Determine the unit sales volume required to earn a profit

Assignment Help Accounting Basics
Reference no: EM131945827

Question - High-Low Cost Estimation and Profit Planning

Comparative 2007 and 2008 income statements for Dakota Products Inc. follow:

DAKOTA PRODUCTS INC. Comparative Income Statements For Years Ending December 31, 2007 and 2008

2007 2008

Unit sales 5,000 8,000

Sales revenue $60,000 $96,000

Expenses (64,000) (76,000)

Profit (loss) $(4,000) $20,000

(a) Determine the break-even point in units.

(b) Determine the unit sales volume required to earn a profit of $5,000.

Reference no: EM131945827

Questions Cloud

Determine the cost allocated to wireless communications : Nokia Inc. has two user departments, Wireless Communications & Digital Communications. Determine the cost allocated to Wireless Communications
Raise the ph of the solution : How many grams of NaOH would you have to add to raise the PH of the solution to 4.22?
What is the probability of an up move : A binomial tree model is used to value an option on the Dow Jones Industrial Average (DJIA) index. The dividend yield is 3% per annum.
Which two candidates are likely to win : Bilkis Brans has 20,000 outstanding shares with four shareholders. Ester owns 9,000 shares, Mendez owns 4,000 shares, Judy owns 4,000 shares.
Determine the unit sales volume required to earn a profit : Question - High-Low Cost Estimation and Profit Planning, Determine the unit sales volume required to earn a profit of $5,000
Find what would be the weight used for equity : Bill's Boards has 20.8 million shares of common stock outstanding, 4.8 million shares of preferred stock outstanding, and 28.00 thousand bonds.
Calculate the mass of the gas remaining : Calculate the mass of the gas remaining in the cylinder if it were opened and the gas escaped until the pressure in the cylinder was equal to the atmospheric
Compute allowable itemized deductions for the clines : Steve and Judy Cline are married, have two dependents, and file a joint return for 2012. Compute allowable itemized deductions for 2012 for the Clines
What is the empirical formula of the xenon fluoride : What is the empirical formula of the xenon fluoride in the original sample? (Note: Xenon fluorides contain only one xenon atom per molecule.)

Reviews

Write a Review

Accounting Basics Questions & Answers

  The effects on the accounting equation

When a company buys equipment for $151,000 and pays for one fourth in cash and the other three fourths is financed by a note payable, which of the following are the effects on the accounting equation?

  Calculate the unit cost and the total cost for lima company

Lima Company manufactured 15,000 units of product last month and identified. Calculate the unit cost and the total cost if 21,000 units are produced next month.

  Points of a continuum of potential solutions

Consider the purchase of a new PC to be used by you at your work (or by you at a job that you would like to have). Describe in detail three alternatives for this new PC that represent the low, middle, and high points of a continuum of potential so..

  Change from fair value to equity method on january

On the books of Martin Company prepare all journal entries in 2009, 2010, and 2011 that relate to its investment in Renner Corp., reflecting the data above and a change from the fair value method to the equity method.

  Cash flows as either investing activities

Identify these cash flows as either investing activities (I) or financing activities (F).

  Record the treasury stock transactions

Record the treasury stock transactions (given below) under the cost method of handling treasury stock; use the FIFO method for purchase-sale purposes.

  Determine how much income must be reported by each

Identify the taxpayers who must pay tax on the partnership income and determine how much income must be reported by each

  What will the effect on the overall income

If the product line is dropped, $4000 of the fixed costs will be avoided, What will the effect on the overall income be if the product line is dropped

  Calculate the current ratio and debt to assets ratio

Did the company's level of financial risk increase or decrease from 2009 to 2010?Explain.

  Gain or loss on the basis of new property

Elizabeth's property had an adjusted basis of $9000 and a fair market value of $10,500, and Elizabeth gave Debbie $4500 in cash. Determine Debbie's and Elizabeth's realized gain of loss, recognized gain or loss and the basis in their new property.

  Itify how the sarbanes-oxley act of 2002 changed the

identify how the sarbanes-oxley act of 2002 changed the audit environment for auditors.identify and explain new

  Prepare the net cash provided by operating activities

Prepare the net cash provided by operating activities section ofthe company's statement of cash flows for the year endedDecember 31, 2008 using the indirect method.

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