A company that manufactures monitors has fixed costs of $78,000 per annum. The variable costs are 30% of sales and the profit is $64,500. When the selling price was reduced by 10%, the sales volume increased by 20%. What was the original sales revenue?
Q: Green Corporation expects to sell 3,000 plants a month. Its operations manager estimated the…
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A: Solution: Introduction: Contribution margin is the incremental Profit earned for the units sold by…
Q: what the company's margin of safety in units ?
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A: Formula: Contribution margin = Selling price - variable cost
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A: In this question, we will find a breakeven point in dollar sales which can be calculated by dividing…
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Q: Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of…
A: Formula used: Break even point in dollars = Break even point in units x Selling price per unit
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A: The Break-even point is that level of sales, where the total cost i.e variable and fixed both are…
Q: A company that produces cameras has fixed costs of $153,000 per annum. The variable costs are 45% of…
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Q: A certain company has the capacity to produce 500,000 units of a product yearly. This year, the…
A: Answer - Formula for Break even Point - Break even Point = Fixed Cost/ (Sales price per unit -…
Q: The annual variable production costs for a plant operates at 70% capacity are $600,000 while the sum…
A: Workings: 1) Computation of income statement at 70% capacity Particulars Amount $ Per unit $…
Q: If the company has a target profit of $15,000, how many units must be sold
A: Breakeven point: Breakeven point is the point at which the company makes no profit nor loss or it is…
Q: Your Company's single product has a selling price of $15 per unit. Last year the company variable…
A: Given information, Selling price=$15 per unit Variable cost= $9 per unit Fixed expenses =$90,000 Net…
Q: A company that manufactures monitors has fixed costs of $82,000 per annum. The variable costs are…
A: Sales revenue refers to the actual amount of income which is earned by a company or a corporation…
Q: A company expects to sell 30,000 units of a product next year. Variable production cost is ₱25 and…
A: Units = 30,000 Selling price = P Sales = 30000*P = 30000P Variable cost = P 25 Variable cost =…
Q: Green Corporation expects to sell 3,000 plants a month. Its operations manager estimated the…
A: Minimum selling price is the price which is used to prevent the items from being sold with the no or…
Q: Roland had revenues of $610,000 in March. Fixed costs in March were $199,670 and profit was $50,430.…
A: The contribution margin is the amount by which your company's sales revenue exceeds its variable…
Q: Liman Corporation has a single product whose selling price is $140 and whose variable expense is $60…
A: The target profit refers to the expected amount of profit that the entity wants to achieve. The…
Q: TORT Company produced 40,000 units of product in 2020. Sales Revenue per unit was $20; variable cost…
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A: Current Sales = $40000 Sales reduces to half in next month. Next Month Sales = $20000 Variable Cost…
Q: ast month the Blank Inc. had sales of 5,000 units sold for P40 each. The total variable expenses…
A:
Q: Your Company's single product has a selling price of $15 per unit. Last year the company variable…
A: Break-even analysis is a technique used widely by production management. It helps to determine the…
Q: The market price for a product has been $50 per unit, but competitive pressures have reduced…
A: Manufacturing costs: Manufacturing costs are the costs which are involved in converting the raw…
Q: Auto Tires, Inc. sells tires to service stations for an average of $45 each. The variable costs of…
A: Breakeven sales point means point of level at which business is only recovering its fixed costs and…
Q: Lewis Ltd produces and sells a single product. Each product sells for £50. Fixed costs are £550,000…
A: The break even sales are calculated as fixed cost divided by contribution margin ratio. Margin of…
Q: Last year, the contribution margin ratio of Lamesa company was 30%. this year, fixed costs are…
A: Contribution margin is the amount of revenue remaining after covering variable cost.
Q: Miltank Company sells a single product for ₱20 per unit. Last year, the company's sales revenue was…
A: The contribution margin per unit is calculated as selling price less variable cost per unit
Q: Jasmine Inc. makes a single product that it sells for $25 each. Variable costs are $13 per unit and…
A: Contribution margin is sales revenue over and above it's variable costs. In order to earn target…
Q: Last year, Flynn Company reported a profit of $70,000 when sales totaled $520,000 and the…
A:
Q: Company XYZ is currently operating with a 60% contribution margin. The company is planning an…
A: Contribution margin= Contribution/ Sales Contribution= Sales-Variable cost
Q: The cost of producing a calculator consists of $250.00 per unit for labor and material cost, $75.00…
A: The cost-volume-profit analysis or the CVP analysis is a method or technique used in cost accounting…
Q: Last year, Bread City had sales of 70,000 loaves resulting in revenues of $350,000. Variable costs…
A: Solution:- Profit means the surplus of revenue over the incurred costs.
Q: A company that produces cameras has fixed costs of $168,000 per annum. The variable costs are 45% of…
A: A company has producing cameras which has fixed cost of $168000 per annum , the variable cost is 45%…
Q: The Sunshine Company manufactures and sells pens. Currently, 6,000,000 units are sold per year at…
A: Operating income = Unit ( Sales - Variable ) - Fixed cost Unit sold =6,000,000 Sale price per unit =…
Q: Frank Corporation has a single product. Its selling price is $80 and the variable costs are $30. The…
A: Formula: Break even point in unit sales = Fixed costs / ( Selling price - variable cost )…
Q: Last year Minden Company introduced a new product and sold 25,300 units of it at a price of $95 per…
A: Computation of net operating income/loss Sales - variable cost - fixed costs 25300 units * ($95 -…
Q: The fixed costs incurred by a automotive shop are $200,000 per year. Variable costs are 60% of the…
A: Variable cost = 60% of annual revenue = $300,000 x 60% = $180,000
Q: The total fixed costs per year for the company are $674,000. Required: a. What is the…
A: For calculating the break even sale with different products , we need use the following formula :-…
Q: One company sells a product at $ 40 and its variable costs are $ 30 per unit, while the company's…
A: Introduction: Margin of safety = Actual sales value - Break even sales value Deduction of break even…
Q: A company has $25 per unit selling price, $7.00 per unit in variable production cost and $2.00 per…
A:
Q: Lin Corporation has a single product whose selling price is $120 per unit and whose variable expense…
A: Calculate the unit sales needed to attain a target profit of $10,000: 1. Contribution margin per…
Q: The contribution margin ratio is 20% for Grain Company and the break-even point in sales is…
A: To arrive at a contribution margin (CM), an income statement with variable costs deducted from sales…
Q: Your company’s single product has a selling price of $15 per unit. Last year the company variable…
A: Break-even analysis is a technique used widely by production management. It helps to determine the…
Q: Roland had revenues of $606,000 in March. Fixed costs in March were $197,210 and profit was $51,250.…
A: Break even point with profit is a managerial accounting tool which helps to identify the required…
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: 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: The fixed costs of Chun Company are $309,000 and the total variable costs for its only product are…
A: Contribution = Selling price - Variable cost Increase in contribution margin = 120 units × $100×55%…
Q: : Selling Price $ 60 Variable manufacturing cost $ 33 Fixed manufacturing cost $ 250,000 per…
A: The cost volume profit analysis of a manufacturing company is a critical activity of management.…
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- 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.Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs per gas grill are 225, and the average price per gas grill is 600. Required: 1. How many gas grills must Gelbart Company sell to break even? 2. If Gelbart Company sells 46,775 gas grills in a year, what is the operating income? 3. If Gelbart Companys variable costs increase to 240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?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.
- A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per year for reworking products. What is a good estimate of non-value-added costs? a. 126,000 b. 70,000 c. 56,000 d. 130,000Maple 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?
- 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.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 245,000If 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
- Company 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.Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200Klamath 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?
