Compute the number of units the company must sell

Assignment Help Accounting Basics
Reference no: EM131750884

ABC company manufactures a single product. Estimated cost data regarding the product, and other information for the product and the company are as follows:

sales price per unit

$40

Total variable production cost per unit

$22

Sales commission (computed on sales revenue)

5 %

Fixed costs and expenses:

 

Manufacturing overhead

$5,598,720

General and administrative

$3,732, 480

Effective income tax rate

40%

Compute the number of units the company must sell in the coming year in order to reach the breakeven point

A. 972,000 Units
B. 583,200 Units
C. 388,000 Units
D. 518,400 Units

Reference no: EM131750884

Questions Cloud

Inflation rate will be over the next year : An investment offers a 18 percent total return over the coming year. Jim Flaherty thinks the total real return on this investment will be only 14 percent.
What should an older job applicant do in this situation : A company cannot discriminate against a potential job applicant merely because that person is older, What should an older job applicant do in this situation.
What is the required rate of return for spear : You have the following information for the company "Spear". The "beta" coefficient for "Sear" is 1.21 based on the past information.
Entries for cash dividends : The declaration, record, and payment dates in connection with a cash dividend
Compute the number of units the company must sell : Compute the number of units the company must sell in the coming year in order to reach the breakeven point
Material delay-employee absences : For the past month, a plant that has an effective capacity of 6,400 has made only 5,000 hammers per day because of material delay, employee absences,
What are the shortcomings of your identified regulations : What are the benefits and shortcomings of your identified regulations? Which of these shortcomings have an effect on the quality and the cost of health care ser
What is swifty payout ratio : Assume that all balance sheet amounts represent average balance figures. What is Swifty's payout ratio
What might an integrated supply chain look like : What might an integrated supply chain look like for a financial services company such as an insurance provider or a bank?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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