accounting 2

Allen Company sells flags with team logos. Allen has fixed costs of $ 875000 per year plus variable costs of $ 12.50 per flag. Each flag sells for $ 25.00.
1-Use the equation approach to compute the number of flags Allen must sell each year to break even.
2- Prepare Allen​'s contribution margin income statement for the year ended December 31​, 2018​, for sales of 61 comma 000 flags.​ (Round your final answers up to the next whole​ number.)
3-The company is considering an expansion that will increase fixed costs by 40 % and variable costs by $ 2.50 per flag. Compute the new breakeven point in units and in dollars. Should Allen undertake the​ expansion?

  1. 👍
  2. 👎
  3. 👁

Respond to this Question

First Name

Your Response

Similar Questions

  1. Ethics

    M.K. Gallant is president of Kranbrack Corporation, a company whose stock is traded on a national exchange. In a meeting with investment analysts at the beginning of the year, Gallant had predicted that the company’s earnings

  2. maths

    It costs a publishing company $50000 to make books. The $50000 is a fixed cost or a cost that cannot change. To help the publishing company sell the books, a marketing company charges $4 for each book sold. If the company sells

  3. Ethics in Accounting

    M.K. Gallant is president of Kranbrack Corporation, a company whose stock is traded on a national exchange. In a meeting with investment analysts at the beginning of the year, Gallant had predicted that the company’s earnings

  4. Math

    Mr. Ford has 78 cattle on his farm. That is 3 times the number of cattle Mrs. Metcalf has on her farm. How many cattle, c, does Mrs. Metcalf have? 3 ______________ c is 78. a. less than b. more than c. times as many as *********

  1. ACCOUNTING

    Gardner Manufacturing Company produces a product that sells for $120. A selling commission of 10% of the selling price is paid on each unit sold. Variable manufacturing costs are $60 per unit. Fixed manufacturing costs are $20 per

  2. physics

    52. Bryan Allen pedaled a human-powered aircraft across the English Channel from the cliffs of Dover to Cap Gris-Nez on June 12, 1979. (a) He flew for 169 min at an average velocity of 3.53 m/s in a direction 45º south of east.

  3. math

    Lucy's hockey team sells candy bars at 2$ each. It costs the team 50 cents to purchase each bar, with a fixed shipping cost of $35. How many bars must be sold for the team to earn 100$? what is the formula i use?

  4. Check math please!

    Anna mixes the letters S, E, L, E, C, T, E, and D thoroughly. Without looking, Mary draws one letter. Expressed as a fraction, decimal, and percentage, what is the probability that E will NOT be the letter Mary selects? A. 3/8,

  1. math

    Allen was earning $30,000 working for a small business. The business had a bad year, and Allen was asked to take a 10% cut in pay with the assurance that he would receive a 10% increase in salary the following year. If Allen

  2. Math 156

    Allen was earning $30,000 working for a small business. The business had a bad year, and Allen eas asked to take a 10% cut in pay with the assurance that he would receive a 10% increase in salary the following year. If allen

  3. maths

    Allen Young has always been proud of his personal investment strategies and has done very well over the past several years. He invests primarily in the stock market. Over the past several months, however, Allen has become very

  4. Which sentence is a commonplace assertion?

    Which sentence is a commonplace assertion? A. We all know that Texans are mad about football, and the players usually get the attention. B.Known as the Allen Eagles Escadrille (French for "squadron"), Allen's band is considered

You can view more similar questions or ask a new question.