Calculate break-even point in terms of both units and sales

Assignment Help Managerial Accounting
Reference no: EM133064149

Question - 1. A company produces 500 units at a variable cost of $200 per unit. The selling price is $250 per unit and there are fixed expenses of $12,000 per month. For this question, calculate Break-even point in terms of both units and sales.

2. For a company, sales are $80,000, variable costs are $4,000, and fixed costs are $4,000. Calculate the following: (i) PV Ratio, (ii) BEP (Sales), (iii) Margin of Safety, and (iv) Target Profit (in $).

Reference no: EM133064149

Questions Cloud

Speculate the reasons for the increase in demand : 1. There has been a recent increase in the demand for South African Rands in the foreign exchange market. Speculate the reasons for the increase in demand for R
Compute the future dollar costs of meeting this obligation : Compute the future dollar costs of meeting this obligation using the money market hedge and the forward hedges
Discuss the ways taxes affect a company : Discuss the ways taxes affect a company. Imagine you own a company that produces cars:
Give assessments on fiscal transfer : 1. Give your assessments on Fiscal Transfer (Decentralization of some taxes)
Calculate break-even point in terms of both units and sales : The selling price is $250 per unit and there are fixed expenses of $12,000 per month. For this question, calculate Break-even point in terms of both units
Engaging in the exchange of goods : Countertrade pertains to firms engaging in the exchange of goods with another company similar to barter. There is a very minimal currency involved.
Write a value proposition and elevator pitch : You are required to write a value proposition and an elevator pitch that you can use with your future business partner or future employer as per the following d
What will its payout ratio be : If the firm follows the residual dividend policy and also maintains its target capital structure, what will its payout ratio be
Income inequality in the united states : During the last couple of decades, there has been an increase in income inequality in the United States.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Calculate the contribution margin per unit

Phan Incorporated has annual fixed costs totaling $6,000,000 and variable costs of $350 per unit. Each unit of product is sold for $500.

  How do calculate the net profit

Explain any difference from the current presentation of net profit. Based on Daniel Dobbins Distillery Inc. How do calculate the net profit for 1988

  What the net present value of this project

The new system is expected to generate net cash inflows of $9,000 per year in each of the 5 years. What the net present value of this project

  First interest payment

On the first day of the fiscal year a company issues an 8000000 11% five year bond that pays semiannual interest of 440000 receiving cash of 8308869. Journalize the first interest payment and the amortization of related bond premium?

  What is the total factory overhead applied during september

What is the overapplied or underapplied overhead for September? What is the total factory overhead applied during September?

  What is goal incongruence

What is goal incongruence and how can using the metric "return on investment" for performance evaluation lead to goal incongruence?

  Discuss the important factors that need to be considered

Discuss the important factors that need to be considered by the management of Kopi & Kek in its pricing decision

  Prepare the journal entry to record the exchange

What is the fair value of the equipment and prepare the journal entry to record the exchange.

  Estimate the normal selling price

Functional cost approach to pricing products, estimate the NORMAL SELLING PRICE. Note: The markup will end up being 40% of the selling price.

  What will its net profit be

Magic, Inc. manufactures a single product that has a selling price of $25 per unit. If company can achieve total sales of $250,000, what will its net profit be

  What is the amount of tax expense for the current year

A-Z Construction Company was organized on May 1 of the current year. What is the amount of tax expense for the current year

  Exploitation of labor and resources

What is meant by the concept of fair trade referencing to the exploitation of labor and resources?

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