Kent Company manufactures a product that sells for $120.00. Fixed costs are $179,400 and variable costs are $36.00 per unit. Kent can buy a new production machine that will increase fixed costs by $12,480 per year, but will decrease variable costs by $9.60 per unit. Compute the revised break even point in dollars with the purchase of the new machine.
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- Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.10. The machine will increase fixed costs by $11,750 per year. The information they will use to consider these changes is shown here. A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round per unit cost answers to two decimal places. Current New Machine Units Sold 211,000 fill in the blank 1 Sales Price Per Unit $2.10 $fill in the blank 2 Variable Cost Per Unit $1.75 $fill in the blank 3 Contribution Margin Per Unit $0.35 $fill in the blank 4 Fixed Costs $49,000 $fill in the blank 5 Break-Even (in units) 140,000 fill in the blank 6 Break-Even (in dollars) $294,000 $fill in the blank 7 B. What will the impact be on net operating income if Flanders purchases the new machinery? Current New Machine Sales $443,100 $fill in the blank 8 Variable Costs 369,250 fill in the blank 9 Contribution Margin…Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.10. The machine will increase fixed costs by $12,000 per year. The information they will use to consider these changes is shown here. A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round per unit cost answers to two decimal places. Current New Machine Units Sold 221,000 Sales Price Per Unit $2.10 Variable Cost Per Unit $1.70 Contribution Margin Per Unit $0.40 %24 Fixed Costs $60,000 Break-Even (in units) 150,000 Break-Even (in dollars) $315,000 B. What will the impact be on net operating income if Flanders purchases the new machinery? Current New Machine Sales $464,100 Variable Costs 375,700 Contribution Margin $88,400 Fixed Costs 60,000 Net Income (Loss) $28,400 C. What would your recommendation be to Flanders regarding this purchase? a. The new equipment will increase fixed costs substantially but net income will still…Kent Company manufactures a product that sells for $100.00. Fixed costs are $151,800 and variable costs are $40.00 per unit. Kent can buy a new production machine that will increase fixed costs by $9,900 per year, but will decrease variable costs by $6.00 per unit. Compute the revised break - even point in dollars with the purchase of the new machine. Multiple Choice $253,000. $230,000. $269,500. $202,400. $245,000.
- Jackson amp; Sons uses packing machines to prepare its products for shipping. One machine costs $178,000 and lasts about 5 years before it needs replaced. The operating cost per machine is $16,000 a year. What is the equivalent annual cost of one machine if the required rate of return is 12 percent? Select one: O O O O O a. $81,006.15 b. $65,378.93 c. $54,224.08 d. $79,004.12 e. $38,556.67Anderson Inc. uses packing machines to prepare their product for shipping. One machine costs $136,000 and lasts about 5 years before it needs to be replaced. The operating cost per machine is $6,500 a year. Ignoring taxes, what is the equivalent annual cost of one packing machine if the required rate of return is 11%? Multiple Choice $49,904 $51,036 $44,298 $43,298 $50,776Kent Company manufactures a product that sells for $53.00 and has variable costs of $28.00 per unit. Fixed costs are $260,000. Kent can buy a new production machine that will increase fixed costs by $13,600 per year, but will decrease variable costs by $3.80 per unit. Compute the revised break-even point in units if the new machine is purchased.
- ABC company sells its products for $16 per item. The fixed cost of the company are 240000 per year and the variable cost per item is $8. The management has been offered an opportunity to move into a smaller facility, which would lower the fixed cost to 200000 however, the variable cost per item would actually increase to $9 at this new facility management had come to your advice. Please calculate the brake even units required for both of the above scenarios. Give these 2 numbers to management. Then give your recommendations to the management team. As to whether they should move to the new facility or not.Kent Co. manufactures a product that sells for $50.00 and has variable costs of $24.00 per unit. Fixed costs are $260,000. Kent can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. Compute the contribution margin per unit if the machine is purchased.Kent Company manufactures a product that sells for $54.00. Fixed costs are $341,000 and variable costs are $23.00 per unit. Kent can buy a new production machine that will increase fixed costs by $14,200 per year, but will decrease variable costs by $6.00 per unit. What effect would the purchase of the new machine have on Kent's break-even point in units?
- It costs Bonita Industries $28 of variable costs and $13 of allocated fixed costs to produce an industrial trash can that sells for $64. A buyer in Mexico offers to purchase 5000 units at $31 each. Bonita Industries has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income? Select answer from the options below 1. Increase $155000 2. Increase $50000 3. Decrease $50000 4. Increase $15000A new project will allow you to sell a new product at $61 each. Variable costs are $24 each and fixed costs would run $75,000 per year. If there is no initial investment required, how many units would you have to sell annually to break-even (aka the "accounting break-even quantity")? (Round up to the next whole number of units.) O a. 1800 O b. 2147 O c. 2287 O d. 1778 Oe. 2028Breakeven In Revenue Modern Lighting is looking at carrying a new line of lamps. Modern Lighting will BUY these lamps for $9.39 each, with ADDITIONAL variable costs of $2.07 per unit. The company expects to sell the lamps for a price of $19.67. Setting up to sell the new line will involve fixed costs of $33,491. Calculate breakeven in DOLLARS of sales revenue for Modern Lighting. (Rounding: Penny / 2nd decimal place)