User Account

All Pages

What is the break-even point in units and in sales dollars

Assignment Help Accounting Basics
Reference no: EM131763861

Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $140 per unit and has a CM ratio of 40%. The company's fixed expenses are $441,000 per year. The company plans to sell 8,000 knapsacks this year.

Required:

1. What are the variable expenses per unit?

2. Use the equation method for the following:

a. What is the break-even point in units and in sales dollars?

b. What sales level in units and in sales dollars is required to earn an annual profit of $105,000?

c. What sales level in units is required to earn an annual after-tax profit of $105,000 if the tax rate is 25%?

d. Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $7 per unit. What is the company's new break-even point in units and in sales dollars? (Do not round intermediate calculations. Round your final answers to the nearest whole number.)

3. Use the formula method for the following:

a. What is the break-even point in units and in sales dollars?

b. What sales level in units and in sales dollars is required to earn an annual profit of $105,000?

c. What sales level in units is required to earn an annual after-tax profit of $105,000 if the tax rate is 25%?

d. Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $7 per unit. What is the company's new break-even point in units and in sales dollars? (Do not round intermediate calculations. Round your final answers to the nearest whole number.)

Reference no: EM131763861

Questions Cloud

Identify which aspects of this narrative fit : Identify which aspects of this narrative fit each of the following parts of the definition of auditing
Develop leadership profile of that individual : Then, develop a leadership profile of that individual and the significant contributions they made to an organization or their respective field.
Compute the industry average for return on assets : If Nguyen and Northwest are in the same industry and the industry average for return on assets is equal to 30%, which of the following statements is true?
Lead with credibility and caring : Explain what they mean to you within a service management focused organization. Lead with Credibility and Caring, Invest in Frontline Leadership
What is the break-even point in units and in sales dollars : What is the break-even point in units and in sales dollars, What are the variable expenses per unit
What was the flexible budget variance : What was the flexible budget variance (a positive number means a favorable variance and a negative number means an unfavorable variance)?
Explain the agreement to pay stipulated amounts : For each of the following definitions, indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next.
Differentiation in an industry serve as a barrier to entry : How does differentiation in an industry serve as a barrier to entry? how does a potential new entrant going to be at a disadvantage.
Study of the of training programs for new recruits in oman : A Study of the of Training Programs for new recruits in Oman Air - To development and upgrading the employees skills in Oman Air and provide a quality services

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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