sales

If a firm has a break-even point of 40,000 units and the contribution margin on the firm's single product is $4.00 per unit and fixed costs are $60,000, what will the firm's operating profit be at sales of 30,000 units?

  Price-earnings ratio computation and interpretation

Prepare journal entries to record (a) the issuance of bonds on Jan. 1, 2011; (b) the first interest payment on June 30, 2011; and (c) the second interest payment on Dec. 31, 2011.

  How the amounts related to accounts receivable and bad debt

In one year, a company had $30,000 Sales Revenue on credit. At the start of the year, the Accounts Receivable showed a $6,000 debit balance and the Allowance for Doubtful Accounts showed a $400 credit balance.

  Four basic financial statements for suliman

Write a short report describing each of the four basic financial statements for Suliman.  Make sure you are clear about the purpose for each statement and its contents.

  Calculate the mix and quantity variance for data

Calculate the mix and quantity variance for data

  The following information is provided by sino ltdfor the

the following information is provided by sino ltdfor the year ended 30 june 2010 sino ltd earned profit of 8000000

  Find the unit product cost of each product

Assume that the company decides to use activity-based costing to apply overhead cost to products. Find the unit product cost of each product.

  How will the following accounts be impacted

The corporation, Joe's Discount Furniture, recorded sales for the month of May, 2001 amounting to $200,000. Sixty percent(60%) of these sales were on account. As a result of this transaction, how will the following accounts be impacted?

  What is their yield to maturity

Ezzell Enterprises' noncallable bonds currently sell for $1,165. They have a 15-year maturity, an annual coupon of $95, and a par value of $1,000. What is their yield to maturity?

  Use the horizontal model

Kirkland Theater sells season tickets for six events at a price of $252. For the 2010 season, 1,200 season tickets were sold.

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