Break-even point in units, Accounting Basics

Assignment Help:

The Braggs & Struttin' Company produces an engine for carpet cleaners called the "Snooper." Budgeted cost and revenue data for the "Snooper" are given below, depends on sales of 40,000 units.

 

Sales                                      $1,600,000.

Less: COGS                              1,120,000.

Gross margin:                             $480,000.

Less: Operating expenses             100,000.

Income:                                      $380,000.

 

Cost of goods sold having of $810,000 of variable costs and $310,000 of fixed costs. Operating expenses having of $30,000 of variable costs and $70,000 of fixed costs.

Required:

A. Determine the break-even point in units and sales dollars.

B. Determine the safety margin (in dollars).

 


Related Discussions:- Break-even point in units

Nance''s restaurant, Nance's Restaurant, a local independent restaurant, is...

Nance's Restaurant, a local independent restaurant, is evaluating new point-of-sale (POS) systems and must determine if a new installation is feasible. A new POS installation wou

Company law, I want a company law assignment

I want a company law assignment

Work as assignment creator, I have just created my profile here, I want to ...

I have just created my profile here, I want to work with this platform. I am an ACCA student, completed my FIA diploma. How can I get or apply for work now?

Determine the types of credit card sales, Determine the types of Credit car...

Determine the types of Credit card sales Bank Credit Card Sales - Most retail businesses accept bank credit cards. Treated as a CASH sale. Recording Bank Credit Card Sale

Show adjustments for deferred items, Q. Show Adjustments for deferred items...

Q. Show Adjustments for deferred items? This segment discusses the two types of adjustments for deferred items asset/expense adjustments and liability/revenue adjustments. In t

A company would not acquire treasury stock, Q. A company would not acquire ...

Q. A company would not acquire treasury stock a. in order to reissue shares to officers. b. as an asset investment. c. in order to increase trading of the company's stock. d. to ha

Qualitative characteristics of financial reporting, Q. Qualitative characte...

Q. Qualitative characteristics of financial reporting? Accounting information must possess qualitative characteristics to be useful in decision making. This criterion is hard t

The major difference in the statement of retained earnings, The major diffe...

The major difference in the statement of retained earnings between a service business and a  Merchandising business is  A. that the retained earnings statement of a merchandisi

Balance of the merchandise inventory account, Q. Balance of the Merchandise...

Q. Balance of the Merchandise Inventory account? The balance of the Merchandise Inventory account is a cost of the inventory that should be on hand. This fact is a major reason

Write Your Message!

Captcha
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