What is the overall sales revenue of Standlar at break-even point?
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- Rachmin Inc. manufactures several models of computer monitors. The basic model sells for $330 and has variable costs of $285 per unit. The deluxe model sells for $510 and has variable costs of $375 per unit. The professional model sells for $1,800 and has variable costs of $1,200 per unit. Total fixed expense is $433,500 per year. In general, the company sells six basic models and three deluxe models for every professional model sold. Required (A) Compute the number of basic models, deluxe models, and professional models that are sold at the breakeven point. (B) Check you answer to (A) by preparing a contribution margin income statement for Rachmin Inc. for the year. (C) According to the authors of the textbook, how do risk and uncertainty relate to Cost-Volume Profit (CVP) analysis?Toasty Treats Company makes high end toaster ovens. The standard model price is $360 and variable expenses are $210. The deluxe model price is $500 and variable expenses are $300. The superior model price is $1,600 and variable expense per unit is $600. Total fixed expenses are $300,000. Generally, Toasty Treats sells 8 standard models and 4 deluxe models for every superior model sold. What is the number of deluxe models sold at break- even? 500 100 250 400 1,000Friar Corp. sells two products. Product A sells for $112 per unit, and has unit variable costs of $65. Product B sells for $102 per unit, and has unit variable costs of $59. Currently, Friar sells three units of Product B for every one unit of Product A sold. Friar has fixed costs of $752,400. How many units would Friar have to sell to earn a profit of $250,800?
- Burnem Inc. manufactures thumb drives and sells them to a distributor. Burnem's total cost and total revenue (in dollars) for x thumb drives are given by the following equations. Total cost = 6(x + 4716) and Total revenue = 15x (a) How many thumb drives must Burnem sell to break even? X = thumb drives (b) What is the selling price of each item? $ (c) What are the fixed costs? $ (d) What is the marginal profit per item? $Head Pops Inc. manufactures two models of solar-powered, noise-canceling headphones: Sun Sound and Ear Bling models. The company is operating at less than full capacity. Market research indicates that 26,800 additional Sun Sound and 29,700 additional Ear Bling headphones could be sold. The operating income by unit of product is as follows: Sun SoundHeadphones Ear BlingHeadphones Sales price $35.60 $55.50 Variable cost of goods sold (19.90) (31.10) Manufacturing margin $15.70 $24.40 Variable selling and administrative expenses (7.10) (11.10) Contribution margin $8.60 $13.30 Fixed manufacturing costs (3.20) (5.00) Operating income $5.40 $8.30 Prepare an analysis indicating the increase or decrease in total profitability if 26,800 additional Sun Sound and 29,700 additional Ear Bling headphones are produced and sold, assuming that there is sufficient capacity for the additional production. Round your per unit answers to two decimal place.…SEved Spring Corp. has two divisions, Daffodil and Tulip. Daffodil produces a gadget that Tulip could use in its production. Tulip currently purchases 170,000 gadgets for $13.90 on the open market. Daffodil's variable costs are $7 per widget while the full cost is $11.45. Daffodil sells gadgets for $14.40 each. If Daffodil is operating at capacity, what would be the minimum transfer price Daffodil would accept for an internal transfer? Multinic Choice $7.40 $1.45 $13.90 $14.40
- Head Pops Inc. manufactures two models of solar-powered, noise-canceling headphones: Sun Sound and Ear Bling models. The company is operating at less than full capacity. Market research indicates that 28,700 additional Sun Sound and 31,600 additional Ear Bling headphones could be sold. The operating income by unit of product is as follows: Sun SoundHeadphones Ear BlingHeadphones Sales price $37.50 $58.50 Variable cost of goods sold (21.00) (32.80) Manufacturing margin $16.50 $25.70 Variable selling and administrative expenses (7.50) (11.70) Contribution margin $9.00 $14.00 Fixed manufacturing costs (3.40) (5.30) Operating income $5.60 $8.70 Prepare an analysis indicating the increase or decrease in total profitability if 28,700 additional Sun Sound and 31,600 additional Ear Bling headphones are produced and sold, assuming that there is sufficient capacity for the additional production. Round your per unit answers to two…Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $114 and of each door is $264. The variable cost of a window is $69.50 and of a door is $182.00. Fixed costs are $416,000. (Enter your "per unit" values in two decimal places.)Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.
- Pimpton Plows sells its product for $50. Its variable cost per unit is $19.00. Fixed costs total $434,000.How many units does the company need to sell to breakeven?What are the total sales in dollars at the breakeven point?How many units does the company need to sell to earn a profit of $155,000?McDonald Inc. sells two products: a regular and a deluxe version. The owner, lain, would like to better understand the impact of the sales mix on the company's sales. The following information is available: Sales price per unit Variable cost per unit Regular $45 $27 Deluxe $80 $32 The company has total fixed costs of $540,000 for the year and they sell 3 Regular products for every 2 Deluxe products. lain would like to know, given the sales mix, how many units of each product the company must sell per year to break even. The company must sell www units of the Regular product. Enter the number of units given the current sales mix. units of the Deluxe product. The company must sell Enter the number of units given the current sales mix.Perry, Inc. manufactures metal stampings for automobiles: stick shifts and trim kits. Fixed costs are $146,000. Each stick shift sells for $10 and has variable costs of $8; each trim kit sells for $9 and has variable costs of $5. What are the contribution margins per unit and contribution ratios for door handles and trim kits? If Perry sells 30,000 stick shifts and 45,000 trim kits, what is operating income? How many stick shifts and trim kits must be sold for Perry to break even?