Calculate the current level of break-even sales in dollars

Assignment Help Managerial Accounting
Reference no: EM133091059

Question - Klinken Corporation's contribution margin ratio on the sale of its most popular product is 42%. The product is priced at $88, annual fixed expenses are $840,000. Management is evaluating two options: (1) lowering variable costs by 15% and (2) reducing fixed expenses by 15%. Calculate the current level of break-even sales in dollars, as well as the break even sales for the two options.

Reference no: EM133091059

Questions Cloud

International finance : Choose an international company on which to base your discussion. Find the current exchange rate based on the international company's location.
Find example of logical fallacy in advertisement : Find an example of a logical fallacy in an advertisement. How could the advertiser make the same argument without using fallacious reasoning?
Explain the importance of the role of the IMF in the IMS : Question - MNEs, as well as governments, rely on the IMS and the IMF in particular. Explain the importance of the role of the IMF in the IMS
How much compound interest did Bushra earn : The account earned a rate of return of 7.9% compounded annually. How much compound interest did Bushra earn over the 18 years
Calculate the current level of break-even sales in dollars : Klinken Corporation's contribution margin ratio on the sale of its most popular product is 42%. Calculate the current level of break-even sales in dollars
Practical management decisions : What is the connection between these theories and your practical management decisions?
How much interest did your parents pay over the life : The original amount of the mortgage was $530,000. Your parents just paid off their mortgage. How much interest did your parents' pay over the life of mortgage
Managing workplace conflict and resolution : LIRN-based research, and the Internet, apply the learning outcomes of Managing Workplace Conflict and Resolution course concepts
What is the implied effective annual interest cost : Your firm purchased goods from its supplier totalling $100 on credit terms 1.5/10, net 55, what is the implied effective annual interest cost to your firm

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What are the distinguishing features of insurance firms

What are the distinguishing features of insurance firms on their balance sheet/income statement relative to other Financial Institutions ?

  Explain the underlying logic of a process costing system

Explain the underlying logic of a process costing system and its assignment of costs to products . Give an example of a company that would most likely use

  Prepare the companys balance sheet at december

Prepare the company's balance sheet at December 31, 2016. Start with the heading and then complete the rest of the statement.

  What rate of return would he realize

The stock is currently selling for Php 30 per share. If Panday sells all of his shares of Metalz, Inc. today, what rate of return would he realize

  Discuss the requirements of ias in the preparation

Discuss the requirements of IAS 7 in the preparation of the Consolidated Statement of Cash Flows and the importance of Earning per Share to users

  Determine transfer price using the general transfer pricing

Determine a transfer price using the general transfer pricing rule. The Industry Division transfers partially completed components

  What are the total benefits of adopting lean production

Classic industries manufactures iphone case, Should the company adopt lean production? Why or why not? What are the total benefits of adopting lean production?

  Make a monthly comprehensive budget plan for storm

Make a monthly comprehensive budget plan for Storm's new business unit for January through March. The plan should include the sales

  How much overhead would allocate to a job

Using total direct labour cost to calculate a predetermine overhead rate, how much overhead would you allocate to a job which uses 300 direct labour hours?

  What is the total value of the product transferred

What is the total value of the product transferred from the filling preparation department to baking in December? (Round final answer to the nearest dollar.)

  Part-1the balance sheet of phototec inc a distributor of

part-1the balance sheet of phototec inc. a distributor of photographic supplies as of may 31 is given belowphototec

  Determine direct materials costs in ending work in process

The ending balance of its Work in Process Inventory account was $85,000, Determine the direct materials costs in ending Work in Process Inventory.

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