What are the variable expenses per unit, Cost Accounting

Assignment Help:

Superior Door Company sells pre-hung doors to home builders. The doors are sold for $60 each. Variable costs are $42 per door and fixed costs total $450,000 per year. The company is currently selling 30,000 doors per year.

1. What are the variable expenses per unit?

2. Using the equation method:
A. What is the break-even point in units and in sales dollars?
B. What sales level in units and in sales dollars is required to earn an annual profit of $90,000?
C. Assume that through negotiations with the manufacturer the Super Sales Company is able to reduce it's variable expenses by $3 per unit.What is the company's new break-even point in units and in sales dollars?

3. Repeat question 2 using the formula method.

 


Related Discussions:- What are the variable expenses per unit

Flexible budget, Flexible Budget Flexible budget is a budget that is d...

Flexible Budget Flexible budget is a budget that is designed to change in accordance along with the level of activity attained. It includes budgeting at various levels in anti

Product mix, Kaplan Computers manufactures high end computer systems for th...

Kaplan Computers manufactures high end computer systems for the graphics design industry. At the present time, the company makes three computers with the following characteristics

Commodities to stock, Commodities to Stock Employ Material Req...

Commodities to Stock Employ Material Requirement Planning From the Master Production Schedule the manager has determined such the products to be produced. A

Calculate the cost per unit for products, Chemical Recovery Company uses co...

Chemical Recovery Company uses common machinery to manufacture two products.  Each year, the company has a total of four productions runs, which is two production runs for each pro

Working capital accounts, Determine the additional cash a company could obt...

Determine the additional cash a company could obtain from its working capital accounts if it can improve its average collection period by three days and inventory turnover by 0.5 t

Wat is bep in cost accounting, The level of activity at which total revenue...

The level of activity at which total revenues eqivalent total costs. A point at which there is no profit and no loss.

Calculate the amounts that will show in the statement, MX obtains 80% of th...

MX obtains 80% of the 1 million issued $1 ordinary share capital of FZ on 1 May 2009 for $1,750,000 when FZ's reserved earnings were $920,000. The carrying worth was considered

Accounting 561, Your organization (City Rehab) has been approached by an MC...

Your organization (City Rehab) has been approached by an MCO looking for an exclusive arrangement for the rehabilitation of its hip replacement patients. The MCO is aggressively po

Marginal costing.., importance of marginal costing &standing costing

importance of marginal costing &standing costing

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