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    Break-even sales

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    ________________________________________

    Kray Inc., which produces a single product, has provided the following data for its most recent month of operations:
    Number of units produced 2,700
    Variable costs per unit:
    Direct materials $84
    Direct labor $10
    Variable manufacturing overhead $7
    Variable selling and administrative expense $5
    Fixed costs:
    Fixed manufacturing overhead $225,000
    Fixed selling and administrative expense $156,000

    There were no beginning or ending inventories. The unit product cost under variable costing was:

    (a) $94
    (b) $114
    (c) $101
    (d) $119

    ________________________________________

    Blake Corporation, which produces a single product, has provided the following absorption costing income statement for the month of June:

    Blake Corporation
    Income Statement
    For the month ended June 30

    Sales (9,700 units) $349,200
    Cost of goods sold:
    Beginning inventory $ 8,500
    Add cost of goods manufactured 101,700
    Goods available for sale 110,200
    Less ending Inventory 20,100
    Cost of goods sold 90,100
    Gross margin 259,100
    Selling and administrative expenses:
    Fixed $ 80,000
    Variable 19,400 99,400
    Net operating income $ 159,700

    During June, the company's variable production costs were $10 per unit and its fixed manufacturing overhead totaled $70,000. A total of 8,000 units were produced during June and the company had 850 units in the beginning inventory. The company uses the LIFO method to value inventories.

    The break-even point in units for the month under variable costing would be (rounded):

    (a) 6,250 units
    (b) 6,402 units
    (c) 6,100 units
    (d) 7,255 units

    ________________________________________

    During its first year of operations, Carlos Manufacturing Company incurred the following costs to produce 9,400 units of its product:

    Direct materials $6 per unit
    Direct labor $3 per unit
    Variable manufacturing overhead $12 per unit
    Fixed manufacturing overhead $483,630 in total

    The company also incurred the following costs in the sale of 6,900 units of product during its first year:

    Variable selling and administrative $3 per unit
    Fixed selling and administrative $59,000 in total

    Assume that direct labor is a variable cost.

    If Carlos' absorption costing net operating income for this first year is $117,425, what would its variable costing net operating income be for this first year?

    (a) $86,000
    (b) $-11,200
    (c) $146,250
    (d) $104,125

    Dearne Company, which has only one product, has provided the following data concerning its most recent month of operations:
    Selling price $60

    Units in beginning inventory 0
    Units produced 6,000
    Units sold 4,600
    Units in ending inventory 1,400

    Variable costs per unit:
    Direct materials $21
    Direct labor $14
    Variable manufacturing overhead $3
    Variable selling and administrative $6

    Fixed costs:
    Fixed manufacturing overhead $41,000
    Fixed selling and administrative $74,200

    What is the total period cost for the month under the absorption costing approach?

    (a) $101,800
    (b) $114,300
    (c) $100,300
    (d) $110,000

    ________________________________________

    Decaprio Inc. produces and sells a single product. The company has provided its contribution format income statement for June.

    If the company sells 9,200 units, its net operating income should be closest to:

    (a) $25,900
    (b) $36,700
    (c) $27,077
    (d) $49,900

    ________________________________________

    The margin of safety in the Flaherty Company is $24,000. If the company's sales are $120,000 and its variable expenses are $80,000, its fixed expenses must be:

    (a) $8,000
    (b) $32,000
    (c) $24,000
    (d) $16,000

    The following data are available for the Phelps Company for a recent month:

    The break-even sales for the month for the company are:

    (a) $203,000
    (b) $137,500
    (c) $148,000
    (d) $91,667

    ________________________________________

    Newham Corporation produces and sells two products. In the most recent month, Product R10L had sales of $28,000 and variable expenses of $6,440. Product X96N had sales of $22,000 and variable expenses of $7,560. And the fixed expenses of the entire company were $32,710. The break-even point for the entire company is closest to:

    (a) $32,710
    (b) $46,710
    (c) $17,290
    (d) $45,431

    ________________________________________

    Taylor, Inc. produces only two products, Acdom and Belnom. These account for 60% and 40% of the total sales dollars of Taylor, respectively. The unit variable expense as a percentage of the selling price is 60% for Acdom and 85% for Belnom. Total fixed expenses are $150,000. There are no other costs.

    Assuming that the total fixed expenses of Taylor increase by 30% and the sales mix remains constant, what amount of sales dollars would be necessary to generate a net operating income of $9,000?

    (a) $204,000
    (b) $464,000
    (c) $659,000
    (d) $680,000

    ________________________________________

    Taylor, Inc. produces only two products, Acdom and Belnom. These account for 60% and 40% of the total sales dollars of Taylor, respectively. The unit variable expense as a percentage of the selling price is 60% for Acdom and 85% for Belnom. Total fixed expenses are $150,000. There are no other costs.

    What is Taylor's break-even point in sales dollars?

    (a) $214,286
    (b) $300,000
    (c) $150,000
    (d) $500,000

    ________________________________________

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    https://brainmass.com/business/sales-revenue/break-even-sales-214244

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    ________________________________________

    Kray Inc., which produces a single product, has provided the following data for its most recent month of operations:
    Number of units produced 2,700
    Variable costs per unit:
    Direct materials $84
    Direct labor $10
    Variable manufacturing overhead $7
    Variable selling and administrative expense $5
    Fixed costs:
    Fixed manufacturing overhead $225,000
    Fixed selling and administrative expense $156,000

    There were no beginning or ending inventories. The unit product cost under variable costing was:

    (a) $94
    (b) $114
    (c) $101
    (d) $119

    ________________________________________

    Blake Corporation, which produces a single product, has provided the following absorption costing income statement for the month of June:

    Blake Corporation
    Income Statement
    For the month ended June 30

    Sales (9,700 units) $349,200
    Cost of goods sold:
    Beginning inventory $ 8,500
    Add cost of goods manufactured 101,700
    Goods available for sale 110,200
    Less ending Inventory 20,100
    Cost of goods sold 90,100
    Gross margin 259,100
    Selling and administrative expenses:
    Fixed $ 80,000
    Variable 19,400 99,400
    Net operating income $ 159,700

    During June, the company's variable production costs were $10 per unit and its fixed manufacturing overhead totaled $70,000. A total of 8,000 units were produced during June and the company had 850 ...

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    This provides the steps to calculate the break-even sales

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