User Account

All Pages

What is the break-even point in phones

Assignment Help Accounting Basics
Reference no: EM132831607

Question - Berhannan's Cellular sells phones for $350. The unit variable cost per phone is $230 plus a selling commission that is 5% of sales. Fixed costs for the period are as follows:

Manufacturing costs, $585,000

Fixed selling and administrative, $350,000

Required -

1. Calculate the total contribution margin and the contribution margin per unit if 12,000 phones are sold.

2. What is the break-even point in phones?

3. How many phones must be sold to earn target operating income of $200,000?

4. Assume the company has a target net income of $150,000 and a tax rate of 30%.

a. Calculate the target operating income.

b. Calculate the number of phones that must be sold to earn the target net income.

c. Calculate the target revenues needed to earn target net income.

Reference no: EM132831607

Questions Cloud

How much should be distributed to the ordinary shareholders : If the maximum amount available for dividend on December 31, 2010 is declared and paid how much should be distributed to the ordinary shareholders
Case study-mero computers : The Vice President of Mero Computers has recently read about the demand for computer accessories in overseas markets.
What is environmental analysis from a business standpoint : What is environmental analysis from a business standpoint? I am reading various things saying that it is marketing, and others say it is base on the entire orga
Appendix a-a day in the life : Rachel, the project manager of a large information systems project, arrives at her office early to get caught up with work before her co-workers
What is the break-even point in phones : Calculate the total contribution margin and the contribution margin per unit if 12,000 phones are sold. What is the break-even point in phones
Prepare a letter to the iad with a copy to cbsa : As Deepak's counsel, prepare a letter to the IAD with a copy to CBSA requesting an early review of Deepak's detention based on this new information.
Evaluating risk assessment for juvenile inmates : Evaluating risk assessment for juvenile inmates who are ready for placement in your facility's group home.
Analysis of the audience : In response to peers, discuss whether you agree with the analysis of the audience and how this would impact the delivery of the message.
Big 5 plus self-monitoring-risk-taking : Take the Big 5 personality test; if you speak a second language fluently, it's pretty cool to compare your results to that as well

Reviews

Write a Review

Accounting Basics Questions & Answers

  How should the transaction price be allocated

Stellar Company manufactures equipment. How should the transaction price of $1,020,000 be allocated among the service obligations

  Overhead application working backwardthe towson

overhead application working backward.the towson manufacturing corporation applies overhead on the basis of machine

  Compute Norstars earnings per share

Norstar Industries reported net income of $940,000. Compute Norstar's earnings per share for the year ended December 31, 2018

  What is the correcting entry to be made

What is the correcting entry to be made in 2010? On january 1, 2009, Steve Co. Acquired 20,000 shares of Bailey Co. For a total cost of 200000.

  Understand the factors impacting a sales budget

To help understand the factors impacting a sales budget, you are to visit three businesses with the same ownership or franchise membership. Record the selling prices of two identical products at each location, such as regular and premium gas sold ..

  What is the consolidated net income

William Corp. paid cash of P600,000 for all the outstanding shares of Kate Company. On December 31, 2016, what is the consolidated net income

  Prepare an allocation and amortization schedule for shelbys

Prepare an allocation & amortization schedule for Shelby's investment in Borner and DeNoma's investment in Shelby

  Straight-line amortization for patents

Harrel Company acquired a patent on an oil extraction technique on January 1, 2010 for $5,000,000. It was expected to have a ten-year life and no residual value. Harrel uses straight-line amortization for patents. On December 31, 2011, the future ..

  Back mountain industries bmi has two divisions east and

back mountain industries bmi has two divisions east and west. bmi has a cost-of-capital of 16.1. selected financial

  Review the given case related to pacific crossburgers inc

(Franchise Entries) Pacific Crossburgers Inc. charges an initial franchise fee of $70,000. Upon the signing of the agreement, a payment of $28,000 is due.

  Create the statement of cash flows for chocolate bakery

Create the statement of Cash flows for Chocolate Bakery for the year ended December

  Compute the labor rate and labor efficiency variances

Actual labor costs were $76,735 for 5,150 hours. Compute the labor rate and labor efficiency variances for the month of June

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