Accounting Chapter 5 3 Steeler Corporation Planning Sell 100000 Units

subject Type Homework Help
subject Pages 14
subject Words 1364
subject Authors Eric Noreen, Peter Brewer, Ray Garrison

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55. Steeler Corporation is planning to sell 100,000 units for $2.00 per unit and will break even
at this level of sales. Fixed expenses will be $75,000. What are the company's variable expenses
per unit?
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56. Garcia Veterinary Clinic expects the following operating results next year:
Sales (total) $600,000
Variable expenses (total) $120,000
Fixed expenses (total) $300,000
What is Garcia's break-even point next year in sales dollars?
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57. Holdt Inc. produces and sells a single product. The selling price of the product is $230.00
per unit and its variable cost is $66.70 per unit. The fixed expense is $212,290 per month. The
break-even in monthly unit sales is closest to:
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58. Carlton Corporation sells a single product at a selling price of $40 per unit. Variable
expenses are $22 per unit and fixed expenses are $82,800. Carlton's break-even point is:
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59. Lore Corporation has provided the following information:
Sales $200,000
Variable expenses $40,000
Fixed expenses $10,000
Lore's break-even point in dollar sales is:
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60. Darwin Inc. sells a particular textbook for $20. Variable expenses are $14 per book. At the
current volume of 50,000 books sold per year the company is just breaking even. Given these
data, the annual fixed expenses associated with the textbook total:
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61. Blane Corporation produces and sells a single product. Data concerning that product
appear below:
Selling price per unit $230.00
Variable expense per unit$73.60
Fixed expense per month $542,708
The break-even in monthly unit sales is closest to:
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62. Data concerning Wang Corporation's single product appear below:
Selling price per unit $150.00
Variable expense per unit $49.50
Fixed expense per month $138,690
The break-even in monthly dollar sales is closest to:
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63. Wyly Inc. produces and sells a single product. The selling price of the product is $170.00
per unit and its variable cost is $62.90 per unit. The fixed expense is $356,643 per month.
The break-even in monthly dollar sales is closest to:
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64. Preyer Corporation produces and sells a single product. Data concerning that product
appear below:
Selling price per unit $230.00
Variable expense per unit $48.30
Fixed expense per month $492,407
The break-even in monthly dollar sales is closest to:
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65. Data concerning Nazario Corporation's single product appear below:
Selling price per unit $230.00
Variable expense per unit $85.10
Fixed expense per month $188,370
The break-even in monthly unit sales is closest to:
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66. The following monthly data are available for the Wyatt Corporation and its only product:
Unit selling price $36
Unit variable expenses $28
Total fixed expenses $50,000
Actual sales for the month of May 7,000 units
The margin of safety for the company during May was:
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67. Frank Corporation manufacturers a single product that has a selling price of $20.00 per
unit. Fixed expenses total $45,000 per year, and the company must sell 5,000 units to break even.
If the company has a target profit of $13,500, sales in units must be:
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68. Chibu Corporation is a single product firm with the following cost formula for all of its
costs for next year, where X is the number of units sold and Y is total cost:
Y = $225,000 + $30X
Chibu sells its product for $120 per unit. What would Chibu's total sales dollars have to be next
year in order to generate $270,000 of net operating income?
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69. Data concerning Cutshall Enterprises Corporation's single product appear below:
Selling price per unit $190.00
Variable expense per unit$91.20
Fixed expense per month $424,840
The unit sales to attain the company's monthly target profit of $16,000 is closest to:
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70. The Breiden Corporation sells rodaks for $6.00 per unit. Fixed expenses total $37,500 per
month and variable expenses are $2.00 per unit. The number of units that must be sold each
month to realize a profit of 15% of sales is closest to:
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71. The contribution margin ratio of Baginski Corporation's only product is 53%. The
company's monthly fixed expense is $617,980 and the company's monthly target profit is $23,000.
The dollar sales to attain that target profit is closest to:
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72. Havely International Corporation's only product sells for $200.00 per unit and its variable
expense is $70.00. The company's monthly fixed expense is $390,000 per month. The unit sales
to attain the company's monthly target profit of $10,000 is closest to:
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73. Moonen Corporation produces and sells a single product whose contribution margin ratio
is 57%. The company's monthly fixed expense is $487,350 and the company's monthly target
profit is $10,000. The dollar sales to attain that target profit is closest to:
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74. Sanes Corporation produces and sells a single product. Data concerning that product
appear below:
Selling price per unit $240.00
Variable expense per unit$88.80
Fixed expense per month $498,960
The unit sales to attain the company's monthly target profit of $19,000 is closest to:

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