Compute the breakeven point in sales units

Assignment Help Accounting Basics
Reference no: EM131997491

Question - Techno Designs produces head covers for golf clubs. The company expects to generate a profit next year. It anticipates fixed manufacturing costs of $126,500 and fixed general and administrative expenses of $82,030 for the year. Variable manufacturing and selling costs per set of head covers will be $4.65 and $2.75, respectively. Each set will sell for 13.40.

Compute the breakeven point in sales units.

Compute the breakeven point in sales dollars.

If the selling price is increased to $14 per unit and fixed general and administrative expenses are cut by $33,465, what will the new breakeven point be in units?

Prepare a graph to illustrate the breakeven point computed in (2).

Reference no: EM131997491

Questions Cloud

Most important democratic institution : Tocqueville argued that the freedom of the press was the most important democratic institution.
Discuss about the stock trading system : The simulation should be performed day by day (probably using for loop) but not necessary to buy or sell every day.
Determine the most economical order quantity : New England Co. predicts that it will use 360,000 gallons of material during the year. Determine the most economical order quantity by using the EOQ formula
Civil war and the ratification of the thirteenth : With the end of the Civil War and the ratification of the Thirteenth, Fourteenth, and Fifteenth Amendments, it seemed like African Americans
Compute the breakeven point in sales units : Techno Designs produces head covers for golf clubs. Compute the breakeven point in sales units. Compute the breakeven point in sales dollars
Analysis the reward-to-risk ratios of y and z : Stock Y has a beta of 1.15 and an expected return of 13.20 percent. Stock Z has a beta of .90 and an expected return of 10 percent.
What is the geometric average return for this time period : A stock had returns of 26 percent, 14 percent, 8 percent, 10 percent, -9 percent, and -5 percent over the past six years.
Determine the unrealized holding gain or loss on the note : Shonen Knife Corporation has elected to use the fair value option for one of its notes payable. Determine the unrealized holding gain or loss on the note
Show what the balance sheet will look like : The stockholders' equity portion of Brimstone Tire Company follows: Common Stock (2.0 million shares at $10 par) $20,000,000 .

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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