Calculate the breakeven point in units and in dollars

Assignment Help Accounting Basics
Reference no: EM133002352

Question - Zeroll's icecream company produces and sells premium icecream cones in coles supermarket. The following tables shows selling price and cost information of icecream cones .

price per cone: $5

variable cost per cone:

ingrediants: $1.35

direct labour $0.45

overhead $0.20

fixed cost per month $3000

a) Calculate the breakeven point in units and in dollars?

b) The company general director determined a target profit of $6000for next year. Given the price and cost information above , what are the required sales in units and in dollars for the company to acheive this target?

c) Calculate Zerolls new break even point (in units and in dollars ) for each of the following independent scenarios:

i) selling price decreases by $0.50 per cone

ii) fixed costs decrease by $300per month

Reference no: EM133002352

Questions Cloud

Compute the cost of the december inventory : One of the inventory items sold by Hiddy Co. is a raspberry-vanilla body wash. Compute the cost of the December inventory
What is the significance of the first sentence : What is the significance of the first sentence in this excerpt and If you were attempting to get this case overruled, what arguments might you make to counter
Calculate the change in inventory of products : Your company incurred selling/distribution expenses of 33000 USD, Basing on given information calculate the change in inventory of products and work in progress
What is the total current liabilities as of the year ended : The marketing department expects that 60% of the balance will be claimed on 2021 and 40% on 2022. What is the total current liabilities
Calculate the breakeven point in units and in dollars : Zeroll's icecream company produces and sells premium icecream cones in coles supermarket. Calculate the breakeven point in units and in dollars
What is the npv of the proposed project : However, you are certain that the new EnviroClean products will increase revenues by $550,000 each year. What is the NPV of the proposed project
Comprehensive learning assessment : Comprehensive Learning Assessment - What four contemporary theories on employee motivation offer insights into improving employee performance
Calculate the optimal product mix : Fixed costs are estimated at $6,240,000 per annum and are assumed to accrue evenly during the year. Calculate the optimal product mix
How much money will he have at the end of five years : Edmund invested $3,630 in an account that pays 6 percent simple interest. How much money will he have at the end of five years

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is meant by the terms tax avoidance and tax evasion

A client comes to your tax firm. She asks you to research a tax issue and advise her on how to reduce her exposure to an IRS audit. What resources would you use in your research, and what would your advice be?

  Journal entry that stinson will make to record the principal

Prepare the journal entry that Stinson will make when the note is established. Prepare the journal entries that Stinson will make to record the interest accruals at each quarter end and interest payments at each payment date. Prepare the journal entr..

  Explain the objectives of the statement of cash flow

In your own words, explain what the advantage is of analyzing a company's financial statements over a series of years rather than just for the current period?

  Discuss personal experience with medical insurance coverage

Discuss your personal experience with medical insurance coverage. Which payment methodology does your insurance provider use?

  Discuss computing taxable income for companies

Which of the following methods of accounting is never permissible for computing taxable income for companies that sell inventory

  Prepare income statements for each year

Coswell produced 4,800 tons of plastic and sold 2,880 tons. Prepare income statements for each year using variable costing

  Evaluating an investment in expansion

A manufacturer of private-label personal care products must decide whether to fund an unprecedented expansion of manufacturing capacity. The decision prompts fundamental financial analysis of the potential project, including development of cash fl..

  Compute the amount due at maturity

Problem - A business issued a $5,000, 60-day, 12% note to the bank. Compute the amount due at maturity

  What was effect on net income of entering into derivative

Titanium Ltd, What was the effect on net income of entering into this derivative transaction for the period from January 1 to June 30, 2021?

  The auditors evidence accumulation

Which of the following decisions are relevant to the auditors evidence accumulation

  Prepare a note amortization schedule for the first year

(Negative Amortization) Good-Deal Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need financing, Good-Deal offered a low down payment and low car payments for the first year after purc..

  How should Davis Corporation account for its investment

The fair value of the shares purchased by Davis Corporation was $280,000 on December 31, 20X2. How should Davis Corporation account for its investment

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