171. The manufacturing cost of Mocha Industries for three months of the year are provided below:
a. $24.80 per unit = ($100,300 - $63,100) / (2,600 - 1,100)
b. $35,820 = $100,300 - ($24.80 ´ 2,600)
172. The manufacturing cost of Carrie Industries for the first three months of the year are provided below:
a. $28 per unit = ($115,500 - $81,900) / (3,100 - 1,900)
b. $28,700 = $115,500 - ($28 ´ 3,100)
173. Carmelita Company sells 40,000 units at $18 per unit. Variable costs are $10 per unit, and fixed costs are $62,000. Determine the (a) unit contribution margin, (b) contribution margin ratio, and (c) income from operations.
a. $8 per unit = $18 - $10
b. $8 / $18 = 44.44%
c.
174. Penny Company sells 25,000 units at $59 per unit. Variable costs are $29 per unit, and fixed costs are $800,000. Determine the (a) unit contribution margin (b) contribution margin ratio, and (c) income from operations.
a. $30 per unit = $59 - $29
b. $30 /$59 = 50.8%
c.
175. Gladstorm Enterprises sells a product for $60 per unit. The variable cost is $20 per unit, while fixed costs are $85,000. Determine the (a) break-even point in sales units, and (b) break-even point if the selling price increased to $75 per unit.
a. SP $60 - VC $20 = CM $40
$85,000 / $40 = 2,125 units
b. SP $75 - VC $20 = CM $55
$85,000 / $55 = 1,546 units
176. Mia Enterprises sells a product for $90 per unit. The variable cost is $40 per unit, while fixed costs are $75,000. Determine the (a) break-even point in sales units, and (b) break-even point if the selling price increased to $100 per unit.
a. SP $90 - VC $40 = CM $50 per unit
$75,000 / $50 = 1,500 units
b. SP $100 - VC $40 = CM $60 per unit
$75,000 / $60 = 1,250 units
177. The Atlantic Company sells a product for $150 per unit. The variable cost is $60 per unit, and fixed costs are $270,000. Determine the (a) break-even point in sales units, and (b) break-even points in sales units if the company desires a target profit of $36,000.
a. 3,000 units = $270,000 / ($150 - $60)
b. 3,400 units = ($270,000 + $36,000) / ($150 - $60)
178. The Waterfall Company sells a product for $150 per unit. The variable cost is $80 per unit, and fixed costs are $270,000. Determine the (a) break-even point in sales units, and (b) break-even points in sales units if the company desires a target profit of $36,000.
a. SP $150 - VC $80 = CM $70
$270,000 / $70 = 3,858 units
b. ($270,000 + $36,000) / $70 = 4,372 units
179. Bobby Company has fixed costs of $160,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products are provided below.
180. Steven Company has fixed costs of $160,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products are provided below.
Product
Selling PriceVariable Cost
per UnitContribution Margin
per Unit
X$180$80$100
Y$100$50$50
The sales mix for product X and Y is 60% and 40% respectively. Determine the break-even point in units of X and Y.