How many vcrs must be sold each year

Assignment Help Accounting Basics
Reference no: EM131731581

Single-Product: Ellson Electronics Company

Ellson Electronics Company manufactures video cassette recorders, which it sells for $300 per unit.  Variable costs are $210 per unit, and fixed costs are $630,000 a year.  The tax rate is 40%.

Required:

a. How many VCRs must be sold each year for the firm to break even?

b. Determine the number of VCRs that must be sold if the firm desires an after-tax profit of $270,000.

c. In an effort to increase sales, the firm may reduce the price to $270 per unit.  Calculate the number of units that must be sold to achieve an after-tax profit of $270,000.

Reference no: EM131731581

Questions Cloud

Describe the unconditional distribution : Suppose that is a random variable that follows a gamma distribution with parameters ? and a, where a is an integer, and suppose that, conditional on.
Our emotional connection and perceptions of media change : As technology continues to converge how will our emotional connection and perceptions of media change? Will this be good thing?
Should cat-calling be considered sexual harassment : What is the issue (must in the form of a "yes or no" question)? "Should cat-calling be considered sexual harassment?"
Describe how the cell membrane maintains homeostasis : Describe how the cell membrane maintains homeostasis. Describe the process of diffusion,osmosis,and facilitated diffusion
How many vcrs must be sold each year : Ellson Electronics Company manufactures video cassette recorders, which it sells for $300 per unit. How many VCRs must be sold each year for the firm
Number of items searched through before program terminates : An item is present in a list of n items with probability p; if it is present, its position in the list is uniformly distributed. A computer program searches.
Detail a project risk and strategies for mitigation : In your final project, you discussed in detail a project risk and strategies for mitigation.
Explain your motivation for using the chosen construct : Identify the audience for your handbook and the main construct in learning and cognition that will provide the focus of your handbook.
Transcription group to address the quality problem : How would you mobilize your transcription group to address the quality problem and recommend solutions?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Accrual basis accounting

Determine which of the following is not one of the four conditions that normally must be met for revenue to be recognized according to the revenue principle for accrual basis accounting

  The accountant recommends that the project be rejected

eagle airways company is planning a project that is expected to last for six years and generate annual net cash inflows

  Gore manufacturing incurred the following costs during the

gore manufacturing incurred the following costs during the year direct materials 22 per unit direct labor 14 per unit

  Prepare schedule of cost of goods manufactured

Income statement and schedule of cost of goods manufactured. The following items (in millions) pertain to Schaeffer Corporation: Schaeffer's manufacturing.

  Compute the total effect of the errors on net income

Crane Tool Company's 31 year-end financial statements contained the following errors. Compute the total effect of the errors on 2018 net income

  Evaluate the sales price of the special order

Special order, opportunity cost. In order to determine whether a special order should be accepted at full capacity, the sales price of the special order.

  Discuss for cases of accounting fraud in the us history

Discuss for cases of accounting fraud in the US history. mention what happened who perpetuated and the aftermath of the fraud

  Hardly a day goes by without an article appearing on the

hardly a day goes by without an article appearing on the crises affecting many of our financial institutions in the

  Please provide the proper journal entries

Purity Landscaping Co. usually receives a monthly phone bill for $200, in which a check is issued for immediately. However, for this month end, the bill never came.

  Determine the cost of the land to be reported

Fastball Delivery Company acquired an adjacent lot to construct a new warehouse, paying $30,000 and giving a short-term note for $270,000.

  What can the accountant contribute to the process

Do you feel that accountants should be allowed to participate in the design process? What can the accountant contribute to the process? List other team players that you feel would be good contributors to the design process.

  Mueller corp manufactures compact discs that sell for 500

mueller corp. manufactures compact discs that sell for 5.00. fixed costs are 28000 and variable costs are 3.60 per

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