A company expects to sell 20,000 units of a product next year. Variable production cost is ₱15 and variable selling costs is 15% of the selling price. Fixed expenses are ₱250,000 per year. The firm set a target profit of ₱100,000 (ignoring tax). Based on the information, the unit selling price should be?

Q: Your corporation sells a product for $10 per unit. The variable expenses are $6 per unit, and the…

A: Break-even analysis is a technique used widely by the production management. It helps to determine…

Q: If National Co. has calculated that it needs to sell 20,000 units in order to earn an after-tax…

A: No. of units need to sell to earn desired profit = (Desired profit before tax + Fixed costs) /…

Q: Felt Ltd. is currently selling 2,000 units of a product per month at a price of €300 each. An…

A: The maximum profit under different scenario can be computed for reaching the management decisions…

Q: e books of V-cut Company shows that the business has a fixed cost of 20 million pesos annually. Its…

A: Break even quantity is at which all cost are covered.

Q: XYZ Company's single product has a selling price of $15 per unit. The fixed expenses were $120,000.…

A: Profit increases with the increase in sales revenue. Here, sales are increased by 10%, so profits…

Q: A variable cost of $7 per unit of product is equal to 70% of the selling price. The fixed cost for…

A: The Break-even point is that level of sales, where the total cost i.e variable and fixed both are…

Q: Last year Minden Company Introduced a new product and sold 25,100 units of It at a price of $95 per…

A: In Cost , The. variable . cost and fixed cost and incurred. this is eaten under marginal costing .…

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

A: The target sales can be calculated according to the concept of CVP analysis.

Q: Zira Ltd sells mobile gadgets for 15 each. The gadgets have a variable cost of 4 per unit, and…

A: Formula: Break even point in units = Fixed cost / Unit contribution margin

Q: A certain firm has the capacity to produce 650 000 units of a certain product per year. At present,…

A: Capactity - 6,50,000 units Operating capacity - 62% Annual Income PhP 41,95,000 Annual Fixed Costs -…

Q: On the average, a company has a work-in-process lead time of 10 weeks and annual cost of goods sold…

A: Work in process (WIP), work in advance (WIP), merchandise in preparation, or in-process stock are a…

Q: product sells for P60 per unit and has a CM ratio of 40%. The company's fixed expenses are P360,000…

A: The break-even point is the point at which there is neither profit nor loss. That means, how many…

Q: the firm must have a sales price per unit of at least *

A: Fixed cost will not change with the change in the number of units sold. Profit = Sales - Variable…

Q: The firm provided the following data for the year: Selling price per unit- ₱40; Variable production…

A: let us put the sales commission in variable cost contribution margin = 40 - 15 - 5 = 20 total fixed…

Q: Jely Company manufactures a single product. In the prior year, the company had sales of P90,000,…

A: Variable cost changes with the changing level of activities i.e. higher the production more will be…

Q: Jasin Company projected operating income ( based on sales of 450,000 units ) for the coming year as…

A: The break even sales are the sales where business earns no profit no loss during the period. Break…

Q: A furniture manufacturer has an annual overhead cost of P100,000 plus 20% of the sales in pesos.…

A: Let selling price be X. Sales will be 8000X. Variable cost per unit = Labor cost+Materials cost…

Q: A company manufactures and sells a single product whose selling price is P500 and whose variable…

A: Given that, Selling price = P500 Variable cost per unit = P300 Contribution per unit = Selling price…

Q: A company sells its product at P18 per unit. Variable costs are P12 per unit and fixed costs are…

A: Contribution margin = sales  - variable costs = 18-12 = P6 per unit Contribution margin ratio =…

Q: Firm M expects to earn $210,000 next year after taxes. Sales will be $4 million. This firm makes…

A: Given Information: Sales = $4,000,000 Profits after taxes = $210,000 Sales per unit = $200 Variable…

Q: Tito Company sells several products. Information of average revenue and costs are as follows:…

A: Break-even point is the level of sales at which the net operating profit is zero. In other words,…

Q: A company expects to sell 30,000 units of a product next year. Variable production cost is ₱25 and…

A: Number of units = 30,000 Variable Cost per unit = 25 Variable Production Costs = Variable Cost per…

Q: A company produces and sells 1000 units per month at a price of 2000$. By reducing the price by 50$…

A:

Q: The Warner Company sells its only product for P30 and the variable costs amount to P21 per unit.…

A: Margin of safety is a sales over a break even point. It is computed using the below formula.  Margin…

Q: Ratchet Ltd expects to sell 30,000 units this year. The selling price is set at $25 per unit. The…

