Prepare breakeven analysis and a C-V-P analysis planning future sales using the information below. (100 pts)Breakeven Analysis and Planning Future SalesWrite Company has a maximum capacity of 200,000 units per year. Variable manufacturing costs are $12 per unit. Fixed overhead is $600,000 per year. Variable selling, and administrative costs are $5 per unit, and fixed selling and administrative costs are $300,000 per year. The current sales price is $23 per unit.Required1. What is the breakeven point in (a) sales units and (b) sales dollars?2. How many units must Write Company sell to earn a profit of $240,000 per year?3. A strike at one of the companyâ€™s major suppliers has caused a shortage of materials, so the current yearâ€™s production and sales are limited to 160,000 units. To partially offset the effect of the reduced sales on profit, management is planning to reduce fixed costs to $841,000. Variable cost per unit is the same as last year. The company has already sold 30,000 units at the regular selling price of $23 per unit.a. What amount of fixed costs was covered by the total contribution margin of the first 30,000 units sold?b. What contribution margin per unit will be needed on the remaining 130,000 units to cover the remaining fixed costs and to earn a profit of $210,000 this year? Â Share this:TwitterFacebook
Prepare breakeven analysis and a C-V-P analysis planning future sales using the information below.
Give us your instructions.
Select the type of service you need: writing, calculations, or programming. We’ve created an intuitive order form that tells you what information to enter and where, so make sure to fill out each required field. Also, make your requirements as specific as possible. Don’t rush! Take your time and explain everything in detail how it works.
Proceed to checkout and enter your credit card details or PayPal login, how to pay. Follow the payment provider’s instructions to confirm the transaction.
Now your order is in our system! We’ll start processing it right away.
Need help with a similar question?
Place an order and we will get it done
How It Works
Fast, Secure, and Confidential!
Fill in the Order Form
Submit your instructions through our small order form online
Make a payment
The price is based on these factors: Academic level, Number of pages, Urgency, Type of paper needed
We choose the most suitable writer
We choose the most suitable writer.