500 units in sales are required to earn a target profit of $45,000 if fixed costs are $1200, variable costs are $96, and selling price is $276. True or False?
Q: if a product total fixed cost is 50,000 and its variable cost is 28500 for 9500 units what should be…
A: Variable costs per unit = Total variable cost / no. of units = 28500/9500 = 3 per unit
Q: Cullumber Company's break-even point in sales dollars is $650,000. Assuming fixed costs are…
A: Sales revenue needed to earn target net income = (Fixed costs + target net income) / Contribution…
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…
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A: Cost accounting is one of the branch of accounting. Under this branch, all type of costs of the…
Q: A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are…
A: Break-even point: It can be defined as that level of production at which the total costs incurred by…
Q: Lin Corporation has a single product whose selling price is $120 and whose variable expense is $80…
A:
Q: A company sells 4100 units of a product at 15 JOD per unit, which costs the company JOD 12 to…
A: Markup: The markup is the difference between the selling price of a product or service and the cost…
Q: Given the cost per king-size sheet set above and assuming the manufacturer has total fixed costs of…
A: Given: Fixed cost = $500,000 Unit sales = 50,000
Q: If fixed costs are $295,000, the unit selling price is $72, and the unit variable costs are $54, the…
A: Break-even sales is the dollar amount of revenue at which a business earns a profit of zero i.e. No…
Q: FRT Company sells each unit for $ 60, variable costs for each unit $ 25, Fixed costs $ 200000 Wants…
A: Contribution means the difference between the selling price and variable cost . Fixed cost remain…
Q: An organization's break-even point is 4,000 units at a sales price of P50 per unit, variable cost of…
A: Given: Selling price = P50 Variable cost = P30 Additional units sold = 500 Fixed cost = P80,000
Q: nd all other costs remain unchanged, the break-even point in units will:
A: The current contribution margin per unit is $25 - $17 = $8. The current break-even point in units is…
Q: Kareem Co. produces a single product that is sold for $85 per unit. If the variable costs per unit…
A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…
Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…
A: Units produced and sold = 40,000 Contribution margin = $320,000 Fixed cost = $80,000 Increase in net…
Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: Barometers sell for $300 each. Variable costs are $200 per unit, fixed production costs are $2,000,…
A: Profit is the excess of revenue over cost. Profit can be found out by deducting cost price from…
Q: 123 INC. is planning to market 300,000 units of Product X. The fixed costs are P600,000 and the…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
Q: For XYZ Company, how many units of their product would have to be sold to yield a target operating…
A: In order to arrive at the sales required to be made for earning desired/ targeted amount of income,…
Q: Salter Inc.'s unit selling price is $50, the unit variable costs are $35, fixed costs are $125,000,…
A: Calculate the contribution margin per unit as follows: Contribution margin = Selling price -…
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: Campbell Company has fixed costs of $200,000, sales price of $50, and variable cost of $30 per unit.…
A: To earn a target profit of $50,000, Campbell must earn a contribution margin of $250,000…
Q: how many units must Tony sell to breakeven?
A: Breakeven sales is the sales at which there is no profit or no loss. Breakeven point = Fixed cost/…
Q: A company needs to sell 10,000 units of its only product in order to break even. Fixed costs are…
A: Margin of Safety: The break-even point reflects the level of sales volume where no profit or loss is…
Q: sales price of $250 is required to earn a target profit of $45,000 if fixed costs are $1200,…
A: Profit can be calculated by deductions of fixed cost and variable cost from sales.
