4. A company produces school bags for children. The fixed cost is RM999,000 and the total cost of producing 30000 bags is RM1,500,000. The selling price of the product is RM99.00. Determine the break-even quantity.
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- Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.1. University Catering sells 50 pound bags of popcorn in the university dormitories for P10 abag. Fixed cost of this operation are P80,000 while variable costs of the popcorn are P.10per pound.a. What is the BEP in bags?b. Calculate the EBIT or loss on 12,000 bags and 25,000 bags.c. Calculate the EBIT or loss on 25,000 bags.The National Inc. will produce 5,000 boxes of chocolates next year. Variable costs is 60% of sales, while fixed costs will total P160,000 on which half is manufacturing fixed cost and the rest to financing cost. What is the per box of chocolate sales price if National Inc. wants to achieve a degree of operating leverage of 1.67 and an earnings before taxes equal to 50% of the amount of interest expense? a. 155 b. 200 c. 225 d. 100
- Yerke Company makes and sells jungle gyms and tree houses for children. For jungle gyms, the price is $120 and the variable expenses are $90 per unit. For tree houses, the price is $200 and the variable expenses are $100. Total fixed expenses are $253,750. Next year, Yerke expects to sell 12,000 gyms and 8,000 tree houses. What is the total sales revenue at the break-even point? a.$411,250 b.$140,000 c.$665,000 d.$253,700 e.$1,076,2504. If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the interest and store keeping charges are 20% of the value and the cost of placing of an order and receiving the goods is RO 60, how much material should be ordered at one time? 5. Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 units per month. The valve cost of RO 1.50 per unit when bought in large quantities, and the carrying cost is estimated to be 20% of average inventory investment on an annual basis. The cost to place an order and process the delivery is RO18. It takes 45 days to receive delivery from the date of an order and a safety stock of 3250 vales is desired. You are required to determine. a. The most economical order quantity and frequency of orders. b. The most economical order quantity if the valves cost is RO 4.50 each instead of RO 1.50 eachDona Corporation manufactures and sells T-shirts imprinted with college name and slogans. Last year, the shirts sold for P7.50 each, and the variable cost to manufacture them was P2.25 per unit. The company needed to sell 20,000 shirts to breakeven. The net income last year was P5,040. Dona’s expectation for the coming year include the following: • The sales price of the t-shirt will be P9.00 • Variable cost to manufacture will increase by one-third. • Fixed cost will increase by 10% • The income tax rate of 40% will be unchanged a. The selling price that would maintain the same contribution margin rate as last year is ______________- b. The number of T-shirts Dona must sell to break even in the coming year is ______________ c. If Dona wishes to earn P22,500 in net income for the coming year, the company’s sales in pesos must be __________
- Mix Electronics purchases 2,400,000 units per year of a component with a purchase price of P50. The fixed cost is P15 per order, and the carrying cost is 30% of the purchase price.a. Calculate the EOQ.b. Calculate the EOQ if the order cost is zero. c. Calculate the EOQ if the order cost is P10 per order.d. What is the implication to the firm if there is a decrease in the order cost?The Perez Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for P7.50 each, and the variable cost to manufacture them was P2.25 per unit. The company needed to sell 20,000 shirts to break even. The net income last year was P5,040. Harper's expectations for the coming year include the following: The sales price of the T-shirts will be P9 2.Variable cost to manufacture will increase by one-third 3.Fixed costs will increase by 10% 4.The income tax rate of 40% will be unchanged The selling price that would maintain the same contribution margin rate as last year isZaliea company produces hat with a variable cost of RM 5,000 for 500 pieces. Each unit was sold at RM 25 and the fixed cost is RM^(35),000. How much is the profit if 10,000 units are sold?
- A furniture manufacturer has an annual overhead cost of P100,000 plus 20% of the sales in pesos. Labor costs P20.00 per set and the materials cost P10.00. He has a maximum capacity of 1,000 sets per month, but expects to produce only 8,000 sets per year. If he could sell all what he expects to produce, how much is the selling price of each set just to break even?Yerke Company makes and sells jungle gyms and tree houses for children. For jungle gyms, the price is $120 and the variable expenses are $90 per unit. For tree houses, the price is $200 and the variable expenses are $100. Total fixed expenses are $253,750. Next year, Yerke expects to sell 12,000 gyms and 8,000 tree houses. What is the number of jungle gyms sold by Yerke at the break-even point? a.668 b.1,002 c.1,750 d.2,625 e.8757. HEA ltd sells 2,000 bags of cement each year. It is estimated that the cost of holding one bag of cement for a year is £4. The cost of placing an order for new inventories is estimated at £250. Based on the case scenario, what is the economic order quantity (EOQ)? A 354 bags B 500 bags C 8 bags D 1,000 bags