Reference no: EM132562530

Question 1: Rice Company has a unit selling price of $520, variable costs per unit of $286, and fixed costs of $163,800. Compute the break-even point in units using (a) the mathematical equation and (b) contribution margin per unit.

Question 1: Acorn Corp. had total variable costs of $180,000, total fixed costs of $170,000, and total revenues of $300,000. Compute the required sales in dollars to break even.

Question 1: For Flynn Company, variable costs are 70% of sales, and fixed costs are $195,000. Management's net income goal is $75,000. Compute the required sales in dollars needed to achieve management's target net income of $75,000. (Use the contribution margin approach.)

Question 1: For Stevens Company, actual sales are $1,000,000 and break-even sales are $840,000. Compute (a) the margin of safety in dollars and (b) the margin of safety ratio.

Question 1: Deines Corporation has fixed costs of $480,000. It has a unit selling price of $6, unit variable costs of $4.40, and a target net income of $1,500,000. Compute the required sales in units to achieve its target net income.

Question 1: NNN Company had $210,000 of net income in 2013 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000. Management expects per unit data and total fixed costs to remain the same in 2014. The president of NNN Company is under pressure from stockholders to increase net income by $52,000 in 2014.

Instructions

Compute the number of units sold in 2013.

Compute the number of units that would have to be sold in 2014 to reach the stockholders' desired profit level.

Question 1: Assume that Naylor Company sells the same number of units in 2014 as it did in 2013.What would the selling price have to be in order to reach the stockholders' desired profit level?

Question 1: In the month of March, Style Salon services 560 clients at an average price of $120.During the month, fixed costs were $21,024 and variable costs were 60% of sales. Instructions

Determine the contribution margin in dollars, per unit, and as a ratio.

Using the contribution margin technique, compute the break-even point in dollars and in units.