Depreciation charges of 640000 are included in the firms

Assignment Help Accounting Basics

Reference no: EM13587754

The information that follows was obtained from the accounting records of Gladstone Manufacturing during a period when the company sold 100,000 units.

Sales: $8,800,000

Variable Costs: 2,400,000

Fixed Costs: 6,016,000

Required:
A. Compute the company's per-unit contribution margin and break-even point.
B. How many units must Gladstone sell to produce a target net profit of $550,400?
C. Assume that Gladstone was able to reduce the variable cost per unit by $4. What selling price could management charge if it desired to maintain the current break-even point?
D. Depreciation charges of $640,000 are included in the firm's fixed costs of $6,016,000. If these charges were to increase by 10%, what effect, if any, would this cost increase have on the company's contribution margin?

Reference no: EM13587754

Questions Cloud

How does the statistical mechanical definition of entropy : how does the statistical mechanical definition of entropy allow a reinterpretation of the second and third law of

Calculate what the variable cost per unit would need to be : for this cost volume profit scenario the variables aresales profit 25variable cost 15fixed cost 180contribution margin

When a 200-g sample of kscn is dissolved in water in a : question when a 2.00-g sample of kscn is dissolved in water in a calorimeter that has a total heat capacity of 1.717

The lease agreement calls for georgia-atlantic to make : on june 30 2013 georgia-atlantic inc. leased a warehouse facility from ic leasing corporation. the lease agreement

Depreciation charges of 640000 are included in the firms : the information that follows was obtained from the accounting records of gladstone manufacturing during a period when

Logarithms and exponents logarithms and exponents are : logarithms and exponents are inversely related. what does this mean mathematically and how can we use an inverse to

Longitude latitude time direction and rocks please answer : please answer all of the question .. i really need it tomorrow at the same time i gave it to you .. its physical

Calorie contents of nuts a cashew nut was burned and : a cashew nut was burned and determined to have an energy value of 3.5calg. the amount of nut burned was 0.9933g. how

Management accounting only need to answer question fmax : only need to answer question f ltbrgt ltbrgtmax lenght should be around 200 words. ltbrgt ltbrgtneed answer

User Account

All Pages