Acme inc sells its product for 45 the variable cost per

Assignment Help Accounting Basics

Reference no: EM13601073

Cost-volume-profit analysis is used to analyze the relationship between revenues, variable costs, fixed costs, profits and units produced.

For each of the following situations, calculate the missing items.

(a) Acme, Inc. sells its product for $45. The variable cost per unit is $24, and fixed costs are $1,672,500. What profit will Acme make if 225,000 units are produced and sold?

(b) Beta Co, can sell 140,000 units in one year. Variable costs are $130 per unit, and fixed costs are $4,040,000. How much should Beta sell its product for per unit if the company wants to make a pretax profit of $2,260,000?

(c) Capitol Enterprises sells $85,400 units in one year. The product has a contribution margin of $44, and fixed costs are $1,907,600. What is Capitol enterprises' pretax profit?

(d) Denson, Inc. sells its product for $135. The product has a variable cost of $105 and fixed costs of $36,000,000. How many units should the company sell if it wants to earn pretax profits of $27,000,000?

(e) Edgar Co. has a tax rate of 35 percent. The company sells a product with an $18.50 contribution margin; fixed costs of $9,000,000 are incurred by the company annually. How many units should the company sell if it wants to earn after-tax profits of $3,325,000?

Reference no: EM13601073

Questions Cloud

During the year the company produced 24000 units and sold : the ireland company manufactures and sells a single product. the following costs were incurred during the companys

All raw materials are considered to the manufacturing : lang productions had the following beginning and ending inventory balances for april 2009. 4109 43009 raw material

What organizations are responsible for governing financial : what organizations are responsible for governing financial reporting and what is the role of each organization? how

What are the main objectives of financial reporting and : what are the main objectives of financial reporting and who uses financial reporting? what type of information will

Acme inc sells its product for 45 the variable cost per : cost-volume-profit analysis is used to analyze the relationship between revenues variable costs fixed costs profits and

What is the break-even point for snoknoesif the owner wants : snokones has the following cost structure. selling price per unit 1.50 variable cost per unit 0.45 fixed costs per

Intercept inc estimated that for 2009 761250 of overhead : intercept inc. estimated that. for 2009 761250 of overhead costs would be incurred at 175000 machine hours. during 2009

The following table contains calculations of several key : the following table contains calculations of several key ratios for indianola pharmaceutical company a maker of

Give a historical overview of how rule-making has : 1 identify key organizations involved in accounting rule-making.2 explain what is meant by authoritative support.3

User Account

All Pages