19 May QuestionManagerial Accounting
Question
Managerial Accounting
- Zoro, Inc. produces a product that has a variable cost of $6.00 per unit. The company’s fixed costs are $30,000. The product sells for $10.00 a unit and the company desires to earn a $20,000 profit. What is the volume of sales in units required to achieve the target profit?
- Felix Company produces a product that has a selling price of $12.00 and a variable cost of $9.00 per unit. The company’s fixed costs are $60,000. What is the breakeven point measured in sales dollars?
- Kritzberg Company sells a product at $60 per unit that has unit variable costs of $40. The company’s break-even sales volume is $120,000. How much profit will the company make if it sells 4,000 units?
- Berkut Company would break even at $600,000 in total sales. Assuming the company sells its product for $50 per unit, what is its margin of safety in units if budgeted sales total $800,000?
- The Euro Company sells two kinds of luggage. The company projected the following cost information for the two products:
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