Answered: 11 .Del Co. has fixed costs of P100,000…

11 .Del Co. has fixed costs of P100,000 and break-even sales of P800,000. What is the projected profit at P1,200,000 sales? a. P50,000 b. P150,000 c. P200,000 d. P400,000 e. None of these; answer is

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter16: Capital Structure Decisions

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

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: Ibra Company is considering the following alternatives: Alternative A Alternative B Revenues OMR…

A: The incremental analysis is one of the tools which is used in making a decision between two or more…

Q: ABC Company breaks even at P300,000sales and earns P30,000 at P350,000 sales. Which of the following…

A: At break even sales, profit = 0 Increase in Profit = Increase in Sales - Increase in variable costs…

Q: What is the amount of product that the firm with a unit selling price of 10 TL, a variable cost per…

A: Selling Price per unit = 10 Variable Cost per unit = 8 Total Fixed Cost = 10,000 Quantity Sold For…

Q: NUBD has fixed costs of P160,000. At a sales volume of P400,000, return on sales is 10%; at P500,000…

A: Solution: Net income at Sales volume of P400,000 = P400,000 * 10% = P40,000 Net income at Sales…

Q: How many units must the company sell to earn a target profit of P50,000?

A: Profit: This is the financial gain that a company earns with the difference between what the…

Q: 10. Product Cott has sales of P200,000, a contribution margin of 20%, and a margin of safety of…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: 12. Ginger Corp. sells a product for P5 per unit. The fixed expenses are P210,000 and the unit…

A: Sale price = P 5 Variable cost ratio = 60% Variable cost per unit = 5*0.60 = P 3 Fixed cost = P…

Q: NUBD wishes to market a new product for P1.50 per unit. Fixed costs to manufacture this product are…

A: Cost-volume-profit (CVP) analysis is an important and systematic method that provides useful…

Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…

A: Hi student Since there are multiple question, we will answer only first question.

Q: Assume a sales price per unit of $25, variable cost per unit $21, and total fixed costs of $154560.…

A: Contribution margin per unit = Selling price - Variable cost Contribution margin ratio =…

Q: Ibra Company is considering the following alternatives: Alternative A Alternative B Revenues OMR…

A: The profit is calculated as difference between total revenue and cost.

Q: annually , at a price of ( 65 S / unit ) . The company wanted to explore the possibility of…

A: in order to find out the require profit the formula that is used is fixed cost is added by profit…

Q: Mazoon Company's variable costs are 65% of the selling price and its fixed costs are $80,000. To…

A: As the questions asked have more than 1 question, the first question is answered. If you want the…

Q: 10. Perla Company has projected cost of goods sold of P4,000,000 including fixed cost of P800,000.…

A: Contribution means the difference between the selling price and variable cost . Fixed cost when…

Q: Zeal Corporation is thinking about the dropping of its product Z.Sales of the product total…

A: Formula: Net profit = Revenues - expenses Deduction of expenses from revenues derives the net…

Q: 49) Selling price is $60/unit, VC are $45/unit, fixed costs are $300,000, what is your breakeven…

A: Formula: Contribution margin = Selling price - variable cost Deduction of variable cost from selling…

Q: Mazoon Company's variable costs are 75% of the selling price and its fixed costs are $80,000. To…

A: As per CVP equation, Contribution margin ratio = 1 - variable cost ratio Fixed costs + Profits =…

Q: Assume a company produces one product that sells for P55, has variable cost per unit of P35, and has…

A: In order to get and earn the target profit which the company has set must sell the required number…

Q: 10. Product Cott has sales of P200,000, a contribution margin of 20%, and a margin of safety of…

A: Given Information: Total Sales = P200,000 Contribution margin = 20% Margin of safety = P80,000

Q: The Canon Corp. plans to market a new product. Based on its market studies, Canon Corp. estimates…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: A company's fixed operating costs are $740,000, its variable costs are $2.25 per unit, and the…

A: Paticulars Amount Sales price per unit 4.65 Less Variable Expenses per unit…

Q: 4. Suppose ABC Co. produces 4,000 sweets per year. Its average total cost is OMR 80, and its fixed…

A: The following calculations are done in the records of ABC Company to calculate variable costs.

Q: costs of P120,000. At a sales volume of P400,000, return on sales is 10%; at a P600,000 volume,…

A: Breakeven sales volume is the amount of your product that must be manufactured and sold in order to…

Q: 43) Determine the break-even point of sales if: Sales is $100,000, Variable cost is $ 50,000 and…

A: From the given information, Contribution margin percentage = Sales-Variable…

Q: Q1: A company sells 280,000 units annually, at a price of (65 $/unit). The company wanted to explore…

A: The units are determined by the company and by selling those number of units in a year the company…

Q: a. P150,000 b. P500,000 t. P350,000 d. None of these . Given the following data: selling price, P60;…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: If a firm's margin of safety is 35% on sales of P200,000, then its margin of safety on sales of…

A: The Numerical has covered the concept of Margin Of Safty. The margin of Safty is that the difference…

Q: Darigold, Inc., sells Product M for P5 per unit. The fixed cost is P210,000 and the variable cost is…

A: Break even sakes (in "P") = Fixed cost/contribution Margin ratio = P210, 000/(100-60) % = P210,…

Q: The Vetron Company is planning to produce two products, Tig and Lam. Vetron is planning to sell…

A: Solution: - Calculation of Break-even point of "Tig" as follows under(In pesos):-

Q: UOHPMB251 Corp. has a 20% margin of safety percentage based on its actual sales. The break-even…

A: BEP SALES : = $748,000 VARIABLE EXPENSES : = 40% CM RATIO : = 60%

Q: 12. If fixed costs are $2,125,000 $850,000 and variable costs are 60% of sales, the break- even…

