Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. xyz company is planning to manufacture and sell a

XYZ Company is planning to manufacture and sell a new product. The selling price...

90.2K

Verified Solution

Question

Accounting

XYZ Company is planning to manufacture and sell a new product.
The selling price for each unit is set at $0.50. The company
expects to produce and sell 40,000 units of this product. The
following table provides a breakdown of the costs associated with
the production and sale of the product. Givin the following table, find the awnsers to the following questions. 1.Calculate the variable cost per unit.
2.Calculate the contribution margin per unit.
3.Determine the breakeven point in units.
4.Determine the breakeven point in dollars.
5.Based on the planned production and sale of 40,000 units,
calculate the expected profit or loss.
6.If the company wants to achieve a profit of $5,000, how many
units should they sell? Hint: Add the desired profit to the total
fixed costs, then divide the result by the contribution margin per
unit.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students