Predict the break even point for prodcut

Assignment Help Accounting Basics

Reference no: EM13765107

Grove Company manufactures and markets a number of products. Mangement is considering the futrue of Product A, which has not been as profitable as planned. Because this product is manufactured and market independtly from other products its total cost can be precisely measured. The plan for next year calls for a selling price of 480 dollars per unit. The fixed costs for the year are expected to be $300,000, up to the maximum capacity of 2500 units. the forcasted variable costs are $180 per unit.

Required:

a. Predict the break even point for Prodcut A in terms of [a] units and b dollars of sales.

b. Prepare an income statement showing sales, fixed costs, and variable costs for product A at the break even point.

c. Determine the sales volume in dollars that the company must acheive to earn $231,000 income for from Product A, after income taxes are assessed at 30%

Reference no: EM13765107

Questions Cloud

Modify the clsdatalayer to use a two-step process : Modify the SavePersonnel() function so that instead of just doing a single SQL INSERT operation with all the personnel data, it does an INSERT with only the FirstName and LastName, followed by an UPDATE to save the PayRate, StartDate, and EndDate ..

Did the tool recover the deleted files : Did the tool recover the deleted files? How does data recovery differ from computer forensics

Charts and conditional formatting : Explain what you believe to be the main business purpose of charts in Excel. Next, discuss whether or not you believe Excel would still be a useful tool if the charting features were removed from the application. Justify your response.

Challenge computer forensic examiners on the integrity : Hashing is very important in computer forensics. Defense experts often challenge computer forensic examiners on the integrity of their evidence

Predict the break even point for prodcut : a. Predict the break even point for Prodcut A in terms of [a] units and b dollars of sales. b. Prepare an income statement showing sales, fixed costs, and variable costs for product A at the break even point.

Treasury bonds currently have a nominal yield : Assume that 4-year Treasury Bonds currently have a nominal yield of 6.2%, and a 4-year Corporate Bonds have a nominal yield of 8.5%. If Maturity Risk Premium (MRP) on all 4-year contracts currently is 1.3%, and Corporate Bonds currently have addition..

Write a paper that target population selection : Write a paper that Target Population Selection. Your rationale for the identified target population. The method for determining an appropriate sample size.

Discrimination against a racial or ethnic group : Discrimination against a racial or ethnic group becomes a larger problem when practiced by an institution-especially a governmental one. Do you think institutional discrimination is common? What do you think it looks like?

Terms important to hrm : What was the most interesting fact or concept you learned this term that you didn't know coming into the course? Why did you find it interesting?

User Account

All Pages