GHA-week 4

As production decreases, fixed costs per unit will

At production levels below the breakeven point,

Breakeven analysis adjusted for a targeted profit

Campbell Inc. earned sales revenue of $150,000 in 2014. Campbell sells each unit of its product for $6.00 and has a 32 percent contribution margin. Campbell has fixed costs of $36,000.
What is Cambell’s breakeven point in sales dollars?

Excerpts from a cost-volume-profit analysis indicate fixed costs of $30,000, a variable cost per unit of $36, a selling price of $60, and a sales level of $125,000. The targeted level of profit must be

Excerpts from cost-volume-profit analysis of Nutshell Inc. indicate fixed costs of $85,000, a contribution margin per unit of $40, a selling price of $95, and a sales level of 4,000 units. What must be the targeted level of profit?

Edward Cheezer's Inc. makes and sells frozen four-cheese pizzas, New York–style. The expected selling price is $10 per pizza. The projected variable cost per pizza is $6. The estimated fixed costs per month are $10,000.

If 6,000 pizzas are sold in a given month and fixed costs increase by $5,000, the overall profit is

Edward Cheezer's Inc. makes and sells frozen four-cheese pizzas, New York–style. The expected selling price is $10 per pizza. The projected variable cost per pizza is $6. The estimated fixed costs per month are $10,000.

The number of pizzas that must be sold to obtain a monthly profit of $20,000 is

Clark International produces designer watches. Each watch requires materials worth $14.50 and three direct labor hours. The company pays its production supervisor a salary of $500 per week. Hourly wage rate at Clark is $5. If 25 watches are produced in a week, what is the fixed cost per watch?

Cristy Lake Inc. sold goods worth $144,000 in 2014. It sells each unit for $5.50 and has a 30 percent contribution margin. The company’s fixed costs amount to $33,000.
Calculate Cristy’s breakeven point in units.