1. Jet Company\'s break-even point is 6,000 units. The company\'s fixed costs ar
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Question
1. Jet Company's break-even point is 6,000 units. The company's fixed costs are $230,000, and its total variable costs are $64,000. The unit sales price is:
2. The Haskins Company manufactures and sells radios. Each radio sells for $54.00 and the variable cost per unit is $30.00. Haskin's total fixed costs are $54,000.00, and budgeted sales are 30,000.00 units. What is the contribution margin per unit?
3. Assume Moe's Southwest Grill has a break-even point of 25,200 units. At this point, total sales are $2,400,000 and total variable costs are $1,680,000. Compute total fixed costs at the break-even point.
Explanation / Answer
Ans 1 per unit cost No.of Units at breakeven 6000 Sales 49 Variable Cost 64000 10.67 Contribution 38.33 Fixed Cost 230000 Break even=Fixed cost/Contribution margin per unit Contribution per unit 230000/6000 38.33 Sales price per unit=10.67+38.33 49.00 Ans 2 Contribution margin per unit= Selling Price per unit-Variable cost per unit $54-$30 $24 Ans Ans 3 At breakeven Total contribution=Fixed Cost No. of units at breakeven 25200 per unit Sales 2400000 95.24 Variable Cost 1680000 66.67 Contribution 720000 28.57 Fixed Cost 720000 Net Income 0 Break even=Fixed cost/Contribution margin per unit 25200*28.57 720000 Fixed cost
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