How many units must be sold to achieve the income level

Assignment Help Cost Accounting
Reference no: EM132837114

Problem 1: Marnan Company has fixed costs of $56,000. Its product sells for $25 per unit and variable costs amount to $15 per unit. Next year Marnan Company wishes to earn a before-tax net income that equals 10% of fixed costs. How many units must be sold to achieve this income level?

A) 560.

B) 4,107.

C) 5,600.

D) 6,160.

E) 7,040

Reference no: EM132837114

Questions Cloud

What the number of units required to break even would : If the variable costs per unit were to decrease to $7.50 per unit and fixed costs increase to $450,000, the number of units required to break even would
Suitable routine for facilitating the transition of children : Explain in what ways do you foster self-help skills and independence in children during rest routines?
Explain the present value formula : Explain the present value formula. Explain the future value formula. Explain how changing the variables in the formula will affect the investment outcome
About two forms of cell division-mitosis and meiosis : Over the last two weeks you have learned about two forms of cell division - mitosis and meiosis.
How many units must be sold to achieve the income level : Marnan Company wishes to earn a before-tax net income that equals 10% of fixed costs. How many units must be sold to achieve this income level?
What is emotional intelligence : What is Emotional Intelligence (EI)? Select two of Goleman's major dimensions of EI and discuss why they are relevant in the workplace.
Chromosomal theory of inheritance : How does the Chromosomal Theory of Inheritance helped to advance our understanding of genetics?
Confidence interval for the population proportion : Using Excel, construct a 95% confidence interval for the population proportion of people in New Hampshire with cholesterol levels over 200.
What is the margin of safety as a percent of sales : Mar Co. has fixed costs of $36,000 and a contribution rate of 24%. If predicted sales are $200,000, what is the margin of safety as a percent of sales?

Reviews

Write a Review

Cost Accounting Questions & Answers

  Determine how well blh performed in terms of cost control

Bella Lugosi Holdings, Inc. (BLH), has collected the following operating information below for its current month's activity. Using this information, prepare a flexible budget analysis to determine how well BLH performed in terms of cost control. A..

  What would be the apr if the card compounds every quarter

What would be the APR (Nominal rate per year) if the card compounds monthly? What would be the APR if the card compounds every quarter?

  Find the breakeven point in units for each product

find the breakeven point in units for each product - The company's fixed costs are $2,040

  Calculate the basic eps for covid ltd for the year

Calculate the basic EPS for COVID Ltd for the year ending 30 June 2019. COVID Ltd is an Australian listed company. The results for the financial year ending 30

  Questionthe subsequent transactions involving intangible

questionthe subsequent transactions involving intangible assets of minton corporation occurred on or near december 31

  What depreciation expense should be recorded on this asset

On May 1, 2021, Oriole Company sells office furniture for $303600 cash. What depreciation expense should be recorded on this asset in 2021

  How many balls will have to be sold next year

Compute (a) the CM ratio and the break-even point in balls, and (b) the degree of operatingleverage at last year's sales level.

  How income will change by

Variable costs equal to 75% of sales and total fixed costs equal to 15% of sales. Based on variable costing, if sales change by P1.00, income will change by

  What is the net impact on the cash flow statement

During the year a company made sales of $75,000. What is the net impact on the cash flow statement for the current year for all of these transactions.

  How many machines should the manager purchase initially

How many machines should the manager purchase initially? The machines will be used to manufacture a new gear for which there is increased demand.

  Amount realized and the character by solar corporation

Determine the amount realized and the character by Solar Corporation on the sale - Determine the character and amount of Samantha's gains and losses

  Find what is the accounts receivable balance on dec

Prepare a schedule of expected cash collections from sales by month and in total for the fourth quarter. What is the accounts receivable balance on Dec.31?

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