A: Cost volume profit analysis is useful to find out the different sales volume on the basis of…

Q: A company currently sell goods of Tk. 6,00,000 with a terms of net 30 days. Its average collection…

A: Accounts receivable is the amount of goods sold on credit which is not yet paid. Accounts receivable…

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: The Titan Company provides you with the following information for the current year: Revenues =…

A: It is given that cost of goods sold = $750,000 2/3rd of the above is variable , variable cost =…

Q: Star Boy Company sells a single product, Product X. Last year, sales revenue amounted to P700,000…

A: Here in this question, we are required to determine the income for product X after change in the…

Q: Belowis an income statement for NUBD Company P400,000 (120.000) Contribution margin P280,000…

A: The net income is calculated as difference between sales revenue and total costs.

Q: A business produces a product that's sold for £30 each. Variable costs are £12 for each product an…

A: Introduction:- The following Formula used to calculate as follows under:- Units required =(Fixed…

Q: AZ Humanade, Inc. expects to earn P150,000 next year after taxes on sales of P2,200,000. Stanley…

A: We know that under marginal costing  Profit = Sales Revenue - Total Variable cost - Total Fixed…

Q: The National Inc. will produce 5,000 boxes of chocolates next year. Variable costs is 60% of sales,…

A: The question is related to Marginal Costing. The details are given as under Fixed Cost = P160000…

Q: eather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit.…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: A corporation charges P30 per unit for their goods. The monthly unit variable cost is P22, while the…

A:

Q: sales are estimated at 125,000 units, and it is required to achieve income after tax of 75,000…

A: Total Estimated variable cost  = Total Estimated Sales - Total Estimated Fixed Cost  - Total…

Q: Last year Minden Company Introduced a new product and sold 25,/00 units of it at a price of $100 per…

A: Formulas Break-even in units = Fixed Costs/Contribution MarginBreak-even in sales = Fixed…

Q: C Corporation sells its product for $12 per unit. Next year, fixed expenses are expected to be…

A: Analysis of the target profit helps a company to determine the level of dollar sales required to…

Q: The Bebemo Company has provided information concerning its projections for the coming year as…

A: Cost of goods sold = Fixed manufacturing cost + Variable manufacturing cost

Q: A certain factory produces 2000 Ton per year of its product. Th price of one kilogram is 1.8$. The…

A: With an increase in the price of per unit of product, the net profit increase proportionately.

Q: The Gomex Corp. sells product A for P90 each. Variable costs are P40 per unit. Fixed Costs are…

A: Contribution margin is the sales revenue which is over and above variable costs of the business.…

Q: During a slack period, a manufacturer can sell 3000 articles per month at a price of $1.20 each. A…

A: Following are the given inputs Particulars Amount in $ Per Item Sales (3000 * 12) 36,000 $ 1.2…

Q: How many units would NUBD Company need to sell to earn a profit after taxes of P15,000? * The…

A: Solution: Contribution margin per unit = Selling price - Variable costs = P7 - P2 = P5 per unit…

Q: The BEP Company plans to market a new product. Based on its market studies, it estimates that it…

A: Break-even point is the level of sales at which the net operating profit is zero. In other words,…

Q: NUBD Co. plans to market a new product. Based on its market studies. It estimates that it can sell…

A: Break-Even Point: The breakeven point is the moment at which a product's expenses equal its…

Q: A company makes a single product with a sales price of £12 and a variable cost of £9. Fixed costs…

A: Required sales in   Unit =  Required sales = (Fixed cost +Desired profit)/Contribution per unit…

Q: A business has the capacity to manufacture 720 electronic components per annum that it sells for…

A: Cost sheet is the pro forma of estimating number of units of sales, sales value and other costs…

Q: The selling price of a product has been set at $300 per unit, and at that price the company expects…

A: Target costing is one of costing technique in which target costs are being determined on the basis…

Q: Brolin Company sells a single product. The product has a selling price of $50 per unit and variable…

A: Solution : Contribution margin ratio = 100% - variable cost ratio = 100% - 80% = 20%

Cost volume profit (CVP) analysis

CVP analysis is a cost-volume-profit technique of cost accounting that examines the influence of varying levels of expenses and volume on operating profit. Cost Volume Profit analysis determines the relationship between Cost, Sale Volume, sales price, and Profit. CVP analysis is also known as break-even analysis which helps the business organization, banks, and their management to determine and forecast how a change in total sales and cost affects the profit of the organization. CVP analysis helps in financial decision-making for the budget, expense, tax, market investment, and corporate finance and aims at measuring variations in cost and volume.