Number of units company must sell in order to break even

Assignment Help Financial Accounting
Reference no: EM131267989

A company sells a product which has a unit sales price of $10, unit variable cost of $2 and total fixed costs of $30,000. Calculate the number of units the company must sell in order to break even.

Reference no: EM131267989

Questions Cloud

Use another method like dividend discount model : Is it possible to solve this question by discounting Free cash flow to equity even ther's no information about a change in debt? Or should I use another method like Dividend discount model? Estimate the value of equity at the end of 1993, and the val..
Estimate of the total maintenance cost for month : Grayson Company's high and low level of activity last year was 7,600 units of product produced in May and 3,600 units produced in November. Machine maintenance costs were $16,200 in May and $12,800 in November. Use the high-low method to determine an..
Obtain a raise or as result of receiving a large raise : Herzberg concluded that pay was not a motivator. If you were paid to get better grades, would you be motivated to study harder? In your employment experiences, have you ever worked harder to obtain a raise or as a result of receiving a large raise? D..
Establish the taxable income under the formula approach : In January of 2013, SLU of Tampa created a simple trust. This simple trust received interest income in an amount of $4,500 on October 6th of 2016. According to the IRS, this interest income qualified as tax exempt. SLU of Tampa invested $100,000 in l..
Number of units company must sell in order to break even : A company sells a product which has a unit sales price of $10, unit variable cost of $2 and total fixed costs of $30,000. Calculate the number of units the company must sell in order to break even.
Sales does the company need to break even per year : Porter Wines has fixed costs of $46,000 per year. Its warehouse sells wine with variable costs of 80% of its unit selling price. How much in sales does the company need to break even per year?
How much will the total contribution margin : Brad's Breads can produce and sell only one of the following two products: Oven Hours Required Contribution Margin per Unit Classic Bread 0.3 $4 Premium Bread 0.4 $5 The company has oven capacity of 600 hours. How much will the total contribution mar..
What is the companys degree of operating leverage : Morrison Corporation has sales of $350,000, variable costs of $125,000, and fixed costs of $100,000. What is the company's degree of operating leverage?
What is per unit manufacturing cost under variable costing : Canvas Co. sells its product for $90 per unit. During 2016, it produced 36,000 units and sold 35,000 units (there was no beginning inventory). Costs per unit are: direct materials $30, direct labor $24, and variable overhead $18. Fixed costs are: $43..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Amount of claytons investment in austin

Clayton Inc. purchased 30% of the outstanding common stock of Austin Industries on January 1, 2014, for $180,000. Austin reported net income of $70,000 for 2014 and declared and paid cash dividends on common stock of $30,000. The amount of Clayton's ..

  Financial and managerial accounting

Indicate the term describe, or answer (none ) if the statement does not correctly explain any of the terms.

  The currently dominant floating exchange rate system

There are many possible exchange rate systems that can be employed by nations of the world. What are the advantages and disadvantages of the currently dominant floating exchange rate system? What alternative system(s) might be better suited to manage..

  Shareholders as the annual dividend

Michael's, Inc. just paid $2.55 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.50 percent. If you require a rate of return of 9.7 percent, how much are you willing to pa..

  Compute cost per gallon of liquid cleaner produced in june

The green plant produced 850,000 gallons in June. The plant never has any beginning or ending inventories. Compute the cost per gallon of liquid cleaner produced in June.

  Estimate the new product future sales and profits

Estimate the new product's future sales, profits, and cash flows throughout its five-year life cycle

  Evaluate maxwells minimum net income for tax purposes

Evaluate Maxwells minimum 2013 net income for tax purposes, federal income tax and taxable income.

  Prepare a manufacturing overhead budget report for january

Prepare a monthly flexible manufacturing overhead budget for each increment of 2,000 direct labor hours over the relevant range for the year ending December 31, 2014. Prepare a manufacturing overhead budget report for January.

  Summarize selling-collection activities for reporting period

For each of the three independent situations below, prepare journal entries that summarize the selling and collection activities for the reporting period in order to determine the amount of cash received from customers and to explain the change in ea..

  Evaluate the maximum amount - operating profit

Evaluate the maximum amount that Santos Company can pay for advertising and have an operating profit of 200,000 next year? Show solution.

  Prepare the journal entries to record the development costs

On September 30, 2016, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2017, and the program was available for release on April 30, 2..

  Prepare revenues budget

Nonmanufacturing fixed costs for March equal $32,000. The only variable nonmanufacturing costs are sales commission, equal to 1% of sales revenue.

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