User Account

All Pages

Calculate the break-even point in units

Assignment Help Managerial Accounting
Reference no: EM133154006

Question - Magnolia Company is considering the production and sale of a new product with the following sales and cost data: unit sales price, $350; unit variable costs, $180; total fixed costs, $399,500; and projected sales, $910,000.

Required -

a) Calculate the break-even point in units.

b) Calculate the break-even point in dollars. Use four decimal places when calculating the contribution margin ratio.

c) Calculate the number of units that would need to be sold to generate operating income of $600,000.

d) Calculate dollar sales that would be needed to generate the same profit as in part c) above.

e) Calculate the margin of safety stated as a percentage using the $910,000 projected sales level.

Reference no: EM133154006

Questions Cloud

Major causes of stress in the workplace : What are some of the major causes of stress in the workplace?
Risk-free security and market portfolio : Explain how differences in allocations between the risk-free security and the market portfolio can determine the level of market risk.
Is a programmed or non-programmed decision : Imagine that you are part of a group with three other co-workers and that you're trying to make a decision about whether or not to discontinue funding an underp
Example of an import commodity into canada : You are to complete the B3 and CCI forms based on your own example of an import commodity into Canada from any country of your choice
Calculate the break-even point in units : Magnolia Company is considering the production and sale of a new product with the following sales and cost data: Calculate the break-even point in units
Introduction of a new enterprise-wide information system : The successful implementation of the SAP solution does not mention any negative outcomes or drawbacks associated with the introduction of a new enterprise-wide
Why is mitigate the risk the typical counter to risk : For security, why is "mitigate the risk" the typical counter to risk? Are there places where other options might be acceptable if researched? How might risk acc
What amount should be reported as cost of goods sold : A physical inventory taken at year-end resulted in an ending inventory of P4,000,000. What amount should be reported as cost of goods sold
Knowledge of stereotyping and social identity theory : Apply your knowledge of stereotyping and social identity theory to explain what went wrong here.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd