What is the breakeven point in sales dollars

Assignment Help Financial Accounting
Reference no: EM13776464

Flip had sales of $10,000 (100 units at $100 per). Manufacturing costs consisted of direct labor $1,500, direct materials $1,400, variable factory overhead $1,000, and fixed factory overhead $500. The company did not maintain any inventories, so total cost of goods sold was $4,400. Selling expenses totaled $1,600 ($600 variable and $1,000 fixed), and administrative expenses totaled $1,500 ($500 variable and $1,000 fixed). Operating income was $2,500. Round all final answers to nearest dollar or whole number.

Requirements:

a. What is the breakeven point in sales dollars and in units if the fixed factory overhead increased by $1,700?

b. What is the breakeven point in sales dollars and in units if costs remain as originally projected?

c. What would be the operating income be if sales units increased by 25%

Reference no: EM13776464

Questions Cloud

Describe the implied warranties under bc sale of goods act : Describe the implied warranties under the BC Sale of Goods Act. What is a ‘bona fide occupational qualification' and why is it significant
Chronological order of the major legislation : What is the chronological order of the major legislation that makes up the history of employment law in this country?
Calculate the net present value with a required return : Calculate the net present value with a required return of 8%, an initial investment of $45,000, and cash flows of $12,000, $20,000, $10,000, and $6,000 for years 1 through 4 respectively.
Equal employment opportunity commission : Your employee, Tom Smith, believes women are treated as inferiors in the department where he works. He has complained to his supervisor, Doug Greer, who is also your employee, and the Equal Employment Opportunity Commission (EEOC). Greer has resp..
What is the breakeven point in sales dollars : Flip had sales of $10,000 (100 units at $100 per). Manufacturing costs consisted of direct labor $1,500, direct materials $1,400, variable factory overhead $1,000, and fixed factory overhead $500. The company did not maintain any inventories, so tota..
Compute the family and school risk factors : Compare and contrast male and female gang members. Why do these differences exist? Determine the family and school risk factors for gang involvement
Attributions and assumptions made in each situation : If you were the person in each of these scenarios and took a minute to look back at these behaviors would you have the same thoughts about yourself (you are in the wrong job or that you are a jerk)? Why might the attributions of your own behaviors..
Unit of product using activity-based costing : Assume that a pet food manufacturer s considering adding two types of pet food to its existing product line. Research had determined that good demand exists for dog food in 40-pound bags and cat food in 1/2 pound cans. How much overhead cost will be ..
Employee motivation according to the theory : Define Herzberg's Theory. Identify specific proactive steps supervisors can take to influence employee motivation according to the theory. Discuss how different generations might or might not be motivated according to the theory.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Uniform series and the present worth values

Over the last twelve years, you have been making monthly payments on a 30 year, $80,000 home loan at 8% interest compounded monthly. You have just won $100,000 while on a riverboat gambling cruise in Dubuque, Iowa. Draw the Cash Flow Diagram (neatly ..

  Based on the stock price for the shown below present a

based on the stock price for the shown below present a graph that illustrates the stock price of every company. show

  Quality-of-earnings analysis

Evaluate whether the reported earnings of a company reflect its true economic earnings, and also evaluates the ability of reported earnings to predict future earnings.

  Calculation of value of common stock and yield on common

calculation of value of common stock and yield on common stock.1. expected rate of return on a corporate

  Strata analysis for open invoices

As CFO, verbally describe in a narrative whether there are any things Ramsey PO Clerks should be looking out for or doing better in their data entry and as CFO, verbally describe in a narrative what each of these strata charts show and how they ca..

  Prepare the general journal entry to record the issuance

Martin Corporation issued $3,000,000 of 8%, 20-year bonds payable at par value on January 1, 2009. Interest is payable each June 30 and December 31. Prepare the general journal entry to record the issuance of the bonds on January 1, 2009.

  Part-1exercise 1issuance of stock prepare journal entries

part-1exercise 1issuance of stock prepare journal entries to record the issuance of 100000 shares of common stock at 20

  What was their taxable income last year

Acme Universal is a micro-cap that had a $3,000,000 drop in taxable income this year. Their drop in taxes was $1,030,000. For each of the following, determine the largest amount that meets the conditions given above.

  Greatest expense is cost of goods sold

A Merchandiser’s greatest expense is cost of goods sold. Cost of goods sold is calculated based on the different inventory costing method that is used by the company: FIFO, LIFO, Specific identification method, or weighted average cost method.

  Estimated total fixed manufacturing overhead

The estimated variable manufacturing overhead was $7.17 per labor hour and the estimated total fixed manufacturing overhead was $584,320. The actual labor hours for the year turned out to be 33,300.

  Choose a global business form the following

Every member needs to bring at least 2 articles which the group would use and add that articles with your report with reference page. There is no need to submit the articles on BB.

  Taxable income and the tax on the taxable income

Samuel, head of household with two dependents, has 2014 wages of $26,000, paid alimony of $3,000, has taxable interest income of $2,000, and a $12,000 0%/15%/20% net long-term capital gain. Samuel uses the standard deduction and is age 38. What is hi..

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