Breakeven Analysis

Published on December 2017 | Categories: Business/Law | Downloads: 85 | Comments: 0 | Views: 481
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Breakeven Analysis Click Link Below To Buy: https://hwaid.com/shop/breakeven-analysis/ Contact Us: [email protected] Breakeven Analysis Breakeven Analysis (110 points) Prepare breakeven analysis and a C-V-P analysis planning future sales using the information below. Breakeven Analysis and Planning Future Sales Write Company has a maximum capacity of 200,000 units per year. Variable manufacturing costs are $12 per unit. Fixed overhead is $600,000 per year. Variable selling and administrative costs are $5 per unit, and fixed selling and administrative costs are $300,000 per year. The current sales price is $23 per unit. Required What is the breakeven point in (a) sales units and (b) sales dollars? How many units must Write Company sell to earn a profit of $240,000 per year? A strike at one of the company’s major suppliers has caused a shortage of materials, so the current year’s production and sales are limited to 160,000 units. To partially offset the effect of the reduced sales on profit, management is planning to reduce fixed costs to $841,000. Variable cost per unit is the same as last year. The company has already sold 30,000 units at the regular selling price of $23 per unit. a. What amount of fixed costs was covered by the total contribution margin of the first 30,000 units sold? b. What contribution margin per unit will be needed on the remaining 130,000 units to cover the remaining fixed costs and to earn a profit of $210,000 this year? It is strongly encouraged that you submit all assignments to the Turnitin Originality Check prior to submitting it to your instructor for grading. If you are unsure how to submit an assignment to the Originality Check tool, please review the TurnItIn Originality Check – Student Guide for step-by-step instructions.

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Breakeven Analysis Click Link Below To Buy: https://hwaid.com/shop/breakeven-analysis/ Contact Us: [email protected] Breakeven Analysis Breakeven Analysis (110 points) Prepare breakeven analysis and a C-V-P analysis planning future sales using the information below. Breakeven Analysis and Planning Future Sales Write Company has a maximum capacity of 200,000 units per year. Variable manufacturing costs are $12 per unit. Fixed overhead is $600,000 per year. Variable selling and administrative costs are $5 per unit, and fixed selling and administrative costs are $300,000 per year. The current sales price is $23 per unit. Required What is the breakeven point in (a) sales units and (b) sales dollars? How many units must Write Company sell to earn a profit of $240,000 per year? A strike at one of the company’s major suppliers has caused a shortage of materials, so the current year’s production and sales are limited to 160,000 units. To partially offset the effect of the reduced sales on profit, management is planning to reduce fixed costs to $841,000. Variable cost per unit is the same as last year. The company has already sold 30,000 units at the regular selling price of $23 per unit. a. What amount of fixed costs was covered by the total contribution margin of the first 30,000 units sold? b. What contribution margin per unit will be needed on the remaining 130,000 units to cover the remaining fixed costs and to earn a profit of $210,000 this year? It is strongly encouraged that you submit all assignments to the Turnitin Originality Check prior to submitting it to your instructor for grading. If you are unsure how to submit an assignment to the Originality Check tool, please review the TurnItIn Originality Check – Student Guide for step-by-step instructions.

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