Break-even point in units, Accounting Basics

The Braggs & Struttin' Company produces an engine for carpet cleaners called the "Snooper." Budgeted cost and revenue data for the "Snooper" are given below, depends on sales of 40,000 units.

 

Sales                                      $1,600,000.

Less: COGS                              1,120,000.

Gross margin:                             $480,000.

Less: Operating expenses             100,000.

Income:                                      $380,000.

 

Cost of goods sold having of $810,000 of variable costs and $310,000 of fixed costs. Operating expenses having of $30,000 of variable costs and $70,000 of fixed costs.

Required:

A. Determine the break-even point in units and sales dollars.

B. Determine the safety margin (in dollars).

 

Posted Date: 3/22/2013 6:30:39 AM | Location : United States







Related Discussions:- Break-even point in units, Assignment Help, Ask Question on Break-even point in units, Get Answer, Expert's Help, Break-even point in units Discussions

Write discussion on Break-even point in units
Your posts are moderated
Related Questions
Some the other concepts, as for example: the Matching concept, the Dual Aspect concept and the Realization concept are discussed in further sections, and as they have not been take

Q. Define the Opportunity cost? Opportunity cost -- a useful notion in evaluating alternate opportunities. If you choosealternative A, you can't choose B, C, or D. What is the

Governmental agencies at the state, federal, and local levels employ governmental accountants. Habitually the duties of these accountants relate to tax revenues and expenditures. F

A bank statement showed an overdraft of $750. A cheque issued in payment of rent for $570 had not been presented, and a cheque for $624 received was omitted from the statement. The


what is the BRS

Determine the terms of Recording sales of merchandise The SALES ACCOUNT is a temporary account with a normal credit balance. It's ONLY used to record sale of merchandise on

dividend received rs 100was posted to debit to dividend account. the rectification entry n will be what?

ledger is said to be the principal book entry and the transactions can even be directly entered into the ledger account. elaborate on the statement and explain why journal is neces

It dates from the development of huge scale business and the advent of Joint Stock Company as a form of business that enables the public to participate in giving capital in return