A company has total fixed costs of $240000 and a contribution margin ratio of 30%. The total sales necessary to break even are O $200000. O $800000. O $312000. O $560000.
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…
Q: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a…
A: Formula: Break even sales dollars = Fixed cost / contribution margin ratio
Q: A Company has Sales of P1,457,900, a Contribution Margin Ratio of 35%, and Margin of Safety of…
A: Given that, sales = P1457900 Contribution margin ratio = 35% Margin of safety = P224000
Q: A company requires $1305600 in sales to meet its operating income target. Its contribution margin is…
A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…
Q: ABC Company produces two products X and Y, which account for 60% and 40%, respectively, of total…
A:
Q: breakeven point in sales dollars is:
A: Given information is: Sales = $200,000 Variable cost = $150,000 Fixed cost = $30,000
Q: Management believes it can sell a new product for $8.50. The fixed costs of production are…
A: Excel Spreadsheet:
Q: Jarvis Company produces a product that has a selling price of $20.00 and a variable cost of $15.00…
A: Contribution margin per unit = sales price - variable cost = $20 - $15 = $5 per unit Contribution…
Q: Felix Company produces a product that has a selling price of $12.00 and a variable cost of $9.00 per…
A:
Q: If fixed costs are $805,000 and variable costs are 64% of sales, the break-even point in sales…
A: Break-even analysis is the easiest form of cost-volume-profit analysis. Break-even analysis is used…
Q: Sweet Manufacturing is planning to sell 400,000 hammers for $3 per unit. The contribution margin…
A: Contribution margin per unit = Sales x Contribution margin ratio = $3 per unit x 20% = $0.60 per…
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: What is the break-even volume?
A: In order to calculate breakeven point, we need to calculate contribution. To calculate contribution…
Q: Jackson Company recently calculated its break-even sales revenue to be $32,000. For each dollar of…
A: Cost Volume Profit (CVP) CVP analysis specifies concerning the connection between the Turnover,…
Q: A bike manufacturing company has fixed costs of $120,000 per annum and the variable costs are 37% of…
A: Contribution margin = ( 1 - Variable cost ) Break-even point = FIxed cost / Contribution margin…
Q: Ritz Furniture has a contribution margin ratio of 0.17. If fixed costs are $166,600, how many…
A: Formula: Break even point in sales dollars = Fixed cost / Contribution margin ratio Division of…
Q: For Sheffield Corp., sales is $1260000 (6300 units), fixed expenses are $480000, and the…
A: Calculate sales per unit:Sales per unit = (Sales amount / sales in units)Sales per unit = $1,260,000…
Q: How much sales are required to earn a target net income of OMR 200,000 if total fixed costs are OMR…
A: Contribution refers to earnings left after deducting all direct costs from the sales revenue. It is…
Q: Maple Company has sales of P550,000 and has variable costs of P330,000.Fixed costs are P180,000. a.…
A: Contribution margin = Sales - Total variable cost = P550,000 - P330,000 = P220,000 Contribution…
Q: NUBD Company is planning to produce two products, X and Y. NUBD is planning to sell 100,000 units of…
A: Total contribution margin = (Sales units of x * Sales price *(1- variable costs %) + (Sales units of…
Q: A firm expects to sell 25,700 units of its product at $11.70 per unit and to incur variable costs…
A: Cost-volume-profit analysis is a technique that is used to determine the impact of costs and sales…
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: 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: 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: NUBD Company is planning to produce two products, X and Y. NUBD is planning to sell 100,000 units of…
A: Formula: Contribution margin = Sales - variable cost
Q: Concord Corporation has a weighted-average unit contribution margin of $30 for its two products,…
A: The break-even point sales in units has been calculated by dividing fixed cost with weighted average…
Q: A company has total fixed costs of 250,000 per annum. Its variable costs are 60% of sales and the…
A: Variable cost ratio = 60% So, Contribution margin ratio = 40% Contribution margin per unit = P8 x…
Q: Idaho Corp. has fixed costs of $20,000 and a contribution margin ratio of 50%. Currently, sales are…
A: Margin of Safety: The margin of safety is a notion in investing that states that investor should…
Q: Ajani Company has variable costs equal to 40% of sales. The company is considering a proposal that…
A: Variable costs on increased sales = Increase in sales x 40% = $10,000 x 40% = $4,000
Q: Bloom company management predicts that it will incur fixed costs of $160,000 and earn pretax income…
A: 1. Following is the calculation of total sales in dollars:
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: A company has total fixed costs of $200,000 and a contribution margin ratio of 20%. The total sales…
A: The dollar amount of revenue earned by a company that covers all the expenses that are both fixed…
Q: company's fixed operating costs are $430,000, its variable costs are $2.95 per unit, and product's…
A: As per Given information: Fixed cost = $430,000 Variable cost =$2.95 Sale price = $4.50
Q: If fixed costs are $729,000 and variable costs are 60% of sales, what is the break-even point in…
A: Formulas: Break even sales = Fixed cost / PV ratio Break even sales = Fixed cost / (1- variable cost…
Q: If a company has fixed costs of S6.000 per month and their product that sells for $200 has a…
A: Formula: Break even point in units = Fixed cost / Unit contribution margin
Q: For Crane Company, sales is $1000000, fixed expenses are $150000, and the contribution margin per…
A: Sales = $1000000 Fixed cost = $150000 Contribution margin per unit = $60
Q: A company has set its initial selling price at $28 per unit. Its variable manufacturing costs are…
A: (Note: Since you have posted a multi-part question, we will solve the first three parts for you. For…
Q: The break-even point in units sold of ABC Company is 44,000 units. If fixed costs is equal to…
A: Contribution margins per unit is calculated by deducting the variable cost from sales value.
Q: A company with P280,000 of fixed costs has the following data: Product A Product B Sales price per…
A: Break-even point can be defined as the point at which total cost and total revenue are equal. There…
Q: 1. ARC Company has fixed costs of P125,000. At the breakeven point, 100,000 units are sold. If…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
Q: roblem: The Company has Sales of P420,000, a Contribution Margin Ratio of 40%, and Margin of Safety…
A: Solution Given Sale 420000 Contribution margin 40% Margin of safety 100000
Q: A bike manufacturing company has fixed costs of $130,000 per annum and the variable costs are 36% of…
A: Old contribution margin ratio = 100% - 36% Old contribution margin ratio = 64%
Q: D&R Corp. has annual revenues of $262,000, an average contribution margin ratio of 33%, and fixed…
A: Operating income is a measure that shows how much of a company's revenue is transformed into…
Q: Bramble Corp. has a weighted-average unit contribution margin of $30 for its two products Standard…
A: Formula to compute the net income.
Q: Maroon Company's contribution margin ratio is 24%. Total fixed costs are $84,000. What is Maroon's…
A: Break-even point refers to the amount of revenue to make the loss or profit zero i.e the total…
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- 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. 2,000Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are $600,000. Company B is a service firm with current service revenue of $2,800,000 and a 15% contribution margin. Company Bs fixed costs are $375,000. Compute the degree of operating leverage for both companies. Which company will benefit most from a 15% increase in sales? Explain why.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?
- Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true? a. Sales will increase by 300,000. b. Overall operating income will increase by 2,600. c. Overall operating income will decrease by 25,000. d. Overall operating income will not change. e. Common fixed cost will decrease by 27,600.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.Klamath 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?
- 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 245,000Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable costs are $5 per unit, what are their fixed costs? $240,000 $200,000 $260,000 Their fixed costs cannot be determined from the information presented.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.