Use the below table to answer the following questions. Selling Price = $33.00 Sales Volume Fixed Cost Variable Cost 1,700 2,700 3,700 4,700 5,700 Profitability $ 30,800 7 $ 13,400 $ 39,400 $ 65,400 $ 91,400 $ 117,400 30,800 8 11,700 36,700 61,700 86,700 111,700 30,800 9 10,000 34,000 58,000 82,000 106,000 40,800 7 3,400 29,400 55,400 81,400 107,400 40,800 8 1,700 26,700 51,700 76,700 101,700 40,800 9 – 24,000 48,000 72,000 96,000 50,800 7 (6,600 ) 19,400 45,400 71,400 97,400 50,800 8 (8,300 ) 16,700 41,700 66,700 91,700 50,800 9 (10,000 ) 14,000 38,000 62,000 86,000 Required Determine...

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Accounting

Use the below table to answer the following questions.
Selling Price = $33.00
Sales Volume
Fixed Cost Variable Cost 1,700 2,700 3,700 4,700 5,700
Profitability
$ 30,800 7 $ 13,400 $ 39,400 $ 65,400 $ 91,400 $ 117,400
30,800 8 11,700 36,700 61,700 86,700 111,700
30,800 9 10,000 34,000 58,000 82,000 106,000
40,800 7 3,400 29,400 55,400 81,400 107,400
40,800 8 1,700 26,700 51,700 76,700 101,700
40,800 9 – 24,000 48,000 72,000 96,000
50,800 7 (6,600 ) 19,400 45,400 71,400 97,400
50,800 8 (8,300 ) 16,700 41,700 66,700 91,700
50,800 9 (10,000 ) 14,000 38,000 62,000 86,000

Required
Determine the sales volume, fixed cost, and variable cost perunit at the break-even point.
Determine the expected profit if Benson projects the followingdata for Delatine: sales, 3,700 bottles; fixed cost, $30,800; andvariable cost per unit, $9.
Benson is considering new circumstances that would change theconditions described in Required b. Specifically, thecompany has an opportunity to decrease variable cost per unit to $7if it agrees to conditions that will increase fixed cost to$40,800. Volume is expected to remain constant at 3,700 bottles.Determine the effects on the company’s profitability if thisopportunity is accepted.

Answer & Explanation Solved by verified expert

4.1 Ratings (513 Votes)

a Break even point refers to the volume of output where a firm earns no profits and suffers no losses From the table given in the question it can be seen that See Answer

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Use the below table to answer the following questions.Selling Price = $33.00Sales VolumeFixed CostVariable Cost1,7002,7003,7004,7005,700Profitability$30,8007$13,400$39,400$65,400$91,400$117,40030,800811,70036,70061,70086,700111,70030,800910,00034,00058,00082,000106,00040,80073,40029,40055,40081,400107,40040,80081,70026,70051,70076,700101,70040,8009–24,00048,00072,00096,00050,8007(6,600)19,40045,40071,40097,40050,8008(8,300)16,70041,70066,70091,70050,8009(10,000)14,00038,00062,00086,000RequiredDetermine the sales volume, fixed cost, and variable cost perunit at the break-even point.Determine the expected profit if Benson projects the followingdata for Delatine: sales, 3,700 bottles; fixed cost, $30,800; andvariable cost per unit, $9.Benson is considering new circumstances that would change theconditions described in Required b. Specifically, thecompany has an opportunity to decrease variable cost per unit to $7if it agrees to conditions that will increase fixed cost to$40,800. Volume is expected to remain constant at 3,700 bottles.Determine the effects on the company’s profitability if thisopportunity is accepted.

			Sales Volume
Fixed Cost		Variable Cost		1,700			2,700		3,700		4,700		5,700
Fixed Cost		Variable Cost		Profitability
$	30,800	7		$	13,400		$	39,400	$	65,400	$	91,400	$	117,400
	30,800	8			11,700			36,700		61,700		86,700		111,700
	30,800	9			10,000			34,000		58,000		82,000		106,000
	40,800	7			3,400			29,400		55,400		81,400		107,400
	40,800	8			1,700			26,700		51,700		76,700		101,700
	40,800	9			–			24,000		48,000		72,000		96,000
	50,800	7			(6,600	)		19,400		45,400		71,400		97,400
	50,800	8			(8,300	)		16,700		41,700		66,700		91,700
	50,800	9			(10,000	)		14,000		38,000		62,000		86,000