Question 19.3: Nicolas Enterprises sells a product for $60 per unit. The va...

Financial and Managerial Accounting

Nicolas Enterprises sells a product for $60 per unit. The variable cost is $35 per unit, while fixed costs are $80,000. Determine the (a) break-even point in sales units and (b) break-even point in sales units if the selling price were increased to $67 per unit.

The blue check mark means that this solution has been answered and checked by an expert. This guarantees that the final answer is accurate.
Learn more on how we answer questions.

Related Answered Questions

Question: 19.IP.1

Wyatt Inc. expects to maintain the same inventories at the end of the year as at the beginning of the year. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. It is expected that 60,000 units will be sold at a price of $20 per unit. Maximum sales ...

Verified Answer:

1. a. Contribution Margin Ratio =

\frac...

Question: 19.6

Tucker Company reports the following data: Sales $750,000 Variable costs 500,000 Contribution margin $250,000 Fixed costs 187,500 Income from operations $ 62,500 Determine Tucker Company’s operating leverage. ...

Verified Answer:

Operating Leverage =

\frac{Contribution Ma...

Question: 19.7

Rachel Company has sales of $400,000, and the break-even point in sales dollars is $300,000. Determine the company’s margin of safety as a percent of current sales. ...

Verified Answer:

Margin of Safety =

\frac{Sales - Sales a...

Question: 19.5

Megan Company has fixed costs of $180,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products are provided below. ...

Verified Answer:

Unit selling price of E: [($160 × 0.75) + (...

Question: 19.4

Forest Company sells a product for $140 per unit. The variable cost is $60 per unit, and fixed costs are $240,000. Determine the (a) break-even point in sales units and (b) the sales units required to achieve a target profit of $50,000. ...

Verified Answer:

a. 3,000 units = $240,000/($140 – $60) b. 3,625 un...

Question: 19.2

Molly Company sells 20,000 units at $12 per unit. Variable costs are $9 per unit, and fixed costs are $25,000. Determine the (a) contribution margin ratio, (b) unit contribution margin, and (c) income from operations. ...

Verified Answer:

a. 25% = ($12 – $9)/$12, or ($240,000 – $180,0...

Question: 19.1

The manufacturing costs of Alex Industries for the first three months of the year are provided below. ...

Verified Answer:

a. $30 per unit = ($125,000 – $80,000)/(2,500 – 1,...