Construct a cost-volume-profit chart

Assignment Help Accounting Basics
Reference no: EM132762612

Problem - Wyatt Inc. expects to maintain the same inventories at the end of the year as at the beginning of the year. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. It is expected that 60,000 units will be sold at a price of $20 per unit. Maximum sales within the relevant range are 70,000 units.

Required -

1a. What is the contribution margin ratio?

1b. What is the unit contribution margin?

2. Determine the break-even point in units.

3. Construct a cost-volume-profit chart, indicating the break-even point.

4. Construct a profit-volume chart, indicating the break-even point.

5. What is the margin of safety?

Reference no: EM132762612

Questions Cloud

Document for use in improving emergency planning : Is this a practical document for use in improving emergency planning? Why or why not?
What is the bond nominal yield to call for keenan industries : What is the bond's nominal yield to call for Keenan? The bond has a 6.50% nominal yield to maturity, but it can be called in 3 years at a price of $1,085.
Find what is the portfolio beta for jim angel : What is the portfolio's beta? Stock B with beta of 1.70, $95,000 invested in Stock C with beta of 2.95, $75,000 invested in Stock D.
What is ritter required rate of return : Beta of 1.95, the risk-free rate is 3.75%, and the required return on the market portfolio is 11.50%. Using CAPM, what is Ritter's required rate of return?
Construct a cost-volume-profit chart : The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. Construct a cost-volume-profit chart
Describe evolution of the virtual organization : Describe the evolution of the virtual organization. What are the pros and cons associated with this design?
How trump administration's response to current corona virus : Discuss how the Trump Administration's response to the current Corona Virus (Covet 19) has exacerbated structural and systemic racism and environmental
Compute the price and efficiency variances for peterson food : Compute the price and efficiency variances for Peterson Foods. Peterson Foods manufactures pumpkin scones. For January 2014, it budgeted to purchase
Communication strategy that fosters change : You will create a communication strategy that fosters change and innovation in an organization.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What likely happened to the market price of the shares

On January 1, 2020, Waldorf Corporation granted 40,000 options to key executives. What likely happened to the market price of the shares in 2023

  What can you conclude about the mean contribution

Produce a line chart for each of the treatment conditions (punishment and no punishment) with the average contribution of each group as the vertical axis.

  Your company provides you with a car you are told only to

your company provides you with a car. you are told only to drive in dade and broward and only to use the car for

  How does market segmentation differ from market targetingin

how does market segmentation differ from market targeting?in the context of marketing what is a products position? how

  How much is net income

Alpha company provided the following data concerning its income statement: sales, $865,000; How much is net income

  Prepare excel workbook that contains a separate spreadsheet

Prepare an Excel workbook that contains a separate spreadsheet for each individual government entity (Sacramento City)

  Nanner corporation is trying to determine how long it takes

nanner corporation is trying to determine how long it takes for one product to pass through the production process. the

  Compute the estimated amount of uncollectible accounts

Compute the estimated amount of uncollectible accounts based on the above classification by age groups

  Chabud corporation uses the weighted-average method in its

chabud corporation uses the weighted-average method in its process costing system. this month the beginning inventory

  What is the total cost

When 720 croissants are baked, the average cost is $.65. What is the total cost when 670 croissants are baked

  What amount of gain each olinto corp shareholder recognize

Each shareholder's tax basis in Olinto Corp. stock was $16,500. What amount of gain should each Olinto Corp. shareholder recognize on liquidating distribution

  What is a disaster recovery plan

What is a disaster recovery plan and how can a company implement such a plan and ensure it will be effective

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