Calculate breakeven point in units-breakeven point in dollar

Assignment Help Financial Accounting

Reference no: EM131284799

XYZ Company is considering the manufacture of a new toy. Each toy would sell for $5 and would require $2.00 in variable costs. In addition, annual fixed costs associated with the project would total $84,000. Calculate: (a) the breakeven point in units, (b) the breakeven point in dollars, (c) the profit or loss if 34,000 toys were sold, (d) the margin of safety if 34,000 toys were budgeted to be sold (e) the number of toys that must be sold to earn a profit of $90,000, and (f) the profit if total revenue is $200,000. (g) What is the contribution ratio? (h) What is the breakeven point in dollars?

Reference no: EM131284799

Questions Cloud

Compute taxable income and income taxes payable : Zurich Company reports pretax financial income of $70,000 for 2017. The following items casue taxable income to be differnt than pretax financial income. Depreciation on the tax return is greater than derpeciation on the income statement by $16,000. ..

What is firsts contribution to consolidated net income : Winner Corporation acquired 80 percent of the common shares and 70 percent of the preferred shares of First Corporation at underlying book value on January 1, 20X9. At that date, the fair value of the noncontrolling interest in First’s common stock w..

The organization has introduced internal audit department : The organization has introduced an internal audit department in the second quarter of the year. The section consists of three staff. The chief internal auditor is a former “Big 6” audit manager with 10 years’ experience in the profession. Assume you ..

Record the declaration and payment of the cash dividend : Greenwood Corporation has 81,000 shares of common stock outstanding. It declares a $1 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31. Prepare the entries on the appropriate dates to ..

Calculate breakeven point in units-breakeven point in dollar : XYZ Company is considering the manufacture of a new toy. Each toy would sell for $5 and would require $2.00 in variable costs. In addition, annual fixed costs associated with the project would total $84,000. Calculate: (a) the breakeven point in unit..

Balance sheet for the bank account reconciled : Prepare the adjusting journal entry that should be prepared to reflect the reconciling items. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) What is the amount of cash to be included ..

Compute the standard direct labor rate : Information on Hanley's direct labor costs for January 2010 is as follows: Actual direct labor rate $7.50 Standard direct labor hours allowed 11,000 Actual direct labor hours 10,000 Direct labor rate variance $5,500 F. Compute the standard direct lab..

The change in fair value is deemed temporary : At the beginning of year 2, a company invested $40,000 in a marketable equity security. At that time the security was appropriately classified as an available-for-sale security. At the end of year 2, the security had a fair value of $28,500. The chan..

Compute the net amount of cash received : Presented below are four independent situations. (a) On March 1, 2015, Wilke Co. issued at 104 plus accrued interest $4,218,000, 8% bonds. The bonds are dated January 1, 2015, and pay interest semiannually on July 1 and January 1. In addition, Wilke ..

User Account

All Pages