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 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.

  1. 👍
  2. 👎
  3. 👁
  1. 1. $630,000
    2. 54,000 units
    3. $ 600,000
    4. $32

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. Algebra 2

    Designer Dolls, Inc. found that the number N of dolls sold varies directly with their advertising budget A and inversely with the price P of each doll. The company sold 1,800 dolls when $34,000.00 was spent on advertising, and the

  2. math

    Designer Dolls, Inc. found that the number N of dolls sold varies directly with their advertising budget A and inversely with the price P of each doll. The company sold 5200 dolls when $26,000 was spent on advertising and the

  3. accounting

    On October 31, a flood at Payne Company’s only warehouse caused severe damage to its entire inventory. Based on recent history, Payne has a gross profit of 25 percent of net sales. The following information is available from

  4. MAT201-Basic Statistics

    A dealership sold 15 cars last month. The purchase price of the cars, rounded to the nearest thousand, is represented in the table Purchase Price/# of cars sold $15,000 3 $20,000 4 $23,000 5 $25,000 2 $45,000 1 A.Find the mean and

  1. Math

    A company is deciding between two different car models as it updates its fleet of cars. The purchase price for model A is $30,000, and the price for model B is $35,000. However, model A has an average gas mileage of 27 miles per

  2. economics

    A firm that sells e-books – books in digital form downloadable from the Internet – sells all e-books relating to do-it-yourself topics (home plumbing, gardening, and so on) at the same price. At present, the company can earn a

  3. Research and Statistics

    2. The results of a recent survey indicate that the average new car costs $23,000, with a standard deviation of $3,500. The price of cars is normally distributed. a. What is a Z score for a car with a price of $ 33,000? 9.415000

  4. 12th Calculus

    it cost you c dollars each to manufacture and distribute backpacks. if the backpacks sell at x dollars each, the number sold is given by n=(a/x-c)+b(100-x) where a and b are certain positive constanst. what selling price will

  1. algebra

    An electronics company has developed a new hand-held device. The company predicts that the start-up cost to manufacture the new product will be $125,000, and the cost to make one device will be $6.50. A. If the company plans on

  2. finance

    Your company is considering a replacement of an old delivery van with a new one that is more efficient. The old van cost $30,000 when it was purchased 5 years ago. The old van is being depreciated using the simplified straight

  3. accounting

    The accounting records of NuTronics, Inc., include the following information for the year ended December 31, 2011. Dec. 31 Jan. 1 Inventory of materials $ 24,000 $ 20,000 Inventory of work in process 8,000 12,000 Inventory of

  4. business

    You have recently learned that the company where you work is being sold for $275,000. The company’s income statement indicates current profits of $10,000 which have yet to be paid out as dividends. Assuming the company will

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