How gross pro?t from selling parachute can be computed

Assignment Help Financial Accounting
Reference no: EM133207326

Problem:

Fellwell is a company producing ?ight safety parachutes for drones. The cost of producing a parachute can be breakdown into ?xed cost of $50000 per year and variable cost of $200 per parachute.

(a) Explain how gross pro?t from selling parachute can be computed.

(b) If the company sold the parachute harness at $300 per harness, what is the minimum sales quantity per month for the company to break even?

(c) If the company decides to sell the harness at $450 per harness, what is the minimum sales quantity per month to break even?

(d) What are the factors that affect whether the company could price its parachute harness at $450 instead of $300?

Reference no: EM133207326

Questions Cloud

Explain the difference between an abil : Explain the difference between an ABIL, a year end operating loss, and a business that is sold at a loss and how each would affect a clients Income Taxes.
Why southern california have earthquakes : Why do we have earthquakes here in southern California? Discuss some actions that you can take right now to help you and your family
Prepare the journal entries : These are the following transactions during the first month:
Beauty and wonder of god love for diversity : Consider for a minute the beauty and wonder of God's love for diversity. God made our world, and the people in it, so diverse and unique!
How gross pro?t from selling parachute can be computed : Fellwell is a company producing ?ight safety parachutes for drones. The cost of producing a parachute can be breakdown into ?xed cost of $50000 per year and var
Determine the cut-off value for investigation : Determine cut-off value for investigation if the controller's rule of thumb is to investigate all variances equal to or greater than 5 percent of standard cost
Identify behaviors that you would like to improve : Identify behaviors that you would like to improve or change. Using cognitive behavioral approach, explain how this behavior improves over the next three weeks
Provide a brief overview of the proposed dnp project : Provide a brief overview of the proposed DNP project. Identify all the financial benefits that will be gained as a result of the project.
Difference between strategic planning and tactical planning : HSA 405-Central Texas College-What is difference between strategic planning and tactical planning?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the payback period on the new equipment

Ferris Company has an old machine that is fully depreciated but has a current salvage value of $5,000. What is the payback period on the new equipment

  Find what amount of annual sales are required

Find What amount of annual sales are required if the owners are to earn 20 percent of their investment in property? What is the monthly breakeven level of sales

  Prepare a balance sheet as of november 30

Using the following data for Ousel Travel Service as well as the retained earnings statement prepare a balance sheet as of November 30, 2016:

  At what amount should this asset be measured

The company expects to incur selling costs of P1, 500, 000 on the disposal. At what amount should asset be measured on company's statement of financial position

  How much depreciation will they record in year one

Assuming they use time as their allocation basis and use double-declining balance depreciation, how much depreciation will they record in Year 1?

  Present value of cash flow allows an individual to asses

Toy produces a product that requires 10 standard labor hours at 5 /HR. iF Toy produces 1,000 units and uses 10,000 direct labor hours, the labor efficiency variance is. The present value of cash flow allows an individual to assess

  What would be the price of the share in five years

What would be the price of this share in five years? John West is interested in buying shares in Appen Ltd. which is growing at a constant rate of 10 per cent.

  How much is the total financial revenue over the lease term

Lease payments payable at beginning of each year is P2,000,000. How much is the total financial revenue over the lease term

  Incremental external rate of return

Based on the discounted payback method tractor A's recovery period (indicate the fraction of a year to one decimal where required - Based on the discounted payback method, tractor C's recovery period

  What was its charge for depreciation and amortization

Nicholas Health Systems recently reported an EBITDA of $25.0 million and net income of $15.8 million. What was its charge for depreciation and amortization

  Indicate the profit or loss

Assuming that the Whine Company has excess operating capacity, indicate the profit (or loss) it would realise by accepting the special order

  Identify areas in which you think could make improvements

Comparing the ratios for the company with the industry averages. Identify any areas in which you think they could make improvements

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