Cost-volume profit analysis

Assignment Help Financial Accounting

Reference no: EM131221951

Cost-Volume Profit Analysis

Hailstorm Company sells a single product for $22 per unit. Variable costs are $14 per unit and fixed costs are $65,000 at an operating level of 7,000 to 12,000 units.

a. What is Hailstorm Company's break-even point in units?

Answer units

b. How many units must be sold to earn $12,000 before income tax?

Answer units

c. How many units must be sold to earn $13,000 after income tax, assuming a 35% tax rate?

Answer units

Reference no: EM131221951

Questions Cloud

Explain how does lifo subtract inflation from inventory cost : How does LIFO subtract inflation from inventory costs? Explain how the cash flow of $174,400 in this example was computed. Explain why this amount may not be correct.

Discount is amortized in the first year on the bonds term : A company issues a 10 year 7.5% $1 million dollar bond which pays interest semi-annually. The issue price is $966,024.18 Using the effective interest method, how much of the discount is amortized in the first year on the bonds term?

Assume that this level of activity is within relevant range : Erkkila Inc. reports that at an activity level of 6,200 machine-hours in a month, its total variable inspection cost is $425,630 and its total fixed inspection cost is $170,885. What would be the average fixed inspection cost per unit at an activity ..

Variable and absorption costing : During its first year, Walnut, Inc., showed an $36 per-unit profit under absorption costing but would have reported a total profit $32,000 less under variable costing. If production exceeded sales by 500 units and an average contribution margin of 62..

Cost-volume profit analysis : Hailstorm Company sells a single product for $22 per unit. Variable costs are $14 per unit and fixed costs are $65,000 at an operating level of 7,000 to 12,000 units. What is Hailstorm Company's break-even point in units? How many units must be sold ..

Discuss the concepts of strategic capabilities : "Outline and discuss the concepts of strategic capabilities, core competencies and strategic competitive advantage and how they relate. In your discussion, consider how CEOs utilise these concepts in the strategic management process to build and s..

Find out which countries have joined the euro area recently : Find out which countries have joined the euro area recently or are likely to join soon. Why are these countries joining while others in the European Union are still left out?

Finances these assets entirely with common stock : Commonwealth Construction (CC) needs $2 million of assets to get started, and it expects to have a basic earning power ratio of 30%. CC will own no securities, so all of its income will be operating income. Assuming a 40% tax rate on all taxable inco..

Determine the sales in units and in dollars : Cohen Company produces and sells stocks. Variable costs are $6 per pair and fixed costs for the year total $75,000. The selling price is $10 per pair. Determine the sales in units and in dollars, required to make an after-tax profit of $25,000 given ..

User Account

All Pages