Need help on this Study Problem.

Chevy's Manufacturing has fixed costs (e.g. depreciation) of $40,000 which can be directly attributable to producing a particular product. the product sells for $2 a unit and variable costs are $1.20. What is the break-even point in units? Suppose the firm sold 100,000 units last year and expects volume to increase by 10 percent. What percentage increase in profits would Chevy's see with this increase in volume?

Ok, price less variable costs is 80 cents per unit. How many units are needed to cover the $40,000?

b) calculate the net profit at 100,000 and 110,000.

  1. 👍
  2. 👎
  3. 👁

Respond to this Question

First Name

Your Response

Similar Questions

  1. accounting

    "Harris Company manufactures and sells a single product. A partically completed schedule of the company's total and per unit cost over the relevant range of 30,000 to 50,000 per units produced and sold are: United produced and

  2. accounting

    Looking at this question and not sure why fixed cost is 2,000 and not 6,000. ********** Galley Industries can produce 100 units of necessary component parts with the following costs: Direct Materials $20,000 Direct Labor 9,000

  3. Principles of Finance HELP!!!

    Problem 16-7. Pro forma income statement At the end of last year, Roberts Inc. reported the following income statement (in millions of dollars): Sales 3000 Operating costs excluding depreciation 2450 EBITDA 550 Depreciation 250

  4. cost accounting

    The East Company manufactures several different products. Unit costs associated with Product ORD203 are as follows: Direct materials $50 Direct manufacturing labor 8 Variable manufacturing overhead 10 Fixed manufacturing overhead

  1. accouting

    Nancy Company has budgeted sales of $300,000 with the following budgeted costs: Direct materials $60,000 Direct manufacturing labor 40,000 Factory overhead Variable 30,000 Fixed 50,000 Selling and administrative expenses Variable

  2. Accounting

    The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours @ $.80 per hour Variable overhead 3

  3. Math Question

    A product may be made using machine I or machine II. The manufacturer estimates that the monthly fixed costs of using machine I are $18,000, whereas the monthly fixed costs of using machine II are $15,000. The variable costs of

  4. Accounting

    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

  1. Accounts

    A manufacturing Company produces 2 products – A and B. The following information is presented for both products: A B Selling Price per unit $18 $12 Variable Cost per unit $14 $6 Total Fixed Costs are $468,000. Compute: The

  2. Accounting 3

    What arguments can be advanced in favor of treating fixed manufacturing overhead costs as product costs? What arguments can be advanced in favor of treating fixed manufacturing overhead costs as period costs? Which arguments do

  3. finance

    Would each of the following increase, decrease, or have an indeterminant effect on a firm’s breakeven point (unit sales)? a. An increase in the sales price with no change in unit costs. b. An increase in fixed costs accompanied

  4. Managerial 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

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