What is the break-even point in sales units

Assignment Help Financial Accounting
Reference no: EM131264835

ABC Company sells a product that sells for $20 per unit. Variable costs are $8 per unit, and fixed costs total $12,000 annualy.

a) What is the product's CM ratio ? ( 1 decimal place)

b) What is the break-even point in sales dollars? ( 0 decimal places )

c) What is the break-even point in sales units? ( 0 decimal places )

Reference no: EM131264835

Questions Cloud

How much in dividends did firm pay : On 12/31/08, hire industries retain earning of $ 525,000 on its balance sheet, and it reported that it had $135,000 of net income during the year. On its pervious balance sheet at 12/31/07, the company had reported $445,000 of retained earning. No sh..
Part of the acquisition cost of self-constructed assets : What are some criticisms of capitalizing interest costs on borrowed funds per SFAS No. 34 as part of the acquisition cost of self-constructed assets in light of the conceptual framework?
Estimate commission revenues for stubs-r-us for coming year : Stubs-R-Us is a local event ticket broker. Last year, the company sold 900,000 tickets with an average commission of $5. Because of the general economic climate, Stubs expects ticket volume to decline by 20 percent. Estimate commission revenues for S..
What was the approximate amount stolen during the past year : Snake Creek Company has one trusted employeewho, as the owner said, handles all of the book-keeping and paperwork for the company. This employee is responsible for counting, verifying, and recording cash receipts and payments, making the weekly bank ..
What is the break-even point in sales units : ABC Company sells a product that sells for $20 per unit. Variable costs are $8 per unit, and fixed costs total $12,000 annualy. What is the product's CM ratio? What is the break-even point in sales dollars? What is the break-even point in sales units..
Company could keep the inventory current and fresh : Where does Rue 21 sell its inventory? Retail or wholesale? In limited locations or throughout the world. Are there specific states or countries? What type of items does Rue 21 have in inventory? Would Rue 21 ever have outdated inventory? What would R..
Support the goals and culture of this organization : A large advertising agency is headquartered in New York, but has branch offices in major cities around the world. Those offices work with key accounts in their respective cities, but branches also collaborate with each other when a client wants an in..
Preclude the recognition of an executory contract : Does the definition of an asset as “probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events” preclude the recognition of an executory contract? If not, why don’t we recognize them?
Differences in refundable credit and nonrefundable credit : In your own words, describe the similarities and differences between a refundable credit and a nonrefundable credit. An example of each kind of credit.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Gator corporation manufactures

Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $503,690, variable expenses of $372,430, and fixed expenses of $140,550.

  Calculate the magnitude of operating leverage

Reconstruct the income statement using the contribution margin format and calculate the magnitude of operating leverage.

  Golf balls is required to reach the break-even point

Data related to the expected sales of golf balls for Medalist Inc. for the current year are as follows:  What amount of sales of golf balls (in dozens) is required to reach the break-even point?

  Describe the basic accounting equation

Describe the basic accounting equation that provides the structure for the balance sheet. Define the three major components reported on the balance sheet.

  Calculate the gross margin percentage

to include sales tx on sales form, you must set up the tax as an item. You can enter petty cash expenditures just as you enter checks. Where do you enter shipping charges for items received? Analyzing the Balance Sheet will allow you to calculate the..

  Segmented income statement in the contribution format

Golfpro Corporation produces and markets two types’ drivers: Model X2 and Model X3. The following data were gathered on activities last month: Prepare a segmented income statement in the contribution format for last month.

  Other comprehensive income is found on the income statement

Fair Value/Cost may be possible even with a 22% ownership stake. Unrecognized profits in trading securities are reported Other Comprehensive Income. Dividends paid out of Common Stock at Par are reported as income. Other Comprehensive Income is found..

  What is the optimal mix

Cranky company produces two types of gears: X and Y. The unit contribution margins are $25 and $10 respectively. They can sell all they can produce. Each gear must be notched by a special machine. How many of each should be made (what is the optimal ..

  Evaluate the relevant cost of making

Compute the relevant cost of (a) making and (b) purchasing the component. Which alternative isles costly and by how much and What qualitative factors might influence the decision about whether to make or to buy the component?

  When the level of activity decreases-variable costs

When the level of activity decreases, variable costs will:

  Under activity-based costing

Perdon Corporation manufactures safes—large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Perdon is analyzing the profitability of its two products. Part of this analysis involves estimating the amoun..

  Make the necessary adjusted journal entries

Create the Journal for the transactions and Post these to the T-accounts and create the Unadjusted trial balance, Make the necessary Adjusted journal entries.

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