Delong Inc,: What unit sales volume would income equal costs?

DeLong Inc. has fixed operating costs of $470,000, variable costs of $2.80 per unit produced, and its products sell for $4.00 per unit. What is the company's breakeven point, i.e., at what unit sales volume would income equal costs?

Solution Summary

The solution examines unit sales volume for income equal costs for Delong Inc.

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit. Variable costs are $8 per unit, and fixed costs total $180,000 per year.
Required:
Answer the following independent questions:
1. What is the product's CM ratio?
2. Use the CM ratio to determine the break-even point in

Please answer part one and explain in detail for part two.
1. A cost that changes in proportion to changes in volume of activity is a(n):
A. Differential cost.
B. Fixed cost.
C. Incremental cost.
D. Variable cost.
E. Product cost.
2. A target income refers to:
A. Income at the break-even point.
B. Incom

4. The contribution margin ratio is _________.
the same as the variable cost ratio
the same as profit
the portion of equity contributed by the stockholders
the same as the profit-volume ratio
5. Halter Inc.'s unit selling price is $70, the unit variable costs are $45, fixed costs are $

Show your work
4. L.F Company manufactures and sells a single product that sells for $480 per unit; variable costs are $300. Annual fixed costs are $990,000. Current salesvolume is $4,200,000. Compute the break-even point in dollars.
5. L.F Company manufactures and sells a single product that sells for $480 per unit; varia

Explain and write out your calculations for each firm.
Firm A:
Units Sold = 5,600 Revenue = $12.00
Variable Costs per Unit (VC) = ?
Contribution Margin Total = $25,200
Fixed Costs (FC) = $20,300
Operating Income (OI)=$ ? CM unit= ?
CM unit%= ? VC unit %= ?
Firm B:
Units Sold = 16,800 Revenue = $?
Variable Cost

16. Item A sells for $5. Fixed costs per unit are $1, and variable costs per unit are $3. The contribution margin ratio for item A is 20%.
a. True
b. False
17. Which of the following average costs per unit may be expected to decrease by the greatest percentage with an increase in the volume of units produced?
a. Average fi

A company sells a single product for $20 per unit. If variable expenses are 60% of sales and fixed expenses total $9,600, whatwould total salesvolume have to be in order to achieve net income of $10,000...choices are?
a. $33,500
b. $57,000
c. $46,000
d. $49,000

1. Cost-volume-profit analysis assumes all of the following EXCEPT:
a. total variable costs remain the same over the relevant range
b. units manufactured equalunits sold
c. all costs are variable or fixed
d. total fixed costs remain the same over the relevant range
2. Kaiser's Kraft Korner sells a sing

1.Explain the components of cost-volume-profit analysis.
2.What does each of the components mean?
3.What happens to contribution margin per unit when unit selling prices increase? Illustrate your explanation with an example from a fictitious company of how an increase in unit selling prices might affect contribution margin.
4