What is the present breakeven point in? revenues

Assignment Help Financial Accounting
Reference no: EM131264845

The McKnight Company manufactures and sells pens.? Currently, 5,000,000 units are sold per year at $0.50 per unit. Fixed costs are $1,140,000 per year. Variable costs are $0.20 per unit. Consider each case? separately: 1. a. What is the current annual operating? income? b. What is the present breakeven point in? revenues? Compute the new operating income or loss for each of the following? changes: 2. A $0.08 per unit increase in variable costs 3.A 20?% increase in fixed costs and a 20?% increase in units sold 4.A 40?% decrease in fixed? costs, a 40?% decrease in selling? price, a 10% decrease in variable cost per? unit, and a 35?% increase in units sold Compute the new breakeven point in units for each of the following? changes: 5. A 20?% increase in fixed costs 6. A 20?% increase in selling price and a $10,000 increase in fixed costs

Reference no: EM131264845

Questions Cloud

Use high-low costing method-what is variable cost per hour : Miller Landscaping is attempting to estimate costs for future projects. Miller has compiled data and decided to use the high-low costing method. The low value is $286,720 for 4,096 hours and the high value is $494,900 for 7,070 hours. What is the var..
What is the value for the fixed quantity : Williams Inc. produces fluorescent lightbulbs for commercial use. The accounting manager is attempting to estimate the total cost for the next quarter using the high-low method. He has compiled data and found the high and low costs are $65,000 and $3..
What are the journal entries to record the sales : Carolina Furniture World is required by law to collect and remit sales taxes to the state. If Furniture World has $78,000 of cash sales that are subject to a 6% sales tax and a gross margin percentage of 40%, what are the journal entries to record th..
Determine the tax consequences to vic : Vic, who was experiencing financial difficulties, was able to adjust his debts as follows: Vic is an attorney. Vic owed his uncle $25,000. The uncle told Vic that if he serves as the executor of the uncle’s estate, Vic’s debt will be canceled in the ..
What is the present breakeven point in? revenues : The McKnight Company manufactures and sells pens.? Currently, 5,000,000 units are sold per year at $0.50 per unit. Fixed costs are $1,140,000 per year. Variable costs are $0.20 per unit. Consider each case? separately: What is the current annual oper..
Calculate the relative value units procedure : JOB Order Costing and Relative Value Units U2 Reference Lab must calculate the relative value and cost per procedure given that the total lab expense is $943,241: Calculate the Relative Value Units Procedure A B C D E F G. Calculate total Relative Va..
Raised the average fuel efficiency standard : The National Highway Traffic Safety Administration raised the average fuel efficiency standard to 35.5 miles per gallon (mpg) for cars and It trucks by the year 2016. The rules will cost consumers an average of $926 extra per vehicle in the 2016 mode..
The minimum sales volume per month to earn a profit : A manufacturing company is negotiating a sales contract. the fixed cost to produce the product is $90,000 per month. The variable cost is $130.00 per piece. The product will sell for $160.00 each under this contract. Determine the minimum sales volum..
Inconsistent with the current definition of liabilities : The FASB decided in SFAS No.150 that mandatorily redeemable preferred stock should be, in general, classified as debt, even if the firm will issue its own equity shares in settlement. How is this inconsistent with the current definition of liabilitie..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Cost leadership strategy-quick-response strategy

Of the potential strategies available to Regal Marine, have they chosen differentiation, cost leadership, or quick response? Do you think that is a good choice for a boat manufacturer? Why or why not?

  Determine the company''s return on investment

Determine the company's return on investment (ROI) and residual income (RI).

  Manufacturing overhead budget

The manufacturing overhead budget at Cutchin Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,900 direct labor-hours will be required in September. The variable overhead rate is $5.60 per direct labor-hour..

  What amount of child tax credit may they claim

Rhianna and Jay are married filing jointly in 2011. They have six children for whom they may claim the child tax credit. Their AGI was $123,440. What amount of child tax credit may they claim on their 2011 tax return?

  What is our journal entryies

So assume we own 10% of another company. That company has net income of 80,000 ans makes dividend distributions of 50,000. What is our journal entry(ies)?

  Shareholders have decision-making power in a corporation

Currently directors, not shareholders, have the right to manage corporate business. What might happen if shareholders won part of that role? What are your thoughts on the wisdom of letting shareholders have decision-making power in a corporation?

  What is the due date for the notice of objection

In the Income Tax Regulations, where would you find all the CCA classes and their rates? In what class would you find small tools and utensils (

  Evaluate the arguments for and against regulation

Discuss the above quotation. Explain and evaluate the arguments for and against regulation. What is your opinion of the current level of accounting regulation?

  What is the amount of the annual deposit

You want to have $75,000 in your savings account 12 years form now, and you've prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.8 percent interest, what amount must you deposit each year? What is ..

  Absorption coating and variable costing income statements

Rey Company's single product sells at a price of $216 per unit. Data for its single product for its first year of operations follow. Prepare an income statement for the year assuming (a) absorption costing and (variable costing)

  What does the report indicate about the production manager

Prepare a performance report for Tang Company for the year.  What does the report indicate about the production manager’s control of costs?

  Which are used in the assembly of one of its products

Green Company produces 1,000 parts per year, which are used in the assembly of one of its products. The annual impact on the company's net operating income as a result of buying the part from the outside supplier would be:

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