A new product can be sold at OMR 50 per unit. The fixed cost is 8,640. The variable cost per unit is OMR 30. The company produces 900 units. What is the total profit if the company sells 900 units?
Q: Vicious Cycle, Inc., produces and sells 2,000 bikes. Selling price per unit $2,000 Variable cost per…
A: Contribution margin per unit = Selling price per unit - Variable Cost per unit
Q: A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are…
A: Break-even point: It can be defined as that level of production at which the total costs incurred by…
Q: A firm expects to sell 25,700 units of its product at $11.70 per unit and to incur variable costs…
A: Introduction: Contribution margin : Deduction of all variable costs from the sales price derives the…
Q: Sheridan Inc. sells a product for $106 per unit. The variable cost is $64 per unit, while fixed…
A: Contribution margin per unit = Sales price - variable cost = $106 - 64 = $42 per unit
Q: Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit of $80,000.…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
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: XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with…
A: Formula: Profit = Revenues - Expenses.
Q: Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Apex Company sells a product for $220 per unit. The variable cost is $170 per unit, and fixed costs…
A: The Break-even point is the point where the company does not earn profit nor does it incur a loss in…
Q: Kappa Inc. produces a product that has a variable cost of $8/unit. The company's fixed costs are…
A: Solution: Contribution margin per unit = sales price - variable cost = 12 - 8 = $4 per unit Break…
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: Jamie Quinn, a sole proprietor, has the following projected figures for next year: Selling price…
A: Formula: Break even point in units = Fixed cost / ( Selling price per unit - variable cost per unit…
Q: O'Shaughnessy Inc. sells a product for $90 per unit. The variable cost is $65 per unit, while fixed…
A:
Q: Summersville Production Company had the following projected information for the current year:…
A: Formula: Break even point in units = Fixed cost / ( Selling price per unit - variable cost per unit…
Q: ABD Corporation has the following information about its single product: Selling Price per unit ₱20…
A: Selling price per unit P20.00 Less: Variable Costs per Unit P12.00 Unit Contribution Margin…
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 Deduction of variable cost from selling…
Q: ohn Co. produces a product that sells for P80. The variable manufacturing costs are P50 per unit.…
A: Contribution margin per unit means the difference of selling price per unit to the total variable…
Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit,…
A: Contribution margin is the price of the product deduct all the linked variable costs, results from…
Q: Basic illustration corp. produces and sells product X. The selling price is 25 and the variable cost…
A: Ans. The break even point is determined by dividing Fixed cost by contribution per unit.…
Q: RED manufactures a product which sells at £30 per unit and the variable cost is £23 per unit. Fixed…
A: we know that, Break even point = Fixed cost / contribution per unit Contribution per unit = selling…
Q: If a firm with $49,000 in fixed costs breaks even on 7,000 units, how many units must the firm sell…
A: Whenever sales generated and costs incurred within a specific period are equal, a corporation breaks…
Q: What is the break-even point expressed as a percent of capacity? and (b) What would be the net…
A: Break even point refers to the point where the company earns no profit or no loss. That the company…
Q: Felix Company produces a product that has a selling price of $12.00 and a variable cost of $9.00 per…
A: Contribution margin per unit = Selling price - Variable cost Contribution margin ratio =…
Q: sales price of $250 is required to earn a target profit of $45,000 if fixed costs are $1200,…
A: Profit can be calculated by deductions of fixed cost and variable cost from sales.
Q: The selling price of a particular product is $81.00 per unit, the variable expense is $55.00 per…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: Planet Company sells a product for $16 per unit, variable cost is $12 per unit, and the total fixed…
A: Given, Selling price = $16 per unit Variable cost = $12 per unit Fixed cost = $6,000
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: If fixed costs are $1,214,000, the unit selling price is $204, and the unit variable costs are $109,…
A: Break-even sales (units) = Total fixed costs / Contribution margin per unit Contribution margin per…
Q: Gladstorm Enterprises sells a product for $50 per unit. The variable cost is $34 per unit, while…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
Q: The following annual information is for Dexter Corporation: Product A Revenue per unit: $20.00…
A: Formula: Unit contribution margin = Selling price - Variable cost per unit
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: What is the breakeven point in unit, assuming a product's selling price is $100 fixed costs are…
A: Compute the CPU as follows:
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 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: Zoro, Inc. produces a product that has a variable cost of $6.00 per unit. The company’s fixed costs…
A: Given: Variable cost per unit = $ 6 Fixed costs = $ 30,000 Cost of product sold = $ 10 Estimated…
Q: The Marietta Company has fixed costs of $40,000 and variable costs are 75% of the selling price. To…
A: Step 1: Compute the break-even sales:
Q: Hemlock, Inc. sells equipment for $80. Its variable cost is $45 per unit and its fixed costs are a…
A: SOLUTION- GIVEN, SELLING PRICE PER UNIT = 80$ UNITS = 5000 UNITS VARIABLE COST = 45 VARIABLE COST…
Q: O'Boyle Co.'s fixed costs are $256,000, the unit selling price is $36, and the unit variable costs…
A: Contribution margin = Sales -Variable cost=$36 -$20=$16 Fixed cost =$256000 Break even sales (Units)…
Q: ABC company sells shoses for $450. The variable cost is $200 per unit. The fixed costs are $750000.…
A: Please find the answers to the above questions below:
Q: Golden Corporation contemplates to market a new product. Estimated fixed costs is P1,000,000. The…
A: Variable cost ratio is the ratio of toral variable costs with total sales revenue. Contribution…
Q: A company’s sales figure is £250,000 and its margin of safety ratio is 40%. Assuming that the fixed…
A: The margin of safety sales is the difference between the current sales and break even sales.
Q: A company currently sells 400 units at a sales price of $300. Its contribution margin is 40%, and…
A: The calculation of Margin of safety is shown hereunder : Actual sales = $ 120,000 ( 400 units × $…
Q: Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $183,800, how…
A: Break even is a situation whereby the entity is neither in losses nor earning any profits.
Q: Montoya Manufacturing has fixed costs of $2,500,000 and variable costs are 40% of sales. What are…
A: Variable cost: This is a cost that changes with the number of units produced or the level of…
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: igelow Inc. sells a product for $1,200 per unit. The variable cost is $816 per unit, while fixed…
A: Break even point is a point where total expenses are equal to total sales. At break even point…
Q: Versa Inc. sells a product for $100 per unit. The variable cost is $75 per unit, and fixed costs are…
A: (a) Break-even point in sales units = Fixed costsSales price per unit-Variable cost per units…
Q: The Waterfall Company sells a product for $150 per unit. The variable cost is $80 per unit, and…
A: The profits can be arrived from the income statement of the company. All the revenues, and expenses…
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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. 2,000Maple 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?
- 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.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.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.
- 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 245,000Gelbart 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?
- 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?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. 11,200A company has prepared the following statistics regarding its production and sales at different capacity levels. Total costs: 1. At what point is break-even reached in sales dollars? In units? (Hint: Use the capacity level to determine the number of units.) 2. If the company is operating at 60% capacity, should it accept an offer from a customer to buy 10,000 units at 3 per unit?