What is the break-even sales volume

Assignment Help Accounting Basics
Reference no: EM132030057

Question - Thomlinson Company is considering the development of two products: no. 765 or no. 766. Manufacturing cost information follows.


No. 765

NO. 766

Annual Fixed Costs

$250,000

$350,000

Variable cost per unit

$35

$25

Regardless of which product is introduced, the anticipated selling price will be $60 and the company will pay a 10% sales commission on gross dollar sales. Thomlinson will not carry an inventory of these items.

A. What is the break-even sales volume (in dollars) on product no. 766?

B. Which of the two products will be more profitable at a sales level of 20,000 units?

C. At what unit-volume level will the profit/loss on product no. 765 equal the profit/loss on product no. 766?

Reference no: EM132030057

Questions Cloud

What rate should rrrs use to discount the cash flows : Long term bonds are currently returning 3.9%. What rate should RRRS use to discount the cash flows of the assets
Oasis b is 6.0 km due east of oasis a : Oasis B is 6.0 km due east of oasis A. Starting from oasis A, a camel walks 24 km in a direction 15.0° south of east and then walks 30 km due north.
Is gilgamesh a virtuous character : Is Gilgamesh a virtuous character? What is the crucial point for his transformation from a tyrant to one who seeks knowledge?
Calculate the speed of the bullet immediately : a. Calculate the speed of the bullet immediately before the impact.
What is the break-even sales volume : Thomlinson Company is considering the development of two products: no. 765 or no. 766. What is the break-even sales volume (in dollars) on product no. 766
How would you describe the tone of the piece : What style does the author use (for example, one way an author might satirize is by including a lot of irony, hyperbole, and unrealistic scenarios)?
Force of gravity acting upon a typical person : How much weaker (or stronger) is the force of gravity acting upon a typical person at the surface of the Earth relative to the force of gravity acting
Determine the initial speed of the projectile : (a) Determine the initial speed of the projectile. (b) Determine the total time the projectile was in flight.
Short introduction about yourself and your interests : Unicaf meaning - Write a Word or a PDF document, a short introduction about yourself and your interests in the form of a short paragraph

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much gross income must she report for federal income tax

If Marsh distributes $750,000 to Mary on December 31, how much gross income must she report for Federal income tax purposes?

  Complete the following table using xs to indicate each

The following ledger accounts are for Afocentric Service Corporation: Complete the following table, using X's to indicate each account's classification and normal balance (whether a debit or a credit increases the account).

  Prepare a common-size income statement and balance sheet

decide a whether sanfields ability to pay debts and to sell inventory improved or deteriorated during 2011 and b

  The standards for a product call for 25 pounds of a raw

the standards for a product call for 2.5 pounds of a raw material that costs 6.10 per pound. last month 30000 pounds of

  What is the purpose of payables cut-off testing

What is the purpose of payables cut-off testing? What audit approach is generally used for property, plant, and equipment? Why

  The purpose of part iii is to obtain an understanding of

the purpose of part iii is to obtain an understanding of internal control and assess control risk for pinnacle

  Cisco inc reported the following in its income statement

cisco inc. reported the following in its income statement for the year ended july 26 2008 basic earnings per share of

  The company is at a critical juncture from issues

The company is at a critical juncture from issues such as high attrition of the accounting staff, current economic conditions, and increased competition.

  Producers focus less on quarterly earnings per share and tax

The chairman of the FASB at one time noted that "the flow of standards can only be slowed.

  Compare the amount of overhead allocated to one mobile safe

wilkins corporation manufactures safes-large mobile safes and large walk-in stationary bank safes. as part of its

  Compute the flexible- budget variance

Compute the flexible- budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead

  What is his miscellaneous itemized deduction

What is his miscellaneous itemized deduction (before the floor), assuming Richard is an employee and is not reimbursed, under the following two circumstances

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