Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 12 Aug 2017 My Price 9.00

Air Peanut Company

Breakeven point, what-if analysis Air Peanut Company manufactures and sells roasted peanut packets to commercial airlines. Following are the price and cost data per 100 packets of peanuts:

Required
(a) Determine Air Peanut’s breakeven point in units.
(b) How many packets does Air Peanut have to sell to earn $156,000?
(c) Air Peanut expects its direct labor costs to increase by 5% next year. How many units will it have to sell next year to break even if the selling price remains unchanged?
(d) If Air Peanut’s direct labor costs increase by 5%, what selling price per 100 packets must it charge to maintain the same contribution margin-to-salesratio?

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Aug 2017 11:08 PM My Price 9.00

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