Friday
April 18, 2014

Homework Help: Accounting

Posted by Ty on Wednesday, July 4, 2012 at 2:07pm.

CollegePak Company produced and sold 60,000 backpacks during the year just ended at an average price of $20 per unit. Variable manufacturing costs were $8 per unit, and variable marketing costs were $4 per unit sold. Fixed costs amounted to $180,000 for manufacturing and $72,000 for marketing. There was no year-end work-in-process inventory. (Ignore income taxes.)
1. Compute CollegePak's break-even point in sales dollars for the year.
2. Compute the number of sales units required to earn a net income of $180,000 during the year.
3. CollegePak's variable manufacturing costs are expected to increase by 10 percent in the coming year. Compute the firm's break-even point in sales dollars for the coming year.
4. If CollegePak's variable manufacturing costs do increase by 10 percent, compute the selling price that would yield the same contribution-margin ratio in the coming year.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

accounting - "Harris Company manufactures and sells a single product. A ...
Intermediate Accounting I - On January 1, 2007, the Accumulated Depreciation-...
Accounting - Max Stevenson owns a local drug store. During the past few years, ...
accounting - 6. Acme Manufacturing Company estimates factory overhead as a ...
business - At the end of January, Mineral Labs had inventory of 725 units, which...
accounting - On January 1, 2012, Lexmark Company's Accounts receivable account ...
accounting - Carlton company had assetsof $280,000 & liabilities of $120,000 at ...
Accounting - Absorption Income versus Contribution Margin Income Absorption ...
accounting - State Company manufactured a forklift machine at a cost of $60,000...
accounting - O'Hara Inc. made sales of $310,000 during 2008, it's first year of ...

Search
Members