How many units does the company need to sell

Assignment Help Accounting Basics
Reference no: EM131900558

Problem

Last year a company had an operating income of $500,000. They sold a total of 150,000 units and received a contribution margin per unit of $20.00. If fixed costs decrease by $200,000 and contribution margin per unit decreases by 15%, how many units does the company need to sell this year in order to breakeven?

Reference no: EM131900558

Questions Cloud

Calculate the amount of dividends that would have to be paid : Calculate the amount of dividends that would have to be paid on the preferred stock before a cash dividend could be paid to the common stockholders.
Explain the purpose of an information system : Describe how information systems may be used to support an organization and enhance productivity and decision making.
Write a reflection paper about the article : Write a short 2-3-page essay reflecting on the article presented: Is Kissing a "State Sponsor of Terrorism" a "Terrorist Act"?,
What will be the return on investment next year : Last year sales were $140,000, net operating income was $65,000, and average operating assets were $300,000. What will be the return on investment next year?
How many units does the company need to sell : Last year a company had an operating income of $500,000. How many units does the company need to sell this year in order to breakeven?
How much should laura include in taxable income as alimony : Laura and Leon were granted a divorce in 2011. How much should Laura include in her 2016 taxable income as alimony?
Why the patient protection and affordable care act exists : Please explain why the Patient Protection and Affordable Care Act exists and if the main focus is access, cost, or quality.
Explain why that theoretical perspective best describes : Explain why that theoretical perspective best describes the relationship between social class and health. What are the perspective's main strengths?
What amount of sales will be necessary : If fixed expenses increase by $10,800 next year, what amount of sales will be necessary in order for the company to earn a profit of $88,000?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare a memo to peggy anderson

You have been asked to prepare a memo to Peggy Anderson, CPA, an audit partner at your firm.

  Seran company has contacted truckel inc with an offer to

1 an activity that has a direct cause-effect relationship with the resources consumed is an 2 a well-designed

  Complete vertical and horizontal analysis

Complete vertical and horizontal analysis for the 2 most recent annual reports. What does this financial information reveal about company's overall performance

  Prepare both of the journal entries to record interest

On January 1, 2010, Carla Industries issued 10% bonds dated January 1, 2010, which has a face amount of 25 million. The bonds mature in 2020. The market rate of interest 12%. The interest is paid on June 30 and December 31.

  How many bicycles should the company purchase in may

Adams Sporting Goods sells bicycles throughout southeastern United States. On the basis of the information presented, how many bicycles should company purchase

  Discuss the capital projects fund in the general journal

transactions in the Capital Projects Fund in the general journal for the following transactions

  What is the budgeted operating income

Above 1,200 bicycles, monthly fixed costs are $55,000. What is the budgeted operating income at a level of 1,300 bicycles per month

  Prepare the entries at the date of issuance

Two years later the bond is converted when the market value of the stock is $150. Prepare the entries at the date of issuance and at the date of conversion.

  How will materiality influence auditors reporting decisions

Basic Reports. The concepts of materiality and pervasiveness are important to auditors in examinations of financial statements and expressions of opinion.

  Determine the effective annual interest rate on a given line

Determine the effective annual interest rate on a $25,000 line of credit with an annual percentage rate of 8.75% compounded monthly.

  Compute the figure to be charged in the income statement

Compute the figure to be charged in the income statement and the figure to be disclosed in the balance sheet of the scheme as a net pension liability

  Does a conversion process occur in manufacturing companies

Does a conversion process occur in manufacturing companies only? Why or why not?

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