User Account

All Pages

What is the new break-even point in sales revenue

Assignment Help Managerial Accounting
Reference no: EM133089894

Question - Corin Company manufactures a product called Corfic. Pertinent cost and revenue data relating to the manufacture of this product are given below:

Shs

Selling price per unit 66

Variable production cost per unit 44

Variable selling cost per unit 4

Fixed production cost (total) Shs.200,000

Fixed selling and administrative cost (total) Shs.99,000

Required -

1. Calculate the break-even sales level in shillings;

2. Suppose the company desires to make a profit of shs.195,000, what should be the output in units?

3. A new machine, which is more efficient, is installed. This machine increases the fixed production cost by 20% but reduces the variable production cost per unit by 30%. What is the new break-even point in sales revenue?

Reference no: EM133089894

Questions Cloud

Responsible for the for the services : The shared services center will have a small cadre of managers who are responsible for the following for the services they provide:
Determine expected value for each decision and event nodes : If demand is favorable, the payoff grows to P310,000 and if the response is unfavorable, Determine the expected value for each decision and event nodes
How can wearable technology change the way a company : How can wearable technology change the way a company conducts business, and an example of this.
Brief change management plan : Thinking as a change management consultant, what seems to be missing from Woolworths' approach to engagement according to change management theory/ies?
What is the new break-even point in sales revenue : This machine increases the fixed production cost by 20% but reduces the variable production cost per unit by 30%. What is new break-even point in sales revenue
What are the obstacles faced while undergoing research : What are the obstacles faced while undergoing research in this field? Elaborate on the future prospects of business history.
Improvement of the strategy literature : What is the relevance of your chosen topic to the improvement of the Strategy literature?
Should jack consider revising the current policy : Should jack consider revising the current policy? Should policy be changed once it is implemented? Will he be sending mix messages to his employees?
Csr activities on the fundamental goal : Why firms must refocus their CSR activities on the fundamental goal and provides a systematic process for bringing coherence and discipline to CSR strategies?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What the next break-even point for flying cloud co

Increases in the salaries of factory supervisors and property taxes for the factory will increase fixed costs by 4%. What the next break-even point for Flying

  Would be ethical for perlman not to report the inventory

According to the IMA's Statement of Ethical Professional Practice, would it be ethical for Perlman not to report the inventory as obsolete?

  What approach should be adopted

From an efficiency perspective of Positive Accounting Theory (PAT), what approach should be adopted when managers are approaching retirement?

  What is the effective rate to the nearest hundredth percent

Marit Brunsell deposited $50,000 at Bank of America at 8% interest compounded quarterly. What is the effective rate (APY) to the nearest hundredth percent?

  Is it ethical to adjust the figures to compensate for risk

Mr. Lim is on the capital budgeting committee for his company, Limahong. Is it ethical to adjust the figures to compensate for risk? Explain

  How to create a schedule of cost of goods sold

Make a schedule of cost of goods sold. Assume that the company's under-applied or over-applied overhead is closed to Cost of Goods Sold.

  How would figure out the break-even point in units

If were to assume that last year's fixed costs totaled $960,000, how would figure out the break-even point in units?How do figure out the weighted average?

  Which activity would purchase affect in cash flow statement

XYZ Pty Ltd purchased a block of land in exchange for ordinary shares. Which activity would this purchase affect in the cash flow statement?

  Compute the break even point in units

A company sells its product for $12 per unit. Variable costs per unit are $5. The company's total fixed costs are $98,000. The break even point in units is

  Explain the concept that holds that the costing method

Explain concept that holds that the costing method traditional use of a single driver is inaccurate and misleading in assignment of indirect costs to products

  How much would come from products x and y

Calculate the weighted average contribution margin.Determine the level of sales (in dollars) necessary to generate operating income of $185,000

  How determine the factory overhead rate

How do you determine the factory overhead rate? all have is factory depreciation 25888.00, indirect labor 64720.00, factory electricity 6472.00

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