Calculate the break-even point in units and dollars

Assignment Help Accounting Basics
Reference no: EM132867286

Question - Light Up is a company that manufactures a light fixture. They have been in business for 10 years. In the month of August, the company sold 400 light fixtures. The sales price for the light fixture was $24. During the month, fixed costs were $4,320 and variable costs were 40% of sales.

Required -

a. Determine the contribution margin in dollars, per unit, and as a ratio.

b. Calculate the break-even point in units and dollars.

c. How much are total variable costs at break-even?

d. Explain what happens to fixed costs when sales exceed breakeven.

Reference no: EM132867286

Questions Cloud

Design of presentation visuals : How does the advice "communicate a lot, using as little as possible" relate to the design of presentation visuals? Provide an example to support your point
Midsized hospital in semiurban area of country : You are the newly hired chief knowledge officer (CKO) for a midsized hospital in a semiurban area of the country.
What effect does borrowing the money on assets : What effect (if any) does borrowing the money on 7/1/20 have on the assets, liabilities, and equity of XYZ Merchandising
Strategy implementation tactic : As the Chief Strategy Officer of Kia Motors & having entered India recently, you have to decide on a Strategy Implementation tactic to take on the fiercely cont
Calculate the break-even point in units and dollars : During the month, fixed costs were $4,320 and variable costs were 40% of sales. Calculate the break-even point in units and dollars
Describe the concept of product differentiation : Google "Product Differentiation" Describe the concept of product differentiation?
Prepare the appropriate journal entry to record the exercise : Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2023, when the market price is $9 per share
Explain the various types of organisation structures : Explain the various types of organisation structures that would best fit different types of organisations.
Determine the month-end payments required on the loan : To purchase his new car, Scooby-Doo has obtained a six-year loan for $40,000 at 8.8% compounded semi-annually.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute amr corporation pension expense

AMR Corporation (parent company of American Airlines) reported the following for 2011 (in millions).

  Mighty corporation manufactures end tables each end table

mighty corporation manufactures end tables. each end table requires 4 direct labor hours for each table. mighty

  Dustin and christy are saving for their daughter

How much money should Dustin and Christy put in the fund today? Assume they can earn 8% on their investment.

  What depreciation method is used for reporting of property

7901AFE Accounting and Reporting Assignment. What depreciation method is used for reporting of property, plant & equipment (PPE)? Does the company disclose assumed useful lives for depreciation purposes? If so, what are the useful lives of the main..

  Calculate the dividends per share on each class of stock

First year, $19,200; second year, $30,000; third year, $75,000; fourth year, $120,000. Calculate the dividends per share on each class of stock

  What is the carrying value of the loan as of march

M& M Bank granted a loan to a borrower. What is the carrying value of the loan as of March 31, 2021? What is the Carrying value of the loan as of April 1, 2020?

  Calculate the average price at which the shares were issued

the balance sheet caption for common stock is the following common stock without par value 2000000 shares authorized

  What is the current market value of Elite bond

If investors require a return equal to 7 percent to invest in similar bonds, what is the current market value of Elite's bond

  Calculate the firm-s eva and mva

Calculate the firm's EVA and MVA for 2005. Assume that Cumberland had 10 million shares outstanding that the year end closing stock price was $17.25 per share, and after tax cost capital was (WACC) 12%.

  How to journalize the transactions

A On January 1, 2012, Sather Company had Accounts Receivable of $54,200 and Allowance for Doubtful Accounts of $3,700. Sather Company prepares financial statements annually. During the year, the following selected transactions occurred.

  Contingent liabilities several months ago reiltz industries

contingent liabilities several months ago reiltz industries inc. experienced a hazardous materials spill at one of its

  Factors in current environment causing businesses to change

The business environment has changed in the past ten years. What are some factors in the current environment causing businesses to change.

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