A: Formula: Break-even Sales = Fixed Cost / Contribution Margin Ratio Contribution Margin Ratio =…

Q: UOHPMB251 Corp. has a 20% margin of safety percentage based on its actual sales. The break-even…

A: Total sales are determined by adding the break-even point and the margin of safety sales. The sum of…

Q: . Ginger Corp. sells a product for P5 per unit. The fixed expenses are P210,000 and the unit…

A: Fixed expenses (F) = P 210,000 Variable expenses (V) = 60% Sales = X Profit =10% of X = 0.10X

Q: 13. The Basheer Corporation has a breakeven point when sales are 100,000 units and Rs.320,000, and…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Galactica Company has fixed costs of P100,000 and breakeven sales of P800,000. Based on this…

A: Formula: Break even sales = ( Fixed cost / Contribution margin ) x 100

Q: A company's fixed operating costs are $360,000, its variable costs are $2.95 per unit, and the…

A: Given: Fixed cost = $360,000 Selling Price per unit = $5.10 Variable Cost per unit = $2.95

Q: Mazoon Company's variable costs are 70% of the selling price and its fixed costs are $80,000. To…

A: CVP analysis: This analysis helps to evaluate how the changes made in cost and volume do affect the…

Q: 1. The current sales price is R35 per unit, the variable cost is R23 per unit and the fixed cost…

A: Contribution means the difference between the selling price and variable cost . Fixed cost remain…

Q: 18. The Disney Company's breakeven sales is P400,000 at a certain level of fixed costs. When such…

A: Lets understand the basics. Break even point is a point at which no profit no loss condition arise.…

Q: For items 22 to 24: The Warner Company sells its only pro the variable costs amount to P21 per unit.…

A: Break even point means the situation where there is no profit no loss. It means that a point where…

Q: Mazoon Company's variable costs are 80% of the selling price and its fixed costs are $80,000. To…

A: Cost Volume Profit analysis is used to calculate the break even point of sales. This formula is also…

Q: ABC Company has fixed costs of P1,000,000O, Break-even sales of P 5,000,000 and contribution margin…

A: Break even sales = Fixed costs / contribution margin ratio P5000000 = Fixed costs / 20% Fixed costs…

Q: Drape Corp. would like to market a new product at a selling price of P15 per unit. Fixed costs for…

A: Contribution margin per unit = P15 x 35% = P5.25

Q: BA205 - CASE#4 - Break-even Analysis A - Versa, Inc. sells a product for $100 per unit. The variable…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Ibra Company is considering the following alternatives: Alternative A Alternative B Revenues OMR…

A: Profit means the difference between the selling price and cost price.

Question

11 .Del Co. has fixed costs of P100,000 and break-even sales of P800,000. What is the projected
profit at P1,200,000 sales?
a. P50,000
b. P150,000
c. P200,000
d. P400,000
e. None of these;
answer is

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

9. Given a selling price of P120; CM at 25% and fixed costs at P250,000, variable costs at break-even will be: a.) P350,000 b.) P750,000 c.) P450,000 d.) P250,000
13. Kyle Inc. is planning to sell 197,500 units of Product K. The fixed costs are P1,200,000 and the variable costs are 60% of the selling price. What is the selling price per unit if the Company expects to earn a profit of P380,000 on its planned sales? 14. The Colits Corp. sells products for P200 each. Variable costs are P150 per unit. Fixed Costs are P800,000. How much sales (in pesos) must be reached to realize a net income of 15% of sales?
A company's breakeven sales (BES) is P 600,000. If fixed costs would increase by 10% of this BES, such BES would increase by 40%. a. What is the company's variable cost ratio b. How much is fixed costs of the new BES level?
National Co. has revenue of P500,000, variable costs of P300,000 and pretax profit of P150,000. If the company increases the sales price units by 10%, reduces fixed costs by 20%, and leaves variable cost per unit unchanged, what would be the new break-even point in pesos? P88,000 P80,000 P100,000 P125,000
. If a firm's margin of safety is 35% on sales of P200,000, then its margin of safety on sales of P300,000 will be (assume fixed costs, the variable cost per unit, and the sales price per unit do not change): a.P105,000 b.P170,000 c.P100,000 d.P 35,000
National Co. has fixed costs of P120,000. At a sales volume of P400,000, return on sales is 10%; at a P600,000 volume, return on sales is 20%. What is the break-even volume?
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?
1. The current sales price is R35 per unit, the variable cost is R23 per unit and the fixed cost amount is R50 000. If the price increased by R3 and all other cost remain in unchanged, the break-even point will do? 2. The fixed cost of Big and San limited were R45000, it's variable cost were R80000, and it's sales were R140000 with the units of 10000. what is the company's break-even point in Rands? 3. The firm's fixed cost is R140000 and they sold 500 units at R120 each. The total variables costs amount to R25000. Calculate the income or loss of the firm.
9 What is the amount of product that the firm with a unit selling price of 10 TL, a variable cost per unit of 8 TL and a total fixed cost of 10.000 TL must sell in order to reach the breakeven point? a) 4000 B) 5000 NS) one thousand D) 3000 TO) 2000
Sheridan Company has fixed costs of $2300000 and variable costs are 20% of sales. What are the required sales if Sheridan desires net income of $400000? $11500000 $13500000 $3375000 $2875000
NUBD has fixed costs of P160,000. At a sales volume of P400,000, return on sales is 10%; at a P500,000 volume, return on sales is 18%. What is the break-even volume?
The selling price of a particular product is $37.00 per unit, fixed costs total $225,600, and the breakeven sales in dollars is $940,000, what will the variable expense per unit be? Question 4 options: $117.17 $28.12 $8.88 $45.88