Concept Introduction:
Cost Volume Profit (CVP) Analysis:
The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.
Breakeven Point:
The Breakeven point is the level of sales at which the net profit is nil. It can be explained as a situation where the business is generating a sale that is equal to the expenses incurred and hence no
Requirement-a:
To Calculate:
The Current Breakeven sales units
Concept Introduction:
Cost Volume Profit (CVP) Analysis:
The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.
Breakeven Point:
The Breakeven point is the level of sales at which the net profit is nil. It can be explained as a situation where the business is generating a sale that is equal to the expenses incurred and hence no profits no loss. Breakeven point in $ is calculated with the help of following formula:
Requirement-b:
To Calculate:
The Anticipated Breakeven sales units
Want to see the full answer?
Check out a sample textbook solutionChapter 11 Solutions
Survey of Accounting (Accounting I)
- Currently, the unit selling price is $34, the variable cost is $14, and the total fixed costs, $96,000. A proposal is being evaluated to increase the selling price to $38. (a) Compute the current break-even sales (units). (b) Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. (a) (b)arrow_forwardCurrently, the unit selling price of a product is $750, the unit variable cost is $600, and the total fixed costs are $2,550,000. A proposal is being evaluated to increase the unit selling price to $800. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $800, and all costs remain constant. unitsarrow_forwardurrently, the unit selling price of a product is $410, the unit variable cost is $340, and the total fixed costs are $1,176,000. A proposal is being evaluated to increase the unit selling price to $460. a. Compute the current break-even sales (units).fill in the blank 1 of 1 units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.fill in the blank 1 of 1 unitsarrow_forward
- Break-Even Sales Currently, the unit selling price of a product is $390, the unit variable cost is $320, and the total fixed costs are $1,176,000. A proposal is being evaluated to increase the unit selling price to $440. a. Compute the current break-even sales (units) units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $440, and all costs remain constant unitsarrow_forwardBreak-Even Sales Currently, the unit selling price of a product is $7,520, the unit variable cost is $4,400, and the total fixed costs are $23,400,000. A proposal is being evaluated to increase the unit selling price to $8,000. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. unitsarrow_forwardCurrently, the unit selling price of a product is $410, the unit variable cost is $340, and the total fixed costs are $1,176,000. A proposal is being evaluated to increase the unit selling price to $460. a. Compute the current break-even sales (units).fill in the blank 1 units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.fill in the blank 2 unitsarrow_forward
- Break-even sales Currently, the unit selling price of a product is $270, the unit variable cost is $220, and the total fixed costs are $520,000. A proposal is being evaluated to increase the unit selling price to $300. a. Compute the current break-even sales (units).fill in the blank 1 of 1 units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.fill in the blank 1 of 1 unitsarrow_forwardCurrently, the unit selling price of a product is $340, the unit variable cost is $280, and the total fixed costs are $720,000. A proposal is being evaluated to increase the unit selling price to $380. a. Compute the current break-even sales (units).fill in the blank 1 units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $380, and all costs remain constant.fill in the blank 2 unitsarrow_forwardBreak-Even Sales Currently, the unit selling price of a product is $400, the unit variable cost is $330, and the total fixed costs are $1,176,000. A proposal is being evaluated to increase the unit selling price to $450. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $450, and all costs remain constant. units Check My Work Previous Next 2 more Check My Work uses remaining.arrow_forward
- Currently, the unit selling price of a product is $200, the unit variable cost is $160, and the total fixed costs are $408,000. A proposal is being evaluated to increase the unit selling price to $220. a. Compute the current break-even sales (units). 8,400 X units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. 5,600 X unitsarrow_forwardBreak-Even Sales Currently, the unit selling price of a product is $290, the unit variable cost is $240, and the total fixed costs are $765,000. A proposal is being evaluated to increase the unit selling price to $330. a. Compute the current break-even sales (units).units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.unitsarrow_forwardBreak-Even Sales Currently, the unit selling price of a product is $240, the unit variable cost is $200, and the total fixed costs are $336,000. A proposal is being evaluated to increase the unit selling price to $270. a. Compute the current break-even sales (units). fill in the blank 1 units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $270, and all costs remain constant. fill in the blank 2 units dont give handwritten answers thank youarrow_forward
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub