How many units must be sold to earn a profit

Assignment Help Accounting Basics
Reference no: EM132619476

Question - Based on the information below, you are required to answer the following two questions:

Sales Price 120

Variable manufacturing cost per unit 60

Variable selling cost per unit 20

Fixed manufacturing costs 180,000

Fixed selling costs 60,000

Q1. What is the break-even point in units?

a. 6,000 units

b. 4,500 units

c. 3,000 units

d. 4,000 units

Q2. How many units must be sold to earn a profit-before-tax of $40,000?

a. 3,667 units

b. 7,000 units

c. 4,667 units

d. 5,500 units

 

Reference no: EM132619476

Questions Cloud

Compute the depreciation amount for this period : The rate of depreciation is 20%. Assume ABC Ltd. applies the reducing balance method, compute the depreciation amount for this period
Determining a child or adolescent behavioral issues : For this Discussion, review this week's Learning Resources and select two of the criteria used for diagnosing psychological disorders.
How much sales revenue must be earned : Question - If the contribution margin ratio is 0.45, how much sales revenue must be earned to get a Profit after tax of $85,000
Discussing family influences on your personal attitudes : 4 page paper (APA Style) discussing the "Cultural, religious, and family influences on your personal attitudes of sexuality." The response must be typed.
How many units must be sold to earn a profit : Variable manufacturing cost per unit 60. How many units must be sold to earn a profit-before-tax of $40,000
Contrast the management styles of kalanick and khosrowshahi : Compare and contrast the management styles of Kalanick and Khosrowshahi.
Challenges to effective team management : The follow topics pose challenges to effective team management. Why? Support your presentation with appropriate reference.
Where or how would the organization expand : Where or how would the organization expand? What process would be used in determining the direction? What are the risks and upsides of the plan?
Develop and manage it systems implementation : Develop an IT Plan that designs, implements and manages the technology supporting these information systems including computing devices, storage and processing

Reviews

Write a Review

Accounting Basics Questions & Answers

  Locate the note that discusses ktm segments from

What three reportable segments does KTM have?

  Lead time analysis furry friends inc manufactures toy

lead time analysis furry friends inc. manufactures toy stuffed animals. the direct labor time required to cut sew and

  Determine cherry corporation deduction

Cherry Corporation, a calendar year C corporation, is formed and begins business on 10/1/15. Determine Cherry Corporation's deduction

  What would be the correct amount of depreciation

If Ilene Wreft Political Consulting Co. uses double-declining balance, what would be the correct amount of depreciation it should claim as of December 31, 2016

  Adjustment to record the accrued fees

What is the adjustment to record the accrued fees? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease.

  Character of the gain or loss from disposition

What is the amount and initial character of the gain or loss from disposition of the real estate? Is any of the gain unrecaptured § 1250 (25%) gain?

  What was the budgeted cost of job

At the end of 2014, Ace determined total factory overhead to have been $410,000, What was the budgeted cost of job lot #112

  Determine the dollar amount of the fy

The January 1, 2017 balance of Work-in-Process Inventory is $60,000. Use this information to determine the dollar amount of the FY 2016

  Determine the costs per unit for last year and for the year

Prepare a cost estimate for a volume level of 120,000 units of product this year. Determine the costs per unit for last year and for this year.

  What effect will this change have on the overall profits

If everything else remains the same as last period, what effect will this change have on the overall profits of the Goddard Company

  Record the cheques in the cash payments journal

FNS40615 Certificate IV in Accounting - FNSBKG402 Establish and maintain a cash accounting system - Establish and maintain an accrual accounting system

  Analyze the buying process for an online product

Every product or service has a buying process, even digital products and services. In this assignment, you will research and analyze the buying process for an online product or service, with which you (as a consumer) are familiar, from a business ..

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