Business, 14.12.2019 02:31 xxtonixwilsonxx

Ritchie manufacturing company makes a product that it sells for $150 per unit. the company incurs variable manufacturing costs of $60 per unit. variable selling expenses are $18 per unit, annual fixed manufacturing costs are $480,000, and fixed selling and administrative costs are $240,000 per year.

determine the break-even point in units and dollars using the equation method, the contribution margin per unit approach and the contribution margin ratio approach.

a. break-even point in units
break-even point in dollars
b. contribution margin per unit
break-even point in units
break-even point in dollars
prepare a contribution margin income statement for the break-even sales volume.

Answers: 2

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Answer from: hussain34

a. Selling price = $150

Variable cost per unit = $60 + $18 = $78

Total fixed cost = $480,000 + $240,000 = $720,000

Fixed cost = BEP (Selling price - Variable cost per unit)

$720,000 = BEP ($150 - $78)

$720,000 = BEP ($72)

BEP = $720,000/$72

BEP (units) = 10,000 units

BEP (dollars) = BEP units x selling price

= 10,000 x $150

= $1,500,000

b. Contribution margin per unit = Selling price - Variable cost per unit

= $150 - $78 = $72

c. Contribution margin income statement: $

Total contribution ($72 x 10,000 units) 720,000

Less: Total fixed cost 720,000

Net profit 0

Explanation:

BEP (units) is equal to fixed cost divided by contribution per unit

BEP (dollars) is equal to break-even point in units x selling price

Contribution per unit is equal to selling price less variable cost per unit

Answer from: Quest

dez nutz lol

explanation:

Answer from: Quest

Via: "if you are found to be supplying or dealing drugs, the punishment is likely to be tough. supplying drugs doesn’t just apply to dealers. if police suspect that you intend to share drugs with your friends, this is still considered to be supplying.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

- up to life in prison or an unlimited fine (or both) for a class a drug- up to 14 years in prison or an unlimited fine (or both) for a class b or class c drug."sorry if this was a school question, you didnt supply options so i assumed it was a personal question, which if it is, reconsider selling or having possesion of any drugs at all. i wish you the best!

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Ritchie manufacturing company makes a product that it sells for $150 per unit. the company incurs va...