Financial Overview and Break-Even Analysis of Bremend Ltd.Bremend Ltd is a maker of computer stands with unique financial characteristics that affect its profitability. The company’s fixed costs are $500,000, regardless of production amount. Each computer stand sells for $120, with a variable cost of $70 per unit. This yields a contribution margin of $50 per unit, computed by deducting the variable cost from the selling price ($120 – $70 = $50).The factory’s maximum production capacity is 20,000 units. To calculate the break-even threshold, where total revenues equal total costs, split fixed costs by contribution margin per unit.\[\text{break-even point (units)} = \frac{\text{fixed costs}}{\text{contribution margin per unit}} \]\[\text{Break-Even Point} = \frac{\$500,000}{\$50} = 10,000 \text{ units} \].Therefore, Bremend Ltd needsSell 10,000 units to cover all fixed and variable expenditures. At the break-even point, selling 10,000 units generates $1,200,000 in revenue ($120 per unit) and $700,000 in variable costs ($70 per unit).Beyond the break-even threshold, each extra unit sold increases profit. Bremend Ltd expects to earn $1,800,000 in revenue (15,000 units x $120 per unit) and $1,050,000 in variable costs (15,000 units x $70 per unit). After subtracting the fixed expenses from the overall contribution margin (revenue minus variable costs), the greatest profit possible is:Profit = \text{Total Contribution Margin} minus \text{Fixed Costs} \][\text{max profit} = \$750,000 – \$500,000 = \$250,000 \]This research shows that Bremend Ltd can make a maximum profit of $250,000 if it sells 15,000 units as planned.\[\text{Total Contribution Margin} = (\text{Selling Price} – \text{Variable Cost}) �times \text{Units Sold} \]\[\text{Total Contribution Margin} = \$50 * 15,000 = \$750,000 \]\[\text{Maximum
Analyze the following transactions using the T account approach. Place the dollar amounts on the debit and credit sides. Indicate next to each entry the
Analyze the following transactions using the T account approach. Place the dollar amounts on the debit and credit sides. Indicate next to each entry the number for that transaction. After all transactions have been recorded, foot the accounts where necessary and enter the balance in the proper place for each