Determine the break-even point in dollars

Assignment Help Accounting Basics
Reference no: EM132669973

Question - The operating budget of Bea Company contains the following information:

Sales at 80% capacity $400,000

Fixed Costs $105,000

Variable Costs$260,000

Total cost $365,000

Net Income $ 35,000

a) Draw a detailed break-even chart.

b) Compute the break-even point as a percentage of capacity and in dollars.

c) Determine the net income at 40% of capacity.

d) Determine the sales volume as a percentage of capacity to generate a net income of $61,250.

e) Determine the break-even point in dollars if fixed costs are reduced by $11,200 while variable costs are changed to 72% of sales.

Reference no: EM132669973

Questions Cloud

Analyze ways the film addresses concepts you have chosen : Analyze the ways the film addresses the concepts you've chosen. How does the film illustrate the concept? i.e. In Salt of the Earth patriarchy is shown through.
Prepare the consolidation elimination journal entries : Moon Ltd is charged management fees every month by Sun Ltd. Prepare the consolidation elimination journal entries for the year ending 30 June 2020.
What are the disadvantages to the virus of replication : What are the disadvantages to the virus of replication by the host polymerase, compared with using a polymerase encoded by its own genome? Give specific example
How might hemolysis benefit a hemolytic organism : Describe a natural circumstance where Staphylococcus species of bacteria might benefit from salt tolerance.
Determine the break-even point in dollars : Determine the break-even point in dollars if fixed costs are reduced by $11,200 while variable costs are changed to 72% of sales
Difference between normative ethics and meta-ethics : In 500 words or more (no less), explain the difference between normative ethics and meta-ethics. You may use examples, but you will still need to include.
Find how much is the interest income : Interests are due semiannually every July 1 and January 1. The prevailing interest rate for this type of note is 12%. How much is the interest income in 20x1?
Which accounting information systems career path interests : Explain which accounting information systems career path interests you. Discuss why this career interests you
Compute how much carrying amount of receivable on december : Compute How much is the carrying amount of the receivable on December 31, 20x1? On January 1, 20x1, ABC Co. sold transportation equipment with a historical cost

Reviews

Write a Review

Accounting Basics Questions & Answers

  A division can sell externally for 40 per unit its variable

a division can sell externally for 40 per unit. its variable manufacturing costs are 15 per unit and its variable

  A company with an annual accounting year ending on december

a company with an annual accounting year ending on december 31 issued bonds on january 1 in the amount of 500000

  Berea company produces 2500 units each unit was expected

berea company produces 2500 units. each unit was expected to require 2 labor hours at a cost of 10 per hour. total

  What did shrek inc report as incomeor loss for period ending

In its December 31, 2014 year-end balance sheet Shrek, What did Shrek, Inc report as income/loss for the period ending December 31, 2015

  How much money does janice need now to fund

Janice believes she can invest her savings at 8% until she depletes her funds. How much money does Janice need now to fund her travels

  What is her capital loss carry forward to the next year

On March 10, 2018, she sells a painting for $2,000. Betty is the artist, and she completed the painting in 2013. What is her capital loss carry forward

  You purchased a stock one year ago at a price of 55 per

you purchased a stock one year ago at a price of 55 per share. you have received quarterly dividends of .35 a share.

  Compute the amount of retained earnings

Question - If total liabilities re $120000, total assets re $280000 and total are capitals $140000, compute the amount of retained earnings

  Basics of annual cost savings

She does remember that the machine has a projected life of 10 years. Based on these data, the annual cost savings are:

  Stratford company distributes a lightweight lawn chair that

stratford company distributes a lightweight lawn chair that sells for 40 per unit. variable expenses are 20.00 per unit

  What is the total interest income

The bonds have a par of $10,000, pay interest at a 5% annual rate and have 5 years until maturity. What is the total Interest Income

  Determine the effect that the errors will have

Beginning inventory is overstated by $7,100. Ignoring income taxes, determine the effect that the errors will have

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