A company has total fixed costs of 250,000 per annum. Its variable costs are 60% of sales and the company wants to earn a net income of 90,000. Selling price is P8.00. How many units must be sold?

Q: A company has $50 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is…

A: Price = Total cost + Mark up on cost

Q: A company has fixed costs of $270,000, a contribution margin per unit is $14, and contribution…

A: Target contribution margin = Target income + Fixed cost = $60,000 + $270,000 = $330,000

Q: Spice Inc.'s unit selling price is $51, the unit variable costs are $38, fixed costs are $102,000,…

A: Formula: Contribution margin = Selling price - variable cost

Q: Prius motorparts company is currently operating at 80% capacity level. The production under normal…

A: Normal production capacity=150,000 units Capacity =80% Variable cost per unit=RM14 Fixed…

Q: A firm has the capacity to produce 1,000,000 units of a product per year. At present, it is able to…

A: Break-even is the point wherein the company is in a situation of no profit no loss.

Q: A company’s fixed operating costs are $430,000, its variable costsare $2.95 per unit, and the…

A:

Q: Mazoon Company has fixed costs of $12,000 and a breakeven point of 600 units . If the company plans…

A: break even point = fixed cost / contribution per unit

Q: A product sells for $295 per unit, and its variable costs per unit are $217. Total fixed costs are…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: Marengo Corporation's total costs at breakeven are $80,000 when it sells 20,000 units. These costs…

A: Fixed cost =  total costs  x 75% = $80000 x 75% = $60,000 Variable cost =  total costs  x 25% =…

Q: Marcus Corporation currently sells 150,000 units of products a year at a price of RM 4.00 per unit.…

A: The degree of operational leverage (DOL) is a ratio that determines how a company's operating income…

Q: The following annual information is for Bressler Corporation:   Product X Revenue per unit: $10.00…

A: Desired units = (Fixed cost + Net income /(1-tax rate))/Contribution margin per unit Total fixed…

Q: Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and…

A: Break-even analysis is used to measure the required sale to recover its total cost.It can be…

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: The fixed cost of a ceramic company is 18,000 OMR. The variable cost is 12 OMR per unit and selling…

A: To calculate the profit, total fixed cost and total variable cost is deducted from the total sales…

Q: A factory with capacity of 700,000 units per year operates at 62% capacity. The annual income is…

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: A bike manufacturing company has fixed costs of $165,000 per annum and the variable costs are 48% of…

A: Calculate contribution margin per unit, if variable costs increased to 56% of sales.Contribution…

Q: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90.…

A: Answer A) Calculation of Breakeven point in units Breakeven point in units = Total fixed Cost/…

Q: A company has monthly fixed costs of $36,000. The variable costs are $2.50 per unit. If the sales…

A: Since there are multiple questions, we will solve only first for you. To get the remaining question…

Q: An organization manufactures and sells a single product that has a variable cost of $24 per unit and…

A: Introduction: Break-even point is the level of cash necessary to cover the company's entire fixed…

Q: Coco Limited sells its product for $20 each. Unit variable costs are $10. At the current volume of…

A: A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or…

Q: Marsh Motors sells 5,000 motors a year for $30 apiece. Variable costs are $8 per unit, and total…

A: The break even sales units are the sales where business earns no profit no loss during the year.

Q: A company that manufactures monitors has fixed costs of $82,000 per annum. The variable costs are…

A: Profit = Contribution - Fixed cost Contribution = Profit + Fixed cost Contribution margin + variable…

Q: A company has fixed costs of $270,000, a contributmargin per unit of $14, and a contribution margin…

A: The Break-even point is the point where the company is able to cover all its costs but does not make…

Q: Blanchard Company manufactures a single product that sells for $120 per unit and whose total…

A: Step 1: Calculate the contribution margin per unit as follows: Step 2: Calculate the break even…

Q: Bozo Company has total costs of $90,000 when it sells 20,000 units. If total fixed costs are…

A: The total cost of product= $ 90000 Total fixed cost= $ 30000 Total variable cost= Total cost- total…

Q: A company has monthly fixed costs of $36,000. The variable costs are $2.50 per unit. If the sales…

A: Unit Contribution  Margin  = Selling Price per unit - Variable cost per unit

Q: costs of P120,000. At a sales volume of P400,000, return on sales is 10%; at a P600,000 volume,…

A: Breakeven sales volume is the amount of your product that must be manufactured and sold in order to…

Q: The selling price of a product is $75.00 per unit, the variable expense is $55.00 per unit, and the…

A: Breakeven Sales = Fixed CostPV Ratio PV Ratio = ContributionSalesx 100

Q: Cartier Corporation currently sells its products for $50 per unit. The company’s variable costs are…

A: The contribution margin is the excess of revenue over variable cost. It indicates the amount…

Q: A company that manufactures ceramic cups has a fixed costs amounting to P270,000 per month Variable…

A: The following information is provided as follows:- Fixed cost per month = P270,000  Variable cost =…

Q: A company can generate a maximum sales of 825,000 a year. The variable cost ratio to sales is 55%…

A: Variable cost ratio = 55% So. Contribution margin ratio = 45%   Desired sales = (128,430 + 168,570)…

Q: morning view industries manufactures and sells a product for $100 per unit. the annual fixed costs…

A: Breakeven sales units are the quantity of units sold that leads to a net income of zero. This means…

Q: A firm has fixed costs of P200,000 and variable costs per unit of P6. It plans on selling 40,000…

A: Target profit before tax = P24,000/(100%-40%) Target profit before tax = P24,000/60% Target profit…

Q: What is the fixed cost per unit at the break-even point?

A: Information Provided: Production units = 8000 Selling price = 1.50P Fixed costs = 2800P Variable…

Q: Your Company has a limit of 65,000 machine hours for the production. It produces three products,…

A: Contribution means the difference between the selling price and variable cost . Fixed cost remain…

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: Rothe Company manufactures and sells a single product that it sells for $90 per unit and has a…

A: Net operating income is the amount of money earned from the operations of an entity. It is an amount…

Q: MicroCam produces a single product. Variable cost per unit is $25, and fixed costs are $95,000 per…

A: Sales at desired profit=Fixed cost+Desired profitSelling price-Variable cost per unit

Q: The Charleston Company has fixed costs of Birr 20,000 per month, and variable costs of Birr 15 per…

A: Profit = Sales - Variable Cost - Fixed Cost

Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…

A: Under Marginal costing profit is  Sales revenue - Total variable cost - Total Fixed cost We know…

Q: A company manufactures and sells one product. It plans to sell 25,000 units for the period. The…

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…

Q: Sooner Industries charges a price of $88 and has fixed cost of $301,000. Next year, Sooner expects…

A: Net operating income = Contribution margin - Fixed costs Contribution margin = Net operating income…

Q: The Blue Co. will produce 25,000 units of product next year. Variable costs ratio is 70%, while…

A: The expected sales needs to be calculated in order to recover the fixed cost and earn a profit of…

Q: A company has a production capacity of 580 units per month and its fixed cost is P185,000 a month.…

A: The Break-even point indicates that total units are to be sold by the business entity to recover its…

Q: Dishman Ltd plans to sell 200,000 items a year for £15 each. Fixed costs are £360,000 a year and…

A: Margin of Safety:- It is the difference in the intrinsic value and the market value of the stock. It…