Looking for someone to check my work. Prepare breakeven analysis and a C-V-P ana

Question

Looking for someone to check my work.

Prepare breakeven analysis and a C-V-P anal anning future sales using the information below A. 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 S5 per unit, and fixed selling and administrative costs are S300,000 per year. The current sales price is $23 per unit. 1. What is the breakeven point in (a)sales units and (b)sales dollars? 2. How man y units must Write Company sell to earn a profit of $240,000 per year? B. Astrike atone 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. 3. What amount offixed costs was covered by the total contribution margin of the first 30,000 units sold? 4. 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? 1 a. Compute breakeven in sales units. BE in Units- Fixed Costs/CM per Unit Fixed Costs Manufacturing Costs Fixed S&A;: Total Fixed Costs: $ 600,000.00 $ 300,000.00 $ 900,000.00 Revenue per Unit: Variable Manufacturing Costs: Variable S&A; Costs Contribution Margin: 23.00 12.00 5.00 6.00 BE in Units 150,000.00 Units

Explanation / Answer

Dear Student, I have checked your work and have found that it is absolutely correct. I have got the same answers for all questions as calculated by you.

A)

1a) 150000 units

1b) $3450000

2) 190000 units

B)

3) $180000 units

4) $6.7

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