Purchase Solution

Units to break even, CVP assumptions, units for profit of $1

Not what you're looking for?

Ask Custom Question

Part 10: Electra Corporation

Electra Corporation manufactures and sells two products: A and B. The operating results of the company are as follows:

Product A Product B
Sales in units 2,000 3,000
Sales price per unit $10 $5
Variable costs per unit 7 3

In addition, the company incurred total fixed costs in the amount of $9,000.

a. How many total units would the company have needed to sell to break even?

b. If the company would have sold a total of 6,000 units, consistent with CVP assumptions how many of those units would you expect to be Product B?

c. How many units would the company have needed to sell to produce a profit of $12,000?

Attachments
Purchase this Solution
Solution Summary

Response provide help regarding calculating the units to break even, CVP assumptions, units for profit of $12000

Solution Preview

See attached Excel file.

Part 10: Electra Corporation

Electra Corporation manufactures and sells two products: A and B. The operating results of the company are as follows:

Product A Product B
Sales in units 2,000 3,000
Sales price per unit $10 $5
Variable costs per unit 7 3

In addition, the company incurred total fixed costs in the amount of $9,000.

a. How ...

Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

View More Free Quizzes
Related BrainMass Solutions

  • Break-Even and Budgeting

    518925 Break-Even and Budgeting 1. The break even or cost volume profit (CVP) model is based on a number of assumptions. Discuss these assumptions and whether or not they are correct in the real world.

  • Managerial Accounting Practices: Example Problems

    Above the break-even point, what does every dollar of contribution margin go toward? Include at least 1 page of calculations for the following scenario analyses: What is the break-even point, in units and dollars, for the basic data?

  • Capital Budgeting Example Problem

    Above the break-even point, what does every dollar of contribution margin go toward? Include at least 1 page of calculations for the following scenario analyses: What is the break-even point, in units and dollars, for the basic data?

  • What are the components of cost-volume-profit (CVP) ...

    The break-even point can be determined based on the CVP, and units of activity can also be measured. This gives valuable insight into which product lines are under producing.

  • Break even point, CVP analysis

    214114 Cost volume Profit analysis, Break even point Cost, Volume, and Profit Questions 1. How should mixed costs be classified in CVP analysis? What approach is used to effect the appropriate classification? 2.

  • CVP Analysis-Break even sales

    212486 CVP Analysis Each problem is unrelated to the others. 1. Given: Selling price per unit, $20; total fixed expenses, $5,000; variable expenses per unit, $15. Find break-even sales in units. 2.

  • CVP Analysis - Graph and Mixed Costs

    208622 Cost, Volume, and Profit (CVP): mixed costs, unit costs, CVP graph, plot break even 1. How should mixed costs be classified in CVP analysis? What approach is used to effect the appropriate classification? 2.

  • CVP Analysis Model

    464496 CVP Analysis Model I need to construct a CVP analysis model and include break-even point in sales and units for TJ Maxx (tjx). I don't understand how to use the given financial information to create a CVP analysis.

  • Calculating CM, break even sales and operating profits

    336654 CVP Analysis Howard Beal co. manufactures molds for casting aluminum alloy test samples. Fixed costs amount to $20,000 per year. Variable costs for each unit manufactured are $16. Sales price per unit is $28. a.

View More Related Solutions