A company has a contribution/sales ratio of 40%. It maintains a margin of safety of 20%. If its annual fixed cost amount to Rs. 24 lakhs, calculate its (1) Break even sales (ii) Margin of safety (iii) Total sales (iv) Total variable costs and (v) Profit
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- A vertical oil well has been drilled and completed. The productive zone is between the depths of 2,800 and 2,900 feet, you can assume there is oil in the entire thickness (gross = net). The average porosity is 10%, average water saturation is 20% and the oil formation volume factor is 1.3 RB/Stb. Other reservoirs with similar properties have drainage areas of 40 acres and the recovery factor 10.47305% (it is known with extreme precision!) a) Compute STOIIP and ultimate recovery, using the formals presented in lecture b) This well will also have a gas oil ratio (GOR) of 800 scf/bbl, how much gas is expected to be produced from this well?The ore of a gold mine in the province contains, on average, 0.5 ounce of gold per ton. Method A ofprocessing costs 150Php/ton and recovers 93% of the gold, while Method B costs only 120Php/tonand recovers 81% of the gold. If gold can be sold at 1,200/ounce, which method is better and by howmuch?a. Method A, by 43Phpb. Method A, by 42Phpc. Method B, by 42Phpd. Method B, by 43PhpOnly solve E and F
- Of the following words, the one not related to ethics is: (a) Virtuous (b) Honest (c) Lucrative (d) ProperBVM manufactured and sold 25,000 small statues this past year. At that volume, the firm was exactly in a breakeven situation in terms of profitability. BVM’s unit costs are expected to increase by 30% next year. What additional information is needed to determine how much the production volume/sales would have to increase next year to just break even in terms of profitability? (a) Costs per unit (b) Sales price per unit and costs per unit (c) Total fixed costs, sales price per unit, and costs per unit (d) No data is needed, the volume increase is 25, 000 + 25, 000(0.30) = 32, 500 units.Mauro Products distributes a single product, a woven basket whose selling price is $17 and whose variable expense is $14.96 per unit. The company's monthly fixed expense is $3,672. a. Solve for the company's break-even point in unit sales using the equation method. b. Solve for the company's break-even point in dollar sales using the equation method and the CM ratio.
- Hero expert yaar Hand written solution is not allowed.If the B/C value is exactly 1.0 or very near 1.0, non-economic factors can assist make the decision for the best alternative. Select one: True FalseIn the design of a jet engine part, the designer has a choice ofspecifying either an aluminium alloy casting or a steel casting. Either materialwill provide equal service, but the aluminium casting will weigh 1.2 kg ascompared with 1.35 kg for the steel casting.The aluminium can be cast for $. 80.00 per kg. and the steel one for$ 35.00 per kg. The cost of machining per unit is $. 150.00 for aluminiumand $. 170.00 for steel. Every kilogram of excess weight is associated witha penalty of $. 1,300 due to increased fuel consumption. Cost of using aluminium metal for the jet engine part?
- A buyer for an electrical component is searching for a supplier who has the best combination of low price, low order cycle time and low order cycle variability.Current uage for the component is 100 units per day. the buyer received data on four potineital suppliers (table) Based on the order cycle time, variability and unit price data provided in the table, which supplier should be awarded the component business?Why is it -1000 at NVP (Beta), not -10000Method of full coating is taking into account a. Only direct costs and respective contribution margin b. All costs including fixed and variable costs c. Only direct costs and respective gross margin d. Total sum of fixed costs,but only a paid amount of variable cos