User Account

All Pages

What would be the bep in units

Assignment Help Financial Accounting
Reference no: EM132848919

Question  - B&B produces and sells one single product: BT5. The production capacity of B&B is 65,000 units. Annual sales volume expected in 2021 is 50,000 units.

The following information is estimated for 2021: selling price per unit: $25, variable cost per unit: $16, and annual fixed costs: $324,000.

Required - Answer the following questions in the spaces provided:

1. What is the available production capacity?

2. What is the contribution margin per unit?

3. What is the contribution margin ratio?

4. What is the break-even-point (BEP) in units?

5. What is the BEP in sales dollars?

6. Do up a contribution margin income statement for the expected sales in 2021.

7. What would be the firm's profit if 42,000 units are sold in 2021?

8. What would be the BEP in units if selling price increases by $3 and the expected sales in 2021 is 50,000 units?

9. What would be the BEP in units if variable costs increase by $2 per unit and annual fixed costs decrease by $100,000 (assume original selling price and expected sales do not change).

10. Using the original data provided, if B&B receives an offer from BigZ Ltd, which is not a current customer of B&B, to purchase additional 12,000 units at $18 per unit, and B&B would incur additional fixed costs of $20,000 but no other fixed costs to produce the 12,000 units required,

a) What would be the incremental revenue if the offer is accepted?

b) What would be the incremental cost if the offer is accepted?

c) Would you accept the offer? Why?

d) What qualitative factor would make you to change your decision (identify only one qualitative factor)?

Reference no: EM132848919

Questions Cloud

Prepare the consolidation journal entries for financial year : On 25 June 2020, Parent Ltd declared a dividend of $40,000. Prepare the Consolidation Journal entries for the financial year ended 30 June 2020
Find data on the total dividends paid : You decide to invest in stock in a particular type of company and set the guideline that you will only buy stock in companies that are ranked
How did rhetoric of world war second bring contradiction : How did the rhetoric of World War II bring the contradiction between the principle of equal freedom and the actual status of blacks to the forefront
What is the probability that the average weight of sample : The weight of each package of a certain brand of rice is normally distributed, and the average weight and standard deviation are 5 kg and 0.15 kg respectively.
What would be the bep in units : What would be the BEP in units if variable costs increase by $2 per unit and annual fixed costs decrease by $100,000
Calculate a two-sided confidence inerval on mean roddiameter : A random sample of 15 rods is selected, and the diameter ismeasured. The resulting data (in millimeters) are as follows:
Why did the colonists make the decisions : Why did the colonists make the decisions that led to race based chattel slavery rather than adopting other forms of labor like wage based work
Which items in the company balance sheet are affected : A customer owing $2M for products it already received declares bankruptcy, Which items in the Company balance sheet are affected
Explain why united states decided to join imperialist club : Explain why United States decided to join the "Imperialist Club". Which argument was the strongest, and which argument was the weakest? Explain your position.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the approximate ytm

What is the approximate YTM? The price of a Rs. 1000 par value bond of Isha Heavy Machines Ltd. carrying a coupon rate of 7 % and maturity

  Question during 2011 becky loans her brother ken 5000 which

question during 2011 becky loans her brother ken 5000 which he intends to use to create a small business. ken has no

  What direction did cost of purchases move during period

first-out than it would have been using last-in, first-out. Assuming no beginning inventory, in what direction did the cost of purchases move during the period?

  How much interest would billy have to pay

Simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would Billy have to pay in a 30-day month?

  Manage a budget for a commercial outdoor adventure company

RTM 468 BUDGET PROJECT - B. The purpose of budget assignment is to provide each student an opportunity to understand and manage a budget

  The ending inventory with the specific identification method

Assuming that for Specific identification method (item 1d) the March 14, 2012, sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30, 2012. What is the cost of goods sold and the ending inventory w..

  The internal revenue service

Through Internet research, review the 20-Factor Test that courts and the Internal Revenue Service (IRS) use to determine whether an individual is an employee or an independent contractor. Make up a hypothetical scenario involving the question of whet..

  The accounts is zero except for cash-accounts receivable

The Marchetti Soup Company entered into the following transactions during the month of June: (a) purchased inventory on account for $165,000. Assume that the opening balances in each of the accounts is zero except for cash, accounts receivable, and a..

  Check issued to a supplier in payment of account payable

Prepare the bank reconciliation for Grace, Inc., as of January 31

  Difference in managerial accounting-financial accounting

What is the major difference between managerial accounting and financial accounting? For a company that produces desktop computers, would memory chips be considered a direct or indirect materials cost of each computer produced? How is product cost in..

  How would reconcile projects that can produce good result

How would you reconcile projects that can produce good results in the short term versus projects that can produce excellent results in the long term?

  Prepare eliminating entry by Bodner Inc after acquisition

The book value of the net assets amounted to $25 million, On February 1, 2X09, prepare the eliminating entry by Bodner, Inc. after the acquisition

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