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

Consistency in accounting principle, Q. Consistency in accounting principle...

Q. Consistency in accounting principle? Consistency necessitates that a company use the same accounting principles and reporting practices through time. Consistency makes possi

What is date column in journal, Q. What is Date column in journal? The ...

Q. What is Date column in journal? The first column on every journal page is for the date. Intended for the first journal entry on a page this column contains the year and mont

Show employment opportunities in accounting, Q. Show Employment opportuniti...

Q. Show Employment opportunities in accounting? Throughout the last half-century accounting has gained the same professional status as the medical and legal professions. At pre

Evaluating revenue measure or system, Question : The several evaluative...

Question : The several evaluative criteria for evaluating revenue measure or system are: ? Yield ? Political expediency ? Ease of administration ? Consistency

Consolidation, Perth Ltd acquired 80% of the share capital of Summer Ltd on...

Perth Ltd acquired 80% of the share capital of Summer Ltd on 1 July 2011. The following equity balances appeared in the records of Summer Ltd at the date of acquisition: Share capi

The use of ledger accounts, The use of ledger accounts A journal entry ...

The use of ledger accounts A journal entry is similar to a set of instructions. The execution of these instructions is known as posting. Since stated earlier posting is recordi

Explain about the management accounting, Explain about the Management accou...

Explain about the Management accounting Management accounting has also changed by becoming more outward looking in its focus. In past, information provided to managers has bee

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