1BP_b Shock Electronics sells portable... [FREE SOLUTION]

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Foundations Of Financial Management

Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen

Business Studies

16th Edition 路 768 pages

ISBN: 9781259277160

Chapter 2: 1BP_b (page 145)

Shock Electronics sells portable heaters for $35 per unit, and the variable cost to produce them is $22. Mr. Amps estimates that the fixed costs are $97,500.
b. Fill in the table (in dollars) to illustrate the break-even point has been achieved.
Sales
Fixed cost
Total variable cost
Net profit (loss)

Short Answer

Expert verified

Sales	$262,500
Fixed cost	(97,500)
Total variable cost	(165,000)
Net profit (loss)	0

Step by step solution

Sales

$\begin{array}{rcl} Sales & = & Number of break even units 脳 Selling price per unit \\ = & 7, 500 脳 $ 35 \\ = & $ 262, 500 \end{array}$

Total variable cost

$\begin{array}{rcl} Variable cost & = & Number of units sold 脳 Variablecost per unit \\ = & 7, 500 脳 $ 22 \\ = & $ 165, 000 \end{array}$

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Selling and administrative expenses	$328,000
Depreciation expenses	195,000
Sales	1,660,000
Interest expenses	129,000
Cost of goods sold	560,000
Taxes	171,000

Cash	\)163,000
Accounts receivable	889,000
Inventory	411,000
New plant and equipment	520,000
Total assets	$1,983,000

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Short Answer

Step by step solution

Sales

Total variable cost

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91影视

Shock Electronics sells portable heaters for \(35 per unit, and the variable cost to produce them is \)22. Mr. Amps estimates that the fixed costs are $97,500.b. Fill in the table (in dollars) to illustrate the break-even point has been achieved.SalesFixed costTotal variable costNet profit (loss)

Short Answer

Step by step solution

Sales

Total variable cost

One App. One Place for Learning.

Most popular questions from this chapter

Recommended explanations on Business Studies Textbooks

International Business

Business Operations

Strategic Direction

Organizational Behavior

Accounting

Insurance

Study anywhere. Anytime. Across all devices.