A firm sells a single product for ₱100 per unit. The firm’s fixed expenses total ₱500,000 per year. The variable production cost is ₱40 and commission per unit is ₱5. Currently the firm has a net income (ignoring tax) of ₱150,000. Assume the firm wanted to determine their breakeven point, how much would be the change in their sales? a. An increase of 20% b. A decrease of 20% c. An increase of 23% d. A decrease of 23% e. An increase of 44% f. A decrease of 44%

Q: A telephone company have a production capacity of 500,000 units per month. At its present capacity…

A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: A firm sells a single product for ₱80 per unit. The firm’s fixed expenses total ₱320,000 per year.…

A: Here, Fixed Cost is ₱320,000 Selling Price per unit is ₱80 Variable Cost per unit is ₱23  Commission…

Q: The company has P3,000,000 sales.  The variable costs are equal to fifty cents for every peso of…

A: The percentage increase in net income can be calculated with the help of degree of financial…

Q: C2 Company had sales of Php576,000 and variable costs of Php324,000. Fixed costs amount to Php96,000…

A: Profits are the net income after deducting related expenses from total sales.

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: The break-even point for sales of Luckyme is P200,000 with a contribution margin of 40%. Assuming…

A: Break even sales = P 200,000 Contribution margin = 40% Profit = P 100,000

Q: Levi Company has revenues of P500,000, variable costs of P300,000, and pretax profit of P150,000. If…

A: Solution:- calculation of the new breakeven point (in pesos) as follows under:- The following…

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: 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: C2 Company had sales of Php576,000 and variable costs of Php324,000. Fixed costs amount to Php96,000…

A: Contribution margin represents the part of sales that is available to cover fixed costs that is…

Q: ABC Inc. currently sells P12,000,000 per annum. Its credit period and DSO are both 30 days, and 1.5%…

A: Given, Old sales is P12,000,000 New sales increase by P3,000,000.

Q: The Break-even point in peso sales for ABC Company is Php360,000 and the Company's contribution…

A:

Q: Lucid Images Ltd manufactures premium high definition televisions. The firm’s fixed costs are…

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: firm provided the following data for the year: Selling price per unit→ ₱45; Variable production cost…

A:

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: arukh Corporation sells a single product for Rs. 15 per unit. Last year, the company's sales revenue…

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

Q: KR Corporation's break-even-point in sales is Rs. 900,000, and its variable expenses are 75% of…

A: Contribution margin ratio = 1 - variable expense ratio= 1 - 0.75= 0.25

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: High Inc. has annual sales of P40,000,000 and keeps average inventory of P10,000,000. On average,…

A: The cash conversion cycle is a period of time that expresses how many days it takes a company to…

Q: National Foods, Inc., makes a packet of corn flour that wholesales for Rs. 60.00. Each has variable…

A: Amount ($) Sales [30,000*Rs.60] 1,800,000 Less: Variable operating Costs [30,000*Rs.35]…

Q: Nette and Company has sales of Php400,000 with variable costs of Php300,000, fixed costs of…

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

Q: In its first year of operations, a firm had P50,000 of fixed operating costs. it sold 10,000 units…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Zeal Corporation is thinking about the dropping of its product Z.Sales of the product total…

A: Formula: Net profit = Revenues - expenses Deduction of expenses from revenues derives the net…

Q: Product A has a selling price of P50 per unit and variable expenses of P30 per unit. If the company…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 2).  annually. Company’s annual sales are OMR (4) million, its tax rate is 30%, and its rate on…

A: Degree of operating leverage computes the times by which contribution margin exceeds earning before…

Q: Company is thinking about the dropping of its product Z. Sales of the product total Rs.400,000 per…

A: Avoidable fixed expenses = Total fixed expenses - Unavoidable fixed expenses  = Rs. 150,000  - Rs.…

Q: Zeal Corporation is thinking about the dropping of its product Z. Sales of the product total…

A: Calculate the net profit/loss when Product Z is continued: Particulars Amount ($) Sales…

Q: L. Boyd Company's total fixed costs are $130,000 per year. The company's break-even point in sales…

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

Q: Compute the number of units or product that must be soid if the company is to break-even in each of…

A: Note: Since you have posted multiple questions, we will solve the first question up to 3 sub-parts.…

Q: A plant operating at 100% capacity (1000 kg product per year) has an annual net profit of $40,000…

A: Break even point(BEP)= Fixed cost/Contribution per unit Variable cost ratio + Contribution Ratio=…

Q: Farukh Corporation sells a single product for Rs. 15 per unit. Last year, the company's sales…

A: No. of units sold = Total sales / Sales price per unit = Rs. 225,000 / Rs. 15 per unit = 15,000…

Q: Hong Sdn Bhd makes a patented rubber tapping machine that sells for RM6. Each machine has a variable…

A: Ans 1. Leverage is defined as an investment strategy that is used to borrow the funds that used for…

Q: Sales volume for a company is million dollars per month. If the company spends $350,000 per month as…

A: The break-even point: The break-even sales or point refers to the level of sales where the…

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

A:

Q: National Co. has the opportunity to increase its annual sales by P125,000 by selling to a new,…

A: Manufacturing and selling expense = 125,000 x 70% = 87,500 Uncollectible expense = 125,000 x 10% =…

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

A: Profit = Revenue-Expenses

Q: A company with fixed costs of P40,000 is now breaking even on sales of  P160,000. How much income…

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

Q: Coats Corp. generates $10,000,000 in sales.  Its variable costs equal 85 percent of sales and its…

A: Let the interest expense = I EBIT = $1000000 If sales increases by 10%, net income increases by…

Q: A firm’s selling price was ₱45.00 per unit. Fixed expenses totaled ₱150,000, variable expenses were…

A: Given, Selling price = ₱45 per unit Variable expense = ₱20 per unit Fixed cost = ₱150,000

Q: Cebu Tires and Rubber Company has a capacity to produce 650,000 tires of variable sizes per year. At…

A: The sales volume refers to the quantity of merchandise and the break-even sales volume is the…

Q: Last year company A introduced a new product and sold 25,900 units at $97.00 per unit.  The product…

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

Q: Xeta Inc., sells a box for $15 each. The box have a variable cost of $4 per unit, and the products'…

A: the Break-Even Point can be defined as a point where total costs (expenses) and total sales…

Q: Rancor Electronics sells 6,000 mp3 players and earns Tk.3.0 million in revenues. Rancor's variable…

A: Introduction:- CVP analysis is used to calculate of profit in different levels of volume. It is…

Q: Based on the facts of Easy Problems Corp. If variable costs per unit will go up by Php 5.00, the…

A: Breakeven sales is that level of sales revenue at which business is only recovering it's fixed costs…

Q: Adams Company sells a single product. The product sells for $100 per unit. The company’s variable…

A: Adams Company sells a single product. The product sells for $100 per unit. The company’s variable…

Q: Rancor Electronics sells 5,000 mp3 players and earns Tk.2.5 million in revenues. Rancor’s variable…

A: At Break even point  Total sales =Total fixed cost +Total variable cost  Revenue =25000000 Total…