Determine the break-even point in units and dollars

Assignment Help Financial Accounting
Reference no: EM131332976

Exercise 1: Fixed versus variable cost behavior

Nasenko Company's cost and production data for two recent months included the following:
                           March    April
Production (units)   200       400
Rent                     $1,800   $1,800
Utilities                  $ 600    $1,200

Required

a.Separately calculate the rental cost per unit and the utilities cost per unit for both March and April.
b.Identify which cost is variable and which is fixed. Explain your answer.

Exercise 2: Break-even point

Agassi Corporation sells products for $90 each that have variable costs of $60 per unit. Agassi's annual fixed cost is $450,000.

Required

Determine the break-even point in units and dollars.

Exercise 3: Desired profit

Lindo Company incurs annual fixed costs of $80,000. Variable costs for Lindo's product are $40 per unit, and the sales price is $64 per unit. Lindo desires to earn an annual profit of $40,000.

Required

Determine the sales volume in dollars and units required to earn the desired profit.

Attachment:- Project.xlsx

Reference no: EM131332976

Questions Cloud

Symmetric sealed bid auction with independent private values : Prove that in a symmetric sealed-bid auction with independent private values in which all the buyers are risk-seeking, and have the same strictly convex, differentiable, and monotonically increasing utility function.
Principle of the conservation of mechanical energy : Applying the principle of the conservation of mechanical energy in the presence of dissipative forces, determine its final speed as it reaches the bottom of the slope.
Based on the corporate valuation model : Based on the corporate valuation model, Morgan Inc.'s total corporate value is $200 million. The balance sheet shows $90 million of notes payable, $30 million of long-term debt, $40 million of preferred stock, and $100 million of common equity. The c..
Discuss key cultural factors that may influence diagnosis : Identify at least one differential (alternate) diagnosis for the principal and secondary diagnoses. Discuss key cultural factors that may influence diagnosis and treatment
Determine the break-even point in units and dollars : Agassi Corporation sells products for $90 each that have variable costs of $60 per unit. Agassi's annual fixed cost is $450,000. Determine the break-even point in units and dollars.
Which variable has higher forecasting risk : We are evaluating a project that costs $864,000, has an eight-year life, and has no salvagevalue. Assume that depreciation is straight-line to zero over the life of the project. Perform sensitivity analysis on variable costper unit and fixed costs. W..
Can there be more than one equilibrium : Can there be more than one equilibrium for an incentive-compatible direct selling mechanism? If your answer is yes, present an example.
Input in the push-off : The initial velocity of both was v0, and after the push-off the astronaut with the mass m1 moves with the velocity v1 in the same direction. How much energy was input in the push-off?
What is the impact if airline now repatriates total funds : For an airline operating in Venezuela for several years, if the firm has accrued earnings of $500 million (USD) at an exchange rate of 12.5 bolivars per dollar, what is the impact if the airline now repatriates the total funds to the U.S. at the Vene..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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