patterns remain unchanged, by how much will the company's netoperating income increase? Use the CM ratio to determine you3. Assume that sales increase by P400,000 next year If cost behavipeso. Use the equation method.answer.4. Refer to the original data. Assume that next year management wansthe company to earn a minimum profit of P90,000. How many unwill have to be sold to meet this target profit? Eercise 1 CVP Relationshipshigh electromagnetic radiation environments.Kelter Company manufactures and sells a specialized cordless telephonecontribution format income statement for the most recent year is grvenL ExurcisesCVP RelationshipsThe companysurhelowTotalPer Unit % of SalesSales (20,000 units)Less: Variable expensesContribution marginLess Fixed expensesP1,200,000 P60100%900,000 45P 300,000 15240,000Net operating incomeP 60,000Management is anxious to improve the company's profit performance andhas asked for an analysis of a number of items.

Solution:- 2)Computation of Break-even point in units and sales as follows under:-

Answered: 3. Assume that sales increase by…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(e) Product Blue Product Red £ £Selling £12.00 £24.00Variable cost £ 4.00 £ 8.00Contribution margin £ 8.00 £16.00Fixed costs apportioned £200,000 £400,000Budgeted Sales Units 140,000 60,000Required:Calculate the breakeven points, for each product and the company as a wholeand comment on your findings
Q1) The required engine to be product with high qulaity to be part of oilfied balatform. The production of (x engines) within the following costs details: |ExedCosts | | Variable Costs | Rents 105,000.0 Direct Insurance 9,600.0 materials 28 General Salaries 64,400.0 Labors 11 Maintenance 21,0000 Overtimes 9.9 Food costs 0.1 Revenue from selling prices per unit (59). product of (X Engine) 52 | 118 138 144 190 193 200 207 290 327 347 Required: A) Find all lines of Break Even . how the produaction reach to B.E.P. B) Plotting all details. C) If you suppose to use F.C to be 150,000 inseatd of the previous total fixed cost. Make the comparison between two obatining results (only ) on Break.Even.Points. Give your opinon on both figuers. Q2) The two projects as part of oil industrial their cash flows in tables belwo: project A:r=8% project B: r=8% year cash flow (CF) cash flow (CF) 0 -398 -242 1 120 105 2 175 105 3 280 115 Required: a) Find NPV for both project on base of r = 8%? b) Find the…
An engineer collected average cost and revenue data for Arenson’s FC1 handheld financial calculator.Fixed cost = $ 300,000 per yearCost per unit = $40Revenue per unit = $70 Show the sensitivity of profit to variation in revenue from $55 to $75 per unit using a $5 increment. Perform this analysis at two sales quantities: (1) the breakeven quantity for the collected data, and (2) 20% greater than this breakeven quantity. (Note: Be sure to use the original estimates for FC and cost per unit.)
Q5b) Contribution statement for Chiyeyeye furniture manufacturing LtdProduct A(ZMW) Product B(ZMW)Sales 1000 500Variable costs 600 300Contribution 400 200Fixed costs 200 200Profit 100 -Calculatei) Break-even point for each productii) Contribution ratio for each productiii) Can you close product B and why? Explain
Question Q1Moona Inc. produces Mobile phones. Information of the company's operations last year appear below: Fixed cost:Fixed Manufacturing overhead Rs 40,000Fixed Selling & Administrative Rs 60,000Selling Price per unit Rs 100Variable cost per unit:Direct Materials Rs 30Direct labor Rs 10Variable Manufacturing overhead Rs 5Variable Selling & Administrative Rs 2Units In beginning Inventory 0Units Produced 2000Units Sold 1900 Required: a. Compute the unit product cost under both absorption and variable costing.b. Prepare an income statement for the year using absorption costing.c. Prepare a contribution format income statement for the year using variable costing. d. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.
SOLVE THE GIVEN MCQS: 1) Pungent Corporation manufactures and sells a spice rack. Shown below are the actual operating results for the first two years of operations: Year 1 Year 2 Units (spice racks) produced 40,000 40,000 Units (spice racks) sold 37,000 41,000 Absorption costing net operating income $ 44,000 $ 52,000 Variable costing net operating income $ 38,000 ??? Pungent's selling price and unit variable cost and total fixed cost were the same for both years. What is Pungent's variable costing net operating income for Year 2? A $50,000 B $48,000 C $56,000 D $54,000 2) A company produces a single product. Variable production costs are $21 per unit and variable selling and administrative expenses are $4 per unit. Fixed manufacturing overhead totals $30,000 and fixed selling and administration expenses total $36,000. Assuming a beginning inventory of zero, production of 6,000 units and sales of 5,600 units, the dollar value of…
Choose the correct letter of answer Bautista Company produces and sells a particular home appliance. The variable cost (VC) per unit is P50. The unit selling price (SP) is P120 while fixed cost (FC) is P70,000. What is the revenue function in this case? a. C = 50x + 70,000b. P = 120x – 50x – 70,000c. R = 120x d. none of the above
Consider the following cost and pricing data of ABC Corp. on its Product X:Price: P120.00.per unitProfit Contribution: P90.00Proposed additional Cost: P3 per unit (for quality improvement)Current Profits: P2.4 millionSales: 100,000 units. A. Assuming that average variable costs are constant at all output levels, findABC Corp.’s total cost function before the proposed change.B. Calculate the total cost function if the quality improvement is implemented. UNANSWERED SUB-PARTSC. Calculate ABC Corp.’s break-even output before and after the change, assuming it cannot increase its price.D. Calculate the increase in sales that would be necessary with the quality improvement to increase profits to P2.7 million
Company XYZ produces and sells headphones. The company has total fired costs of $112,000. Each headphone sells for $70 per unit and has variable costs of $50 per unit. Next year XY7 Company wishes to eam an operating income that equals 20% of fixed costs. How many units must be sold to achieve this target income level? (rounded to the nearest numben) Select one: O a 1,120 O b. 5,600 Oc 933 O d. 6,720 O e 4480
Q1Moona Inc. produces Mobile phones. Information of the company's operations last year appear below: Fixed cost: Fixed Manufacturing overhead Rs 40,000Fixed Selling & Administrative Rs 60,000Selling Price per unit Rs 100Variable cost per unit: Direct Materials Rs 30 Direct labor Rs 10Variable Manufacturing overhead Rs 5Variable Selling & Administrative Rs 2Units In beginning Inventory 0 Units Produced 2000Units Sold 1900 Required: a. Compute the unit product cost under both absorption and variable costing.b. Prepare an income statement for the year using absorption costing.c. Prepare a contribution format income statement for the year using variable costing. d. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.
Staley Co. manufactures electronic equipment. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 520 100.00 Variable costs 332 63.85 Unit contribution margin $ 187 35.96 Assume that Staley Co. is currently selling 640 products per month and monthly fixed costs are $80,400.Staley Co.'s operating income (πB) is calculated to be: Multiple Choice $38,280. $40,280. $43,280. $42,280. $39,280.
Don't use chatgpt, I will 5 upvotes question 5 For the current year, Electric Corporation expected to sell 42,300 industrial power cords. Fixed costs were expected to total $1,651,500; unit sales price was expected to be $3,900; and unit variable costs were budgeted at $2,400. Electric Corporation's margin of safety (MOS) in sales dollars is: (Do not round intermediate calculations.) A. $160,676,100. B. $194,851,099. C. $166,596,097. D. $178,401,100. E. $150,226,100. A B C D E

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