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Breakeven point
Decrease
Since (BEV) = Total Fixed Cost / (Selling Price per unit - Variable Costs per unit)
And (Selling Price per unit - Variable Costs per unit) is increasing as Selling Price per unit increases while Variable Costs per unit remain the same and we
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Pricing Calculations for Optimal Prices
+$10.00=$12.00
Target-Return Price Target Return Price = Unit price + Target ROI*Investment / Unit Sales
= $12.00+20%*20,000/5,000
=$12.00+$0.80 = $12.80
3.
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Calculating Break Even Point
When Unit Price is $39
Fixed costs= $73,000.00
The contribution margin is computed as follows:
SELLING PRICE - VARIABLE EXPENSES PER UNIT 12
Cash Break even point= 6,083 units
C.
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CVP Analysis-Break even sales
Assume no change in selling price; find net income if activity volume increases 10%.
5. Given: Selling price per unit, $40; total fixed expenses, $80,000; variable expenses per unit, $30.
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Calculating Units Necessary for a Certain Net Operating Income
Total Variable Cost= $22.00 per unit
Contribution per unit = Selling price per unit - Variable Cost per unit= $18.00 =$40. - $22.
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AJ Company
Contribution margin per unit = Sales price per unit - variable costs per unit
= $20 - $12 = $8 per unit
Therefore, 6,875 x $8 = $55,000
Contribution margin ratio = (Sales price per unit - variable costs per unit)/sales price per unit
= (20 -
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What is the target price per unit?
What is the target price per unit? The target price per unit is the reduction in price - the target price per unit would remain $87.
The correct answer is $87, it wouldn't change.
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Calculating manufacturing cost per unit, contribution per unit, which costs are relevant for making the decision, and minimum acceptable price of the special order (Truck Parts Manufacturer)
, 145, or 255
contribution per unit = unit price - variable cost per unit
= unit price - (Direct materials + Direct labor + Variable manufacturing support)
= 255 - (40 + 20 + 50) = 255 - 110= $145
3) Which costs are relevant for making the
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Selling price per unit
20% = $7
Selling price = 35+7 = $42 The solution explains how to calculate the selling price per unit.
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Transfer prices and divisional profits
If the transfer price is $150, then
Selling price of framing division=Transfer price=$150 per unit
Cost of framing division=$100 per unit
Volume=5000 chairs
Profit of Framing division=(Selling Price-Cost)*Volume=(150-100)*5000 =$250,000
Selling