What is the break-even point in units for each product

Assignment Help Accounting Basics
Reference no: EM132572377

Question - Chelonia Ltd manufactures small robot toys. It plans to introduce two products, Speedie and Spunkie. It is anticipated that the product mix will be 40% Speedie and 60% Spunkie. One unit of Speedie will be sold for $100, with variable cost equals $40. For a unit of Spunkie, the selling price will be $120 and the variable cost is $70. The fixed cost for producing the two products is $108 000.

1. What is the break-even point in units for each product?

2. The company plans to include a safety margin of $20 000 before tax. Assuming a tax rate of 30%, what should be the budgeted sales in units?

Reference no: EM132572377

Questions Cloud

Explain the roles of the random numbers in use of encryption : Explain the roles of the random numbers in the use of encryption for the security of web applications. Provide at least two references to support your initial.
Will consumers needs be different from given of enterprises : Will consumers' needs be different from those of enterprises? Who owns the data that is being served from the reputation service?
Calculate cost of preferred stock to Satellite Share Company : Sattelite Share Company plans to sale preferred stock with par value of Br. 50 per share. Calculate cost of preferred stock to Satellite Share Company
How to prepare journal entries to record the collection : Kim Ltd, whose $2,400 account had been written off as uncollectable in June, paid its account in full. Prepare journal entries to record the collection
What is the break-even point in units for each product : Chelonia Ltd manufactures small robot toys. It plans to introduce two products, What is the break-even point in units for each product
What is the face value of a three-month promissory note june : What is the face value of a three-month promissory note dated June 18, 2018, with interest at 4.5 percent if its maturity value is $950.89
How can we apply security protocol in real life situations : What encryption standard is currently recommended by NIST and why? Explain your answer with examples. How can we apply that security protocol in real life.
Solve emma taxable income for the income year : Suggest three specific ways in which Emma might be able to legally reduce her taxable income before the end of the income year.
How many kilograms of direct material should be purchased : If the 30 June inventory of materials was 5000 kg, how many kilograms of direct material should be purchased during July

Reviews

Write a Review

Accounting Basics Questions & Answers

  Make an example of the March General Journal entry

Use this information to make an example of the March 31 General Journal entry to record the factory overhead costs

  Discuss the proper accounting treatment

Discuss the proper accounting treatment, including any required disclosures, for each situation. Give the rationale for your answers

  What is a chart of accounts and why is it important

(a) What is a ledger?(b) What is a chart of accounts and why is it important?

  Providing audit documentation

To which group can a CPA provide audit documentation without being subpoenaed and without the client's consent?

  Analyze your ability to adapt to the foreign culture you

research a foreign country of your choice excluding canada with a focus on that countrys specific culture. analyze your

  Jmes anthony attorney pc began the year with total assets

james anthony attorney p.c. began the year with total assets 177000 liabilities of 112000 and owners equity of 65000.

  How much profit would each firm earn

Return to Figure. Suppose P0 is $10 and P1 is $11. Suppose a new firm with the same LRAC curve as the incumbent tries to break into the market by selling 4,000.

  Identify the cost items relevant to the make-or-outsource

What is the avoidable cost per unit if the outsourcing decision is taken? Should Rooney continue to make the product or buy it from the supplier?

  Discuss assess business risk or evaluate the likelihood

analyze the primary ways in which auditors would use the information from downgrades to assess business risk or evaluate the likelihood

  Discuss life and a revaluation surplus balance

Jarvis Corporation owned a building with a book value of $109,000 at 12/31/10. The building had a 15-year remaining life and a revaluation surplus balance

  How will reducing the provision for uncollectible accounts

Identify the parties likely to be affected by this proposed action.

  A product sells for 525 per unit and its variable costs per

a product sells for 525 per unit and its variable costs per unit are 305. the fixed costs are 1538500. if the firm

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