User Account

All Pages

How many widgets will need to sell in the year to break even

Assignment Help Financial Accounting
Reference no: EM132547852

You are the accountant for Mr Brown's Business. Mr Brown makes and sells widgets to local farmers produced in a rented warehouse (warehouse rental costs are $50,000 per year). Currently Mr Brown employs Mr Green to look after the whole operation and pays him a salary of $100,000 per year. Currently widgets are the only product line Mr Brown manufactures.

Currently:

Production and sales information for the year are as follows.

Maximum production capacity of the warehouse: 25,000 units

Current production capacity: 20,000 units

Selling price per unit: $20

Raw materials cost per unit: $10

Variable labour cost per unit: $2

Fixed production costs: $40,000

Question a) Advise Mr Brown how many widgets he will need to sell in the year to break even

Reference no: EM132547852

Questions Cloud

What is the budgeted total cash inflows for the year : What is the budgeted total cash inflows for the year? You are an accountant that has been appointed to the help Mr Lloyd assess his next year
Starting business is risky endeavor : Starting a business is a risky endeavor, but staying in business can be just as challenging. What are the core areas that they are leveraging?
Observation regarding a species of nematode : Ecologists have recently made an observation regarding a species of nematode (round worm) commonly found in Australian soils
Some things that helped you pay for college : what are some things that helped you pay for college. What advice would you give freshman about saving money throughout college?
How many widgets will need to sell in the year to break even : Advise Mr Brown how many widgets he will need to sell in the year to break even. Maximum production capacity of the warehouse
Develop a system to review performance systems : Develop a system to review performance systems and processes to assess progress in achieving profit and productivity plans and targets
Compute the interest rate implicit in the lease : Using the provisions of IFRS 16, Compute the interest rate implicit in the lease (rounded off to the nearest integer) using trial rates of 3% and 7%.
How this inhibition of sodium ions in the loop : One type of diuretic given to people with high blood pressure, renal disease and congestive heart failure are thiazide-type diuretics
How to compute present value received at start of every year : How to Compute present value of $10,000 received at start of every year for 20 years if the interest rate is J1 = 12% p.a. and if the first payment of $10,000

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the problem with this coding system

What is the problem with this coding system? Provide at least two suggestions on how to improve this coding system and is it acceptable to have multiple vendor accounts for the same vendor? Why or why not?

  Income from continuing operations before income taxes

Canton Corporation reported the following items in its adjusted trial balance for the year ended December 31, 2016: Prepare the December 31, 2016, income statement for Canton Corporation, starting with income from continuing operations before income ..

  What will the variable expense per unit be

The selling price of a particular product is $38.00 per unit, fixed costs total $175,000, and the breakeven sales in dollars is $875,000, what will the variable expense per unit be?

  What are steps to determine the straight-line depreciation

What are the steps to determine the straight-line depreciation? How does this differ from units of production method or the double declining method?

  Division of opinion is a classic example of cultural

Explain why this division of opinion is a classic example of cultural relativism?

  Leases demolition equipment to credit worthy adults

A Company leases demolition equipment to credit worthy adults who wish to destroy the homes a competitor. A Company has agreed to lease a crane with a wrecking ball to Barbara. Ms. Bush has formed a limited liability corporation, BB, Inc., to lease t..

  What is the coupon rate and the current yield

Assume that a bond with five years to maturity, a par value of $1,000, and a $60 annual coupon payment costs $1,100 today. What is the coupon rate? What is the current yield?

  How do we record these shares and are they part of debt

Dividends were declared and paid by December 2017 and were recorded through retained earnings. How do we record these shares and are they part of debt

  Calculate expected net present value of the project

Caravan Gaming Company is interested in developing a new facility in Brazil. The company estimates that the project would require an initial investment of $31 million. The company expects that the project will produce positive cash flows of $5,050,00..

  Determine the transaction price for each of the contracts

Determine the transaction price for each of the contracts under IFRS 15. A company enters into a contract to construct an asset for a customer.

  Discuss the ways that you are going to incorporate

Discuss the ways that you are going to incorporate the transferable skills - The self-reflection should be the last few pages of your exemplar project

  Determine the beginning balance of finished goods inventory

Presented is selected information from Till's April income statement and statement of cost of goods manufactured. Use T-accounts to determine the beginning balance of finished goods inventory on April 1.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd