User Account

All Pages

What is the breakeven sales amount in terms of dollars

Assignment Help Accounting Basics
Reference no: EM131761543

Question - Will you please help me with this problem? Please show the work so that I can understand it.

Please use the following data from XYZ, Inc. manufacturer of an industrial air compressor to answer the questions below:

Based upon a production of 5,000 units, the company data is as follows:

Cost for 5,000 Units

Variable materials............................................................          $100

Variable labor............................................................................... $150

Variable factory overhead........................................................... $50

Fixed factory overhead..........................................................     $200

Variable marketing costs........................................................   $50

Fixed marketing costs............................................................     $140

a)  Assuming the units sell for $800, what is the breakeven sales amount in terms of dollars and units?

b) If unit sales could be increased to 5,500 by lowering the price to $750, would the company be better off than it is now (at 5,000 units)? Explain.

Reference no: EM131761543

Questions Cloud

Consolidated investments are accounted for under the equity : Identify any of your findings that were required to be accounted for retrospectively. Do note that consolidated investments are accounted for under the equity
Prepare adjusting journal entry to record bad debt expense : Wildhorse Co. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible.
Identify and discuss potential elements of commonality : Identify and discuss potential elements of commonality. Identify and discuss potential elements of distinction.
Discuss four target markets that the company has selected : Assess the four target markets that the company has selected. Target Market Buying Process Purchasing Requirement Pertinent Information.
What is the breakeven sales amount in terms of dollars : Based upon a production of 5,000 units, the company data is as follows: Assuming the units sell for $800, what is the breakeven sales amount in terms of dollars
Determine the missing amounts : Determine the missing amounts. (Round answers for Total Interest to 0 decimal places, e.g. 825. Round annual interest rate to 0 decimal places, e.g. 15%.)
What is the approximate average annual cost of turnover : If the average turnover rate for employees is ten per year, what is the approximate average annual cost of turnover
Determine the role of patient-centered care : Select a health care provider with which you are familiar and determine the role of patient-centered care by that provider, its impact, and the best way.
What is the differential revenue from the acceptance : Jacoby company received an offer from an exporter for 30,000 units of a product at $15 per unit. What is the differential revenue from the acceptance of offer

Reviews

Write a Review

Accounting Basics Questions & Answers

  Budgeted variable factory overhead rate

Davie Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable factory overhead rate is $6.00 per direct labor-hour; the budgeted fixed factory overhead is $92,000 per month, of which $16..

  Overapplied amount assuming the amount is material

Luca Company overapplied manufacturing overhead during 2006. Which one of the following is part of the year end entry to dispose of the overapplied amount assuming the amount is material?

  Explain process the merchandise returns

Operational Audit: Customer Complaints. Danny Deck, the director of internal auditing for Rice Department Stores, was working in his office one Thursday.

  Determine the manufacturing overhead variances for may

Determine the manufacturing overhead variances for May. Identify the business reasons that might have led the company's product manager to change to the new and more expensive raw materials.

  Decision rules payback-npv-irr

Which of the decision rules (payback, NPV, or IRR) do you think is the best rule for a firm to use when evaluating projects? Be sure to justify your choice.

  An office building and its equipment are insured to

an office building and its equipment are insured to 710000.the present annual insurance premium is 0.85 per 100 of

  Stephens industries is contemplating four projects project

stephens industries is contemplating four projects project p project q project r and project s. the capital costs and

  Relevant facts concerning the estate

A woman recently died with only probate assets. Under the term of her will, she left her entire probate estate outright to her husband. The following are relevant facts concerning the estate.

  Applications case preparing and using pro forma statements

Nancy Pinedo and Justin Johnson recently graduated from the same university. After graduation they decided not to seek jobs at established organizations but, rather, to start their own small business hoping they could have more flexibility in thei..

  Sauna''s mark-up percentage

Sauna Company has average invested capital of $900,000 and a target ROI of 20%. The company determines its markup percentage based on absorption costing. Manufacturing costs per unit are as follows: direct materials $6, direct labour $8, variable ove..

  What is the difference between notes payable and

what is the difference between notes payable and notes

  Aliant corporation sold 100000000 face value 6 bonds the

aliant corporation sold 100000000 face value 6 bonds. the bonds mature in 20 years and pay interest semiannually. the

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