Determine the breakeven point in units

Assignment Help Managerial Accounting
Reference no: EM133093025

Question - Use the following information to answer questions - Sellco Company has the following information the Kayak that it sells:

Sales Price Per Unit $900.00

Less Variable Cost Per Unit $220.00

Fixed Cost $450,000.00

Tax Rate 40%

Target Profit $200,000.00

1. Based on this information, determine the Contribution Margin per unit?

2. Based on the information in Question 1, determine the breakeven point in units?

3. Based on the information in Question 1, determine the break-even point in sales dollars?

4. Based on the information in Question 1, if the company wants to make a target profit before taxes of $200,000, it would need to sell ______________ units.

5. Based on the information in Question 1, if the company wants to make an after tax profit of $200,000, it will have to sell ______________ units.

Reference no: EM133093025

Questions Cloud

How much cash is available from sale : Assume that AB Apartments is sold after year 1 for $3 million with no expenses of sale. How much cash is available (before tax) from sale
Team contract-scheduling problems : Scheduling Problems: Since this group has different time zone or working schedules, this may create communication barriers.
What is the expected market value of the firm stock : The market value of the preferred stock is $500,000. There are 100,000 shares outstanding. What is the expected market value of the firm's stock
What is the expected value of its operations : The Sunny LeFevre Company has a required rate of return of 9%. If the firm's last free cash flow was $2,000,000, what is the expected value of its operations
Determine the breakeven point in units : Sellco Company has the following information the Kayak that it sells: Sales Price Per Unit $900.00. Determine the breakeven point in units
Draw model of the way organization creates value : Draw a model of the way the organization creates value. Briefly describe its inputs, throughputs, outputs, and environment.
Created sex-based hostile work environment : The union had created a sex-based hostile work environment for three female employees.
Communication plan and project schedule : The sponsor of the project has reviewed your scope definition (goals, objectives, project structure, and stakeholders) and has approved it.
Supply chain management code of ethics : What does the Institute of Supply Chain Management (ISM) code of ethics say about accepting supplier favors and gifts?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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