User Account

All Pages

Compute for the total fixed cost of the company

Assignment Help Accounting Basics
Reference no: EM132731187

Question - Armin Sole Proprietorship just started this 2020. Since the business is not fully operational, the proprietor wants to ask your advice in determining the level of units needed to make the business breakeven.

Here are the financial data for you to analyse:

1. Selling price per unit is $80.

2. Variable cost per unit is $50.

3. The insurance of the company includes $1,000.

4. Rent of the store amounts to $5,000.

5. Depreciation of the equipment is $3,000.

Required -

1. Compute for the total fixed cost of the company.

2. Compute for the contribution margin percentage.

2. Compute for the breakeven sales in units.

3. Compute for the breakeven sales amount in $.

Reference no: EM132731187

Questions Cloud

Juvenile justice history : Discuss the five periods of juvenile justice history and which period you think was the most influential to the evolution of the juvenile justice system.
How this significant structure of foreign exchange markets : How this significant structure of Foreign Exchange Markets involve in Global Markets?
What was the times-interest-earned ratio : The previous year's dividends per share were $1.70. Assuming a 34 percent income tax rate, what was the times-interest-earned ratio
Exercised by personnel in the criminal justice system : You evaluate liability, accountability, and economic impact in concert with discretionary authority exercised by personnel in the criminal justice system.
Compute for the total fixed cost of the company : The insurance of the company includes $1,000. Depreciation of the equipment is $3,000. Compute for the total fixed cost of the company
Which is the correct order an accountant should consider : Which is the correct order an accountant should consider eachwhen facing a difficult decision? Public, Client, Employer, Professional, Individual.
How much should the university record as income : The income from the trust will go to the state university. How much should the university record as income in the year that the trust is established?
Fifth amendment protection against self-incrimination : Define and explain the scope of the Fifth Amendment protection against self-incrimination. In your opinion, is this an important right?
What is the duration of a bond : What is the duration of a bond with a par value of $10,000 that has a coupon rate of 6.5% annually and a final maturity of two years

Reviews

Write a Review

Accounting Basics Questions & Answers

  Demonstrate the favorable effect of leverage

Determine What is whether leverage (from long-term debt) benefits Rose's shareholders. (Hint: Examine ROCE with and without leverage.)

  Find variable overhead spending variance for month

Suski Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). What was the variable overhead spending variance for the month?

  What amount of loss on factoring should be recognized

The entity had previously established an allowance for doubtful accounts of P250,000 in connection with such accounts. What amount of loss on factoring

  Explaining the purpose of the cash flow statement

Prepare a letter to Renee explaining the purpose of the cash flow statement and why the banker is interested in this financial statement

  Primary uses of a standard cost system

What are the three primary uses of a standard cost system? What is the difference between ideal standards and currently attainable standards?

  Prepare an analysis showing the total cost saving

Manson will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving

  Calculate the direct labor hours required for production

Calculate the direct labor hours required for production that is 10 percent higher than expected. Calculate the direct labor hours required for production.

  Calculate its yield as quoted in the market

Lett's commercial paper is presently selling at a discount. It sells for 97.29 of par and matures in 120 days. Calculate its yield as quoted in the market

  What are the consolidated sales and cost of goods sold

Top company holds 90% of Bottom Company's common stock. In current year, Top reports sales of $800,000 and Cost of Goods sold of $600,000. For this sam period,

  Can aubry deduct the expenditure

Aubry, a cash basis and calendar year taxpayer, decides to reduce his taxable income for 2019 by buying $65,000. Can Aubry deduct the expenditure

  Journalize the following transactions for the evans company

journalize the following transactions for the evans company. assume the company uses perpetual inventory system.1 sells

  If the effective rate is if the effective rate

If the effective rate is 12% If the effective rate is , compute the nominal rate?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd