. The company sales $100,000, Variable cost $70,000, what is Profit Volume Ratio of the company? a. 30% b. 20% c. 25% d. none of the above
Q: 4. Dynamic Corp. had sales of P1,500,000, fixed costs of P400,00 and variable cost of P900,000.…
A: Break even sales is that point at which fixed cost is equal to the contribution margin and there is…
Q: A firm sells a single product for ₱80 per unit. The firm’s fixed expenses total ₱320,000 per year.…
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Q: A firm sells a single product for ₱100 per unit. The firm’s fixed expenses total ₱500,000 per year.…
A: Selling price (P) = ₱100 Fixed cost (F) = ₱500000 Variable cost (V) = ₱40 Commission (C) = ₱5…
Q: Company XYZ is currently making sales of $200,000. At this level, the variable expenses were…
A: Sales revenue: It is the revenue earned by an organization on selling the products to the outsiders.…
Q: Company XYZ is currently making sales of $200,000. At this level, the variable expenses were…
A: Formula: Contribution margin = Sales value - variable expenses. Deduction of Variable expenses from…
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A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
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Q: Suppose Morrison Corp.’s breakeven point is revenues of $1,100,000. Fixed costs are $660,000. Q1.…
A: 1. Compute the contribution margin percentage.
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A: To construct the company’s contribution approach income statement and determine the net income of…
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A: Hi student Since the question has multiple sub parts, we are answering only first three sub parts.
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A: Net profit of the business can be calculated by deducting variable costs and fixed costs from sales…
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A: The break even sales are the sales where business earns no profit no loss during the period.
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A: Contribution is usually defined as Sales minus the variable costs of an organization The degree of…
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A: The question is based on historical and inflation costing.
Q: Question 3: Oman Company's financial information is given in the table below. Sales (OMR) Fixed…
A:
Q: Company XYZ is currently making sales of $200,000. At this level, the variable expenses viere…
A: The profits are calculated as difference between sales and total costs.
Q: eck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $330,700…
A: Operating leverage measures that growth in operating income with the growth in revenue
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Q: 1. Meyer Appliance Company makes cooling fans. The firm's income statement is as follows: Sales…
A: Answer a)
Q: Q2. Suppose that Nafitol Company has a fixed cost of ETB 35,000 and VC of ETB 1.75 per unit for its…
A: Breakeven Point = Fixed CostsContribution Per Unit Desired Sales = Target Profit + Fixed…
Q: XYZ Company's single product has a selling price of $15 per unit. The fixed expenses were $110,000.…
A: Profit per unit is the selling price minus variable cost per unit as reduced by fixed expenses
Q: Q3. Brainteaser Company Ltd has existing sales of INR 1,400 lakhs. Its breakeven sales amount to 60%…
A: The Breakeven sales is that level of sales where the company does not incur any losses but also does…
Q: 1.) refer to the original data. Compute the company's margin of safety in both dollar and percentage…
A: Lets understand the meaning of margin of safety. Margin of safety is a sales over a break even…
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A: Formulas - sales - variable cost = contribution P/V ratio = (contribution / sales )* 100 BEP =…
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A: Formula: Net Income = Revenues - costs.
Q: 3. Assume that sales increase by P400,000 next year If cost behavis patterns remain unchanged, by…
A: Solution:- 2)Computation of Break-even point in units and sales as follows under:-
Q: 4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage…
A: Margin of safety refers the sales generated in excess of the break-even level. Contribution margin…
Q: XYZ Company's single product has a selling price of $15 per unit. The fixed expenses were $160,000.…
A: Degree of operating leverage refers to the change in percentage of operating income due to change in…
Q: XYZ Company's single product has a selling price of $15 per unit. The fixed expenses were $120,000.…
A: Let units sold be X Sales = 15X Contribution = Fixed expenses + Profit = $120,000 + $60,000…
Q1) B. Circle correct answer:
1. The company sales $100,000, Variable cost $70,000, what is Profit
Volume Ratio of the company?
a. 30%
b. 20%
c. 25%
d. none of the above
2. A company average annual income is $40,000 and Initial investment is $400,000. What is Accounting
a. 5%
b. 10%
c. 15%
d. none of the above
3. What is capital budgeting?
a. It is a short term planning
b. It is a long term planning
c. It is Long term planning for making and financial decisions.
d. none of the above
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- f net profit of the firm is OMR 280,000 and capital employed is OMR 1,400, 000 the return on capital employed will be 20%. During inflation with net profit calculated with replacement cost is OMR 180,000 and capital employed is OMR 22,00,000 the return on capital employed will be 8.2%. This situation expresses the following problem. a. Under historical cost accounting, the profits are overstated, and fixed assets are understated specially when there is increase in the price of the old fixed assets. b. Under historical cost accounting, return on capital employed which is very useful for the valuation of the business by its owners, creditors and management will not be correct and may lead to misleading decision c. Both the given statements are true in the given situation d. Both the given statements are false in the given situation4. Dynamic Corp. had sales of P1,500,000, fixed costs of P400,00 and variable cost of P900,000. What would be the amount of the sales pesos at breakeven point? a. P1,000,000 b. P1,200,000 c. P1,500,000 d. P1,800,000 5. Refer to question No. 4. How much should the sales be in order to produce a net income of P300,000? a. P2,500,000 b. P2,250,000 c. P2,000,000 d. P1,750,000Q2. Suppose that Nafitol Company has a fixed cost of ETB 35,000 and VC of ETB 1.75 per unit for its products. Let us further consider that selling price is birr 2.7 per unit. Required: A. Write the revenue and the cost equation of the company B. At what level of production output is the company Break-even? C. What is the amount of the revenue when the company produces 300,000 units? D. If the company plans to earn a profit of 7000, what amount of quantity has to be produced?
- Q5. Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $330,700 $1,056,000 Variable costs (132,700) (633,600) Contribution margin $198,000 $422,400 Fixed costs (132,000) (246,400) Operating income $66,000 $176,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. Bryant Inc. b. How much would operating income increase for each company if the sales of each increased by 20%? If required, round answers to nearest whole number. Dollars Percentage Beck Inc. $ % Bryant Inc. $ % c. The difference in the _________ of operating income is due to the difference in the operating leverages. Beck Inc.'s __________ operating leverage means that its fixed costs are a __________ percentage of contribution margin than are Bryant Inc.'s.2). annually. Company’s annual sales are OMR (4) million, its tax rate is 30%, and its rate on equity (ROE) is 20% and tota asset (TA)was OMR (1500) thousand. Omani Company sold .product at OMR 5.50 per unit; its variable operating costs are OMR (2.5) per unit -:Answer the following .Calculate the firm’s degree of Operating leverage a) .Calculate the firm’s degree of financial leverage b) ?What is the combine effect of fixed Operating and Financial Costs c)The Omani Company has OMR (800) thousand of total debt (Liabilities) outstanding (Liabilities), and it pays an interest of OMR (80) thousandGiven the following information, answer the following questions. TR = $4.5Q TC = $3,500 + $2Q a.) What is the break-even level of output? b.) If the firm sells 1300 units what are its earnings or losses? c.) If sales rise to 2,300 units, what are the firm's earnings or losses?
- 1. DRS Sdn. Bhd. earned operating income last year as shown in the following income statement: Sales = 580000 Cost of goods sold = 333000 Gross margin = 247000 Selling and administrative expense = 190000 Operating income = 57000 At the beginning of the year, the value of operating assets was RM177,000. At the end of the year, the value of operating assets was RM277,000. DRS Sdn. Bhd. requires a minimum rate of return of 10%. a) Calculate the return on investment (ROI). b) Calculate the residual income (RI).If the sales of business x are $ 150.000 , variable cost is $ 45.000 , fixed cost is $ 15.000 and EBIT is $ 30.000 , what is the operating leverage of this business ? a.5 b.4 c.3 d.4,5 e.3,5PLease show Solutions for a guide. 1. A firm total sales is 156,000 this year. If the cost of sales is 55% . What is the amount of gross profit? 2. If the firm above earned a profit of 39,000 . How many percent of total sales is the net profit? 3. Compute for the operating expenses of the firm 1 and 2. How many percent of the total sales are the operating expenses?
- Suppose Morrison Corp.’s breakeven point is revenues of $1,100,000. Fixed costs are $660,000. Q1. Compute the contribution margin percentage. Q2. Compute the selling price if variable costs are $16 per unit. Q3. Suppose 75,000 units are sold. Compute the margin of safety in units and dollars. Q4. What does this tell you about the risk of Morrison making a loss? What are the most likely reasons for this risk to increase?b. Assume that more than one product is being sold in each of the four following case situations:AverageContribution Net OperatingVariable Margin Fixed IncomeCase Sales Expenses Ratio Expenses (Loss)1 ........................ $500,000 ? 20% ? $7,0002 ........................ $400,000 $260,000 ? $100,000 ?3 ........................ ? ? 60% $130,000 $20,0004 ........................ $600,000 $420,000 ? ? $(5,000)1.) refer to the original data. Compute the company's margin of safety in both dollar and percentage terms ? 2.) what is the company's cm ratio? If he company can sell more units thereby increasing sales by $84000 per month and there is no change in fixed expense, by how much would you expect monthly net operating income to increase?