(Answered) Thomlinson company is considering the development of two

Accounting

Thomlinson Company is considering the development of two products: no. 765 or no. 766. Manufacturing cost information follows.

	No. 765	NO. 766
Annual Fixed Costs	$250,000	$350,000
Variable cost per unit	$35	$25

Regardless of which product is introduced, the anticipated selling price will be $60 and the company will pay a 10% sales commission on gross dollar sales. Thomlinson will not carry an inventory of these items.

A. What is the break-even sales volume (in dollars) on product no. 766?

B. Which of the two products will be more profitable at a sales level of 20,000 units?

C. At what unit-volume level will the profit/loss on product no. 765 equal the profit/loss on product no. 766?

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91521816
Price:- $15

Verified Expert

Priced at $30 Now at $15, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Questions answer the following questions all the questions

Questions: Answer the following questions. All the questions below are based on it. You are NOT allowed to cite information from other sources!!! It is based on Australian accounting system so do not rely too much on you ...

Question - cullumber company purchased machinery for 176400

Question - Cullumber Company purchased machinery for $176,400 on January 1, 2017. It is estimated that the machinery will have a useful life of 20 years, salvage value of $14,700, production of 88,600 units, and working ...

Question - bates company issued 1000000 10-year bonds and

Question - Bates Company issued $1,000,000, 10-year bonds and agreed to make annual sinking fund deposits of $78,000. The deposits are made at the end of each year into an account paying 6% annual interest. What amount w ...

Question - on december 31 2017 sage company signed a

Question - On December 31, 2017, Sage Company signed a $1,023,100 note to Pronghorn Bank. The market interest rate at that time was 11%. The stated interest rate on the note was 9%, payable annually. The note matures in ...

Question a firm has consistently adjusted its allowance

Question: A firm has consistently adjusted its allowance account at the end of the fiscal year by adding a fixed percent of the period's sales on account. After seven years, the balance in Allowance for Doubtful Accounts ...

Question - lucky treasures enterprises issued 9 8-year

Question - Lucky Treasures Enterprises issued 9%, 8-year, $2,000,000 par value bonds that pay interest semiannually on October 1 and April 1. The bonds are dated April 1, 2013 and are issued on that date. The discount ra ...

Question - calculate the break-even in dollars given the

Question - Calculate the break-even in dollars given the following information: Sales per unit of $40, variable costs of $15, fixed costs of $15,000, and a desired profit of $20,000. What is the break-even in dollars?

Question - xyz ltd has a balance day of 31 december on 1

Question - XYZ Ltd has a balance day of 31 December. On 1 January 2XX3, it had an opening inventory balance of $12,000. XYZ Ltd purchased $23,000 worth of goods for resale. On 31 December 2XX3, the closing inventory bala ...

Question - destin company signs a contract to manufacture a

Question - Destin Company signs a contract to manufacture a new 3D printer for $80,000. The contract includes installation which costs $4,000 and a maintenance agreement over the life of the printer at a cost of $10,000. ...

Question during the current year merchandise is sold for

Question: During the current year, merchandise is sold for $18,300 cash and $295,700 on account. The The cost that is reported as an expense when merchandise is sold.cost of the merchandise sold is $188,000. What is the ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert