Calculate the number of units that must be sold to generate

Assignment Help Managerial Accounting
Reference no: EM132536433

Sound City is a major producer of top level professional electric violins. The data given below relates to its best-selling model, D18:

Variable cost per unit $

Direct materials 230

Direct labour 190

Total fixed cost for the year

Factory overheads 196 796

Advertising 55 000

Administrative expenses 68 000

Selling price per unit 2 999

Question a) What is the contribution per unit?

Question b) What is the break-even point in units per year?

Question c) Calculate the number of units that must be sold to generate a profit of $90 000 per year (round to the nearest integer)? Assume that costs and selling price remain constant.

Reference no: EM132536433

Questions Cloud

What is the price chargeable to the customer : Overheads are recovered on the basis of labour hours used at $10 per labour hour. A mark-up of 50% is added. What is the price chargeable to the customer?
What elements of marketplace in which megatech operates : What elements of the marketplace in which MegaTech operates led the firm to believe that project management would improve its operations?
Counterclockwise in cartesian vector : Express the force that will be applied to the spring A point when the disc is rotated 15 ° clockwise and the trailing insert 30 °
What is the total monthly fixed cost : If the average item price is $100 and the average variable cost per item sold is $30, what is the total monthly fixed cost
Calculate the number of units that must be sold to generate : Sound City, Calculate the number of units that must be sold to generate a profit of $90 000 per year (round to the nearest integer)?
Charging a capacitor : In a lab, a student is charging a capacitor over a resistor as given in the figure with R=8x105 W, ?=12 V and C=5 mF. The student closes the switch
What is the big salads price elasticity of demand : In August, the price of the Big Salad increased to $4.95 and as a result, 540 Big Salads were sold. What is the Big Salad's price elasticity of demand
Discuss how globalization has changed jobs : Discuss how globalization has changed jobs in an organization where you have worked. What are some HR responses to those changes?
Show the entries that would be made relative to sales : No Doubt Company includes one coupon in each box of soap powder that it packs, Show the entries that would be made relative to sales

Reviews

Write a Review

Managerial Accounting Questions & Answers

  How would you set that in an excell document

What costs are relevant to each of the three alternatives: offshoring, relocating functions, and automating functions?

  Cost volume profit of procter and gamble company

Procter & Gamble Company is a Cincinnati-based company that produces household products under brand names such as Gillette, Bounty, Crest, Folgers, and Tide. The company's 2006 income statement showed the following (in millions):

  What is the concept of current rate method of translation

What is the concept of current rate method of translation and temporal method of translation? How does balance sheet exposure differ under these two methods?

  Airassurance corporation''s activity variances and revenue

Prepare a flexible budget performance report showing AirAssurance Corporation's activity variances and revenue and spending variances for March.

  Account used for the net method an asset

Is the account used for the net method an asset, liability, revenue, or expense?Which method makes more theoretical sense - the gross method or the net method?

  How much will wchc need in foundation grants the year

How much will WCHC need in foundation grants this year to make the purchase break-even financially? The Ward County Hospital Center

  Find the direct materials price and quantity variances

Compute the direct materials price and quantity variances for the year. (Indicate the effect of each variance by selecting for favourable and for unfavourable)

  How much actual customer service department cost

For performance evaluation purposes, how much actual Customer Service Department cost should NOT be charged to the operating divisions at the end of the year?

  Calculate the variable overhead efficiency variance

Fortes Inc. has provided the following data concerning one of the products in its standard cost system. Calculate the variable overhead efficiency variance

  Calculate the net income earned and the taxes

Calculate the net income earned and the taxes that would have to be paid in each year if the new venture is formed as a corporation.

  Prepare statement of cost of goods sold

Prepare statement of cost of goods sold and a statement of cost of goods manufactured for 2019, information is available for Booker Company for 2019

  Find what are the job cost sheets for each of the three jobs

Find What are the job cost sheets for each of the three jobs respectively under direct materials and direct labour. In January, Reyes Tool & Die Company

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