Calculate the break-even point in units

Assignment Help Managerial Accounting
Reference no: EM133001518

Problem - Priest and Sons, a local manufacturer of a product that sells for $13.50 per unit. Variable cost per unit is $7.85 and fixed cost per period is $1 220. Capacity per period is 1100 units.

Perform a break-even analysis showing

a) an algebraic statement of

(i) the revenue function;

(ii) the cost function;

(iii) calculate the break-even point in units.

b) a detailed break-even chart.

Reference no: EM133001518

Questions Cloud

What is variance analysis and how is it used : Question - Operating Budgets - How does an operating budget work to discipline a firm's management? What is "Variance Analysis" and how is it used
What is the profit calculated using variable costing : Scomo Ltd makes a profit of $100,000, calculated under absorption costing. What is the profit calculated using variable costing
Calculate the equivalent units of direct materials : Using the weighted average method of process costing, calculate the equivalent units of direct materials and conversion costs for the month of May
What is the present value of these cash flows : Wilkinson Co. has identified an investment project with the following cash flows: What is the present value of these cash flows
Calculate the break-even point in units : Problem - Priest and Sons, a local manufacturer of a product that sells for $13.50 per unit. Calculate the break-even point in units
Evidence of understanding for what the numbers mean : Evidence of understanding for what the numbers mean - Why we haven't used class A in the lab script instead of class B. What would be the different
What was the final payment : The loan was repaid in full on December 20, with payment of $2700.00 on September 19 and 31,000.00 on November 1. What was the final payment
How much must ed invest today to pay his son : Assume Ed can invest his money at 4% in an ordinary annuity. How much must Ed invest today to pay his son $350 semiannually for 12 years
What is the length of its cash conversion cycle : The average age of inventory is 69 days. Assuming a 365-day year, what is the length of its cash conversion cycle

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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