How many units would we need to sell to break even

Assignment Help Accounting Basics
Reference no: EM131820273

Problem

Assume that we are manufacturing a product, and assume that the sales price per unit is $70, the variable cost is $20 per unit, and the fixed cost is $85,000; a) how many units would we need to sell to break even? b) How many units would we need to sell to earn a profit of $120,000? c) How many units do we need to sell to double that profit to $240,000? D) Why didn't the number of units double from Part B to Part C?

Reference no: EM131820273

Questions Cloud

How does change impact motivation of employees : Discuss how employers will explain about the training that will be offered to all employees and how employee job skills will change with the implementation.
Negative interpretation of home depot cash position : Considering Home Depots overall cash flows, including its cash flows from operations, would you say that this leads to a negative interpretation of Cash
Journalize the declaration and payment of the cash dividend : Journalizing cash and stock dividends Martial Arts Schools, Inc. is authorized to issue 200,000 shares of $4 par common stock.
Determining the effect of stock dividends : Determining the effect of stock dividends, stock splits, and treasury stock transactions Many types of transactions may affect stockholders' equity.
How many units would we need to sell to break even : How many units would we need to sell to break even? How many units would we need to sell to earn a profit of $120,000?
How does net earnings compare with net cash : Focus on the information for 2009 (year ending January 31, 2010). How does net earnings compare with net cash provided by or used in operations
How much is jackson total stockholders equity : Jackson Health Foods has 8,000 shares of $2 par common stock outstanding, which were issued at $15 per share. Jackson also has a deficit balance in Retained.
What is the purpose of income statements : What is the purpose of income statements, cash flow statements, balance sheet, and statement of retained earnings, and how do they all relate to each other?
What are the tax consequences of the transfer : B- If SC is organized under the laws of Brazil: What are the tax consequences of the transfer? When and how will U.S. taxes be imposed on SC's profits?

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