Yamakawa Corporation produces and sells a single product. Data concerning that product appears below: Selling...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Yamakawa Corporation produces and sells a single product. Data concerning that product appears below:
Selling price per unit....... $200.00
Variable expense per unit......... $64.00
Fixed expenses per month........ $670,480
----
Breakeven point in unit sales = 4,930 units
Breakeven point in sales dollars = $986,000
------
1) If fixed expenses decrease to $663,408, what is the new breakeven point in units AND sales dollars?
2) If fixed expenses stay at $670,480 and selling price stays at $200.00, but variable expense per unit decrease to $55 per unit, what is the new breakeven point in units AND sales dollars?
3) If selling price stays at $200.00, variable expense stays at $64.00, but fixed expenses decrease to $664,840, how many units must be sold to make a target profit of $24,000?
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!
