Calculate the break-even point in units and sales dollars

Assignment Help Accounting Basics
Reference no: EM133005195

Question - Brown Company makes printers that sell for $400 each. For the coming year, management expects fixed costs to total $4,200,000 and variable costs to be $160 per unit. Sales for the coming year are expected to be 18,000 units.

Required -

1. Calculate the break-even point in units and sales dollars.

2. Calculate the expected margin of safety in dollars and units.

3. What is the expected net income? (Use the incremental approach).

4. How many units must be sold to earn an operating income of $1,200,000.

5. Refer to the original information above. Calculate the expected degree of operating leverage.

Reference no: EM133005195

Questions Cloud

What is the annual rate of interest on loan : The treasurer of Brandon Blue Sox is seeking a $28,000 loan for 180 days from the Brandon Credit Union. The stated interest rate is 10 percent and there is a 15
How large a dividend will each shareholder receive this year : If the company maintains a constant dividend payout ratio each year, how large a dividend will each shareholder receive this year
LEH 352 Studies in Literature Assignment : LEH 352 Studies in Literature Assignment Help and Solution, Lehman College - Assessment Writing Service
American put option with an exercise price : An American put option with an exercise price of $15, sells for $7.50; the stock price is $6 presents an arbitrage opportunity ( Assume no transaction cost and
Calculate the break-even point in units and sales dollars : Brown Company makes printers that sell for $400 each. Sales for the coming year are expected to be 18,000 units. Calculate the break-even point in units
Calculate the length of time in days : The rate of return received by the initial purchaser was 4% per annum effective. Calculate the length of time in days
Prepare a consolidated income statement for palermo : Palermo's beginning and ending inventories for 2020 were $72,000 and $66,000, Prepare a consolidated income statement for Palermo Corporation
What is the derivative liability on july : Assume the market price is P110 on December 31, 2014 and P90 on July 1, 2015. What is the derivative liability on July 1, 2015
Describe the state of ethics in this organisation : Describe the state of ethics in this organisation in terms of the modes of managing corporate ethics. Should one assume that divisions' leadership reflect state

Reviews

Write a Review

Accounting Basics Questions & Answers

  What journal entries should be recorded by sandy company

From the lessee's viewpoint,what kind of lease is the above agreement. What journal entries should be recorded by Sandy Company for all of 2004

  Create a scatterplot along with a correlation

Do the students' scores for the two exams tend to go together, so that those who do poorly on the midterm tend to do poorly on the final.

  Tessmer manufacturing company produces inventory in a

tessmer manufacturing company produces inventory in a highly automated assembly plant in olathe ks. the automated

  The iasb based in london england was established with the

the iasb based in london england was established with the goal of developing a set of international accounting

  Find the current stock price

AWC has a current dividend of .90 and current EPS of 1.25. Return on equity (ROE) is 8.60%. The required return is 13.4%.

  Compute the margin of safety in dollars

Glacier Company estimates that variable costs will be 62.5% of sales, Assuming actual sales are $2 million, compute the margin of safety in dollars

  Prepare a journal to record the exchange

At the time of this exchange, the market price of the engine was Rp5,500,000. Prepare a journal to record the exchange, the estimated age of the machine

  What is the number of visitors that would be needed

Variable costs of running the park are $65 per visitor and fixed costs are $1,600,030 per annum. What is the number of visitors that would be needed

  Calculate the break-even point in units sold

Using the new cost structure, calculate the break-even point in units sold and break-even total revenues

  How much total interest will Blossom pay on payment plan

Blossom Excavating Inc. is purchasing a bulldozer. The equipment has a price of $106,000. How much total interest will Blossom pay on payment plan

  What is your overall initial impression of the company

Review the income statement and balance sheet of the selected organization. What is your overall initial impression of the company based on the financial data you reviewed?

  Calculate article income tax for scholars and make a journal

Calculate Article 21 income tax for scholars and make a journal. Kurniawan is an employee who is married and has two children. He works at PT Mas Murni.

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