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frosja888 [35]
3 years ago
10

Mr. Rios decided to make a business in his class by selling AP review books for all AP students. His fixed cost to begin the bus

iness is $500. The sales price for each book is $5. The extra labor and material costs per unit will be $1.25. How many books does he need to sell to break even?
Business
2 answers:
DIA [1.3K]3 years ago
8 0

Answer:

134 books

Explanation:

The breakeven point is the number of units to be sold that will make the total sales equivalent with the total cost, such that the company neither makes a profit nor a loss.

Let the number of units sold to break even be c

5c = 1.25c + 500

5c - 1.25c = 500

3.75c = 500

c = 500/3.75

c = 133.33

≈ 134 books

Dima020 [189]3 years ago
4 0

Answer:

134 books

Explanation:

The formula used to calculate the break even point in units is:

break even point = total fixed costs / contribution margin

  • total fixed costs = $500
  • contribution margin = selling price - variable costs = $5 - $1.25 = $3.75

break even point = $500 / $3.75 = 133.3 books ≈ 134 books

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Brody Corp. uses a process costing system. Beginning inventory for January consisted of 1,300 units that were 40% completed. 13,
Aneli [31]

Answer:

completed units = 13,650

Explanation:

given data

Beginning inventory = 1,300 units

completed = 40 %

started = 13,000 units

inventory consisted = 650 units

completed = 70%

solution

we get here completed units that is express as

completed units = Beginning inventory + started unit -  ending inventory  ..............................1

put here value and we get

completed units = 1,300 + 13,000 - 650

completed units = 13,650

6 0
3 years ago
Roen Company incurred an activity cost of $105,600 for inspecting 40,000 units of production. Management determined that the ins
Lina20 [59]

Answer:

Inspection activity cost per unit on 40,000 units of total production:

1) Before Improvement is $2.64 per unit

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Explanation:

In order to calculate activity cost per unit we divide activity cost with the total number of units, as calculated below:

Activity cost / Number of Units = Activity cost per unit

105,600 / 40,000 = 2.64

Hence, the inspection activity cost per unit of the total production before improvement is $2.64 per unit.

Now, to determine the activity cost per unit after the improvement we first multiple the current cost per unit with the random sample to calculate the new cost.

Then we divide the new activity cost with the total number of units. This is shown below:

Random Sample of Units x Activity cost per unit = New activity cost

5,000 x 2.64 = $13,200

New activity cost / Number of total units = Activity cost per unit (After Improvement)

13,200 / 40,000 = $0.33

Hence, the inspection activity cost per unit of the total production after improvement is $0.33 per unit.

3 0
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The following information is available for Ethtridge Manufacturing Company for the month ending July 31:
babunello [35]

Answer:

                             Statement of cost of goods manufactured

Work in process inventory, July 1                                                 $316,400

Add:  Cost of direct materials used in production  $1,150,000

Direct labor                                                                $966,000

Total factory overhead                                              <u>$490,500</u>

Total manufacturing cost incurred                                               <u>$2,606,500</u>

Total manufacturing costs                                                            $2,922,900

Less: Work in process inventory, July 31                                     <u>$355,500</u>

Cost of goods manufactured                                                       <u>$2,567,400</u>

5 0
3 years ago
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