Purchase Solution

Break-even analysis: The following data pertain to last month's operations...

Not what you're looking for?

Ask Custom Question

The following data pertain to last month's operations:

Selling price $30 per unit
Variable production cost $15 per unit
Fixed production cost $80,000
Variable selling & admin. expense $3 per unit
Fixed selling & admin. expenses $40,000

The break-even point in dollars is:
A) $300,000. C) $200,000.
B) $240,000. D) $160,000.

Purchase this Solution
Solution Summary

This solution assists in a break-even analysis.

Solution Preview

First of all we need to determine the total fixed costs and total variable cost per unit:
Total fixed costs= Fixed Production Cost + Fixed Selling & Admin. Expenses
= 80,000 +40,000
...

Solution provided by:
Umut Oltulu, MBA
Education
  • BSc, Dokuz Eylul University
  • MBA, Texas A&M University-Kingsville
Recent Feedback
  • "Thanks"
  • "Thanks"
  • "This is a great help...Thank you"
  • "Thanks for the advice!"
  • "Oh my gosh u are awesome... A++"
Purchase this Solution
Free BrainMass Quizzes
Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

View More Free Quizzes
Related BrainMass Solutions

  • Materials price variance

    data pertain to a recent month's operations: Actual material purchased 5,100 liters Actual cost of material purchased $100,725 Actual material used in production 4,700 liters Actual output 2,040 units of product G13 a.)

  • Mateiral Price and Material Quantity Variance

    4.5 pounds Standard price of the material $ 13.90 per pound The following data pertain to a recent month's operations: Actual material purchased 2,000 pounds Actual cost of material purchased $26,200

  • Absorption costing

    The following data pertain to one month's operations of Whitney, Inc.: Units in beginning inventory -0- Units produced 9,000 Units sold 8,000 Variable costs per unit: Manufacturing $10 Selling and administrative 6 Fixed costs

  • CVP and Break Even Analysis

    If the company president's goal is to increase this month's profits by 50% over last month's, what is the maximum amount that can be spent on advertising that doubles sales volume? b.

  • Practice exam questions, managerial accounting

    The following data pertain to the company's operations over the last two years: Variable costing net operating income, last year $91,400 Variable costing net operating income, this year $111,500 Increase in inventory, last year 1,700

  • Managerial Accounting Problems Computed

    If this change is made, what will be the new break-even point in dollar sales and in unit sales? 5. Refer to the original data.

  • Budgets to Isaac Company

    The following forecasted sales pertain to Isaac Company: Month Sales September $180,000 October 200,000 November 160,000 December 140,000 Collection pattern: 55 percent in month of sale 45 percent in month following sale Accounts Receivable

  • Variable expense/Break-Even/Net Income

    133319 Variable Expense/Break-Even/Net Income The following data pertain to Epsom Corporation's operations: Sales 12,000 units Selling price $25 per unit Contribution Margin Ratio 40% Margin of Safety percentage 30%

  • Standard Cost and Variances of Material

    The following materials standards have been established for a particular product: Standard quantity per unit of output 0.2 grams Standard price $18.90 per gram The following data pertain to operations concerning the product for the last month

View More Related Solutions