In 2015, X Company had the following selling price and per-unitvariable cost information:
Selling price $186.00 Direct materials 43.10 Direct labor 14.30 Variable overhead 24.20 Variable selling and administrative 16.90
In 2015, fixed overhead costs were $374,000, and fixed selling andadministrative costs were $260,000.
In 2016, there are only two expected changes. Direct material costsare expected to decrease by 20% per unit, and fixed selling andadministrative costs are expected to increase by $20,000. What mustunit sales be in order for X Company to break even in 2016?
In 2015, X Company had the following selling price and per-unitvariable cost information:
| Selling price | $186.00 | ||
| Direct materials | 43.10 | ||
| Direct labor | 14.30 | ||
| Variable overhead | 24.20 | ||
| Variable selling and administrative | 16.90 | ||
In 2015, fixed overhead costs were $374,000, and fixed selling andadministrative costs were $260,000.
In 2016, there are only two expected changes. Direct material costsare expected to decrease by 20% per unit, and fixed selling andadministrative costs are expected to increase by $20,000. What mustunit sales be in order for X Company to break even in 2016?
Related questions
In 2015, X Company had the following selling price and per-unitvariable cost information:
| Selling price | $167.80 | ||
| Direct materials | 31.40 | ||
| Direct labor | 28.60 | ||
| Variable overhead | 34.60 | ||
| Variable selling and administrative | 28.80 | ||
In 2015, fixed overhead costs were $359,000, and fixed selling andadministrative costs were $256,000.
In 2016, there are only two expected changes. Direct material costsare expected to increase by 10% per unit, and fixed selling andadministrative costs are expected to increase by $20,000. What mustunit sales be in order for X Company to break even in 2016?
In 2015, X Company had the following selling price and per-unitvariable cost information:
| Selling price | $174.10 | ||
| Direct materials | 39.20 | ||
| Direct labor | 10.40 | ||
| Variable overhead | 35.40 | ||
| Variable selling and administrative | 13.30 | ||
In 2015, fixed overhead costs were $351,000, and fixed selling andadministrative costs were $278,000.
In 2016, there are only two expected changes. Direct material costsare expected to decrease by 10% per unit, and fixed selling andadministrative costs are expected to increase by $10,000. What mustunit sales be in order for X Company to break even in 2016?
The Clyde Corporation's variable expenses are 40% of sales.Clyde Corporation is contemplating an advertising campaign thatwill cost $28,000. If sales increase by $78,000, the company's netoperating income will increase by: |
$3,200
$31,200
$18,800
$63,600
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Deboer Company, which has only one product, has provided thefollowing data concerning its most recent month of operations: |
| Selling price | $161 |
| Units in beginninginventory | 50 |
| Units produced | 1,550 |
| Units sold | 1,580 |
| Units in endinginventory | 20 |
| Variable costs perunit: | |
| Directmaterials | $53 |
| Direct labor | $30 |
| Variablemanufacturing overhead | $7 |
| Variable selling andadministrative | $12 |
| Fixed costs: | |
| Fixed manufacturingoverhead | $15,500 |
| Fixed selling andadministrative | $39,500 |
| What is the total period costfor the month under the variable costing approach? |
$55,000
$73,960
$58,460
$15,500
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HarrisCorporation produces a single product. Last year, Harrismanufactured 32,210 units and sold 26,700 units. Production costsfor the year were as follows: |
| Fixed manufacturingoverhead | $418,730 |
| Variablemanufacturing overhead | $251,238 |
| Direct labor | $157,829 |
| Directmaterials | $241,575 |
Sales were $1,241,550, for the year, variable selling andadministrative expenses were $138,840, and fixed selling andadministrative expenses were $199,702. There was no beginninginventory. Assume that direct labor is a variable cost. |
The contribution margin per unit would be: (Do not roundintermediate calculations.) |
$26.30 per unit
$16.80 per unit
$22.80 per unit
$21.10 per unit