Q: If fixed costs are $ 500,000, the unit selling price is $55, and the unit variable costs are $30,…
A: Break-even Point: It refers to a point in the level of operations at which a company experiences…
Q: Virgil Corp. has a selling price of $30 per unit, and variable costs of $20 per unit. When 12,000…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: A company makes a product with a selling price of $20 per unit and variable costs of $12 12 per…
A: Calculate contribution margin per unit:
Q: A firm has fixed operating costs of $100,000 and variable costs of$4 per unit. If it sells the…
A: The formula to compute break-even quantity:
Q: If the unit sales price is $22 and variable costs are $14, how many units have to be söld to earn a…
A: The number of units to be sold is the target volume to achieve a target profit. Target profit =…
Q: ABC company sells shoses for $450. The variable cost is $200 per unit. The fixed costs are $750000.…
A: Please find the answers to the above questions below:
Q: A company needs to sell 10,000 units of its only product in order to break even. Fixed costs are…
A: The correct answer is Option (2).
Q: If fixed costs are $500,000, the unit selling price is $55, and the unit variable costs are $30, the…
A: Given information is: Unit selling price = $55 per unit Unit variable costs = $30 per unit Fixed…
Q: Currently, the unit selling price of a product is $350, the unit variable cost is $290, and the…
A: Step 1: Compute the contribution margin per unit: Contribution margin per unit=Selling…
Q: If fixed costs are $500,000, the unit selling price is $35, and the unit variable costs are $20,…
A: Break-Even Point: Units required to break-even = Fixed Costs / (Revenue per Unit – Variable Cost…
Q: For XYZ Company, how many units of their product would have to be sold to yield a target operating…
A: Formula Contribution per unit = Sale price per unit - Variable cost per unit Units sold at Target…
Q: Penny Corporation desires to earn target net income of $15,000. If the selling price per unit is…
A: NUMBER OF UNITS TO EARN TARGET INCOME : = (TOTAL FIXED EXPENSES + TARGET INCOME) / CONTRIBUTION PER…
Q: A company currently sells 400 units at a sales price of $300. Its contribution margin is 40%, and…
A: The calculation of Margin of safety is shown hereunder : Actual sales = $ 120,000 ( 400 units × $…
Q: For the current year ending October 31, Papadakis Company expects fixed costs of $530,200, a unit…
A: In this numerical has covered the concept of Cost volume Profit Analysis . Break even point is point…
Q: Currently, the unit selling price of a product is $200, the unit variable cost is $160, and the…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: Sales volumes are expected to be either 20,000 units with 60% probability or they are expected to be…
A: We have the following information: Sales volumes are expected to be either 20,000 units with 60%…
Q: If the selling price per unit is $80, the variable expense per unit is $40, and total fixed expenses…
A: Formula: Break even sales dollars = Break even units x Sales price per unit
Q: If fixed costs are $1,226,000, the unit selling price is $220, and the unit variable costs are $100,…
A:
Q: Versa Inc. sells a product for $100 per unit. The variable cost is $75 per unit, and fixed costs are…
A: (a) Break-even point in sales units = Fixed costsSales price per unit-Variable cost per units…
Q: Rhine Inc. make a single product with a selling price of £35 per unit. Fixed costs are £40,000 and…
A: Units that must be sold to achieve target profit means units at which business is recovering its…
Q: Atlantic Company sells a product with a break-even point of 3,000 sales units. The variable cost is…
A: At break even point, Contribution margin = 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: Determine the margin of safety in dollars. e. If the company wants to have net income of $70,000,…
A: The margin of safety: The margin of safety of a company measures how much more it produces than it’s…
Q: At the break-even point of 2,000 units, variable costs are P55,000, and fixed costs are P32,000. How…
A: The calculation of selling price per unit is shown hereunder : Break even units 2,000 Variable…
Q: n organization's break-even point is 4,000 units at a sales price of $50 per unit, variable cost of…
A: Step 1 Break even point is the production level at which total revenues for a product equal total…
500 units in sales are required to earn a target profit of $45,000 if fixed costs are $1200, variable costs are $96, and selling price is $276.
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- Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
- Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
- Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)
- Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and their product has a per-unit contribution margin of $250, how many units must they sell to reach their target income? A.20 B. 40 C. 60 D. 120Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?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.
