ABC Company has fixed costs of P1,000,000O, Break-even sales of P 5,000,000 and contribution margin ration of 20%. What is the projected profit at P7,500,000 sales? 1. P 500,000 2. P 1,500,000 3. P 2,000,000 4. P4,000,000
Q: ABC Company breaks even at P300,000sales and earns P30,000 at P350,000 sales. Which of the following…
A: At break even sales, profit = 0 Increase in Profit = Increase in Sales - Increase in variable costs…
Q: Cullumber Company's break-even point in sales dollars is $650,000. Assuming fixed costs are…
A: Sales revenue needed to earn target net income = (Fixed costs + target net income) / Contribution…
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: After reviewing its cost structure (variable costs of P6.00 per unit and monthly fixed costs of…
A: 1. Contribution margin=contributionsales=P200000P500000×100=40% Profit before…
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: Jasin Company projected operating income ( based on sales of 450,000 units ) for the coming year as…
A: The Cost-Volume-Profit analysis or CVP analysis is a method or technique used in cost accounting…
Q: An organization's break-even point is 4,000 units at a sales price of P50 per unit, variable cost of…
A: Increase in Profit = Additional units sold * (Sales price per unit -variable price per unit)
Q: A company’s fixed operating costs are $430,000, its variable costsare $2.95 per unit, and the…
A:
Q: National Co.’s variable costs are 30% of sales. The company is contemplating an advertising campaign…
A: Variable costs are those costs which changes with change in activity level. Fixed costs are costs…
Q: A company sells their product for $300 per unit and has fixed costs of $60,000 per month. If they…
A: Contribution margin ratio shows revenue over and above variable costs.
Q: Mazoon Company has fixed costs of $12,000 and a breakeven point of 600 units. If the company plans…
A: Breakeven point in units = Fixed costs/ Contribution margin per unit Oeprating income = Contribution…
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: What is the break-even volume?
A: In order to calculate breakeven point, we need to calculate contribution. To calculate contribution…
Q: ABC Company produces two products X and Y, which account for 60% and 40%, respectively, of total…
A: Breakeven is the point where a business has no loss and no profit.
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: NUBD Co. incurs annual fixed costs of P250,000 in producing and selling a single product. Estimated…
A: The break even sales are the sales where business earns no profit no loss during the period.
Q: Given the selling price at P120 per unit; contribution margin at 25% and fixed cost at P250,000, the…
A: Break even point is the unit level at which the company has neither profits nor losses
Q: 3. After reviewing its cost structure (variable costs of P7.50 per unit and monthly fixed costs of…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
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: 3. After reviewing its cost structure (variable costs of P7.50 per unit and monthly fixed costs of…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Campbell Company has fixed costs of $200,000, sales price of $50, and variable cost of $30 per unit.…
A: To earn a target profit of $50,000, Campbell must earn a contribution margin of $250,000…
Q: After reviewing its cost structure (variable costs of P6.00 per unit and monthly fixed costs of…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
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: DEF Corporation breaks even at P60,000 sales and earns P6,000 at P70,000 sales. Which of the…
A: Cost-volume-profit analysis is a method of analyzing the effect of change in variable and fixed…
Q: Mazoon Company has fixed costs of $15,000 and a breakeven point of 600 units. If the company plans…
A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…
Q: A company's fixed operating costs are $740,000, its variable costs are $2.25 per unit, and the…
A: Paticulars Amount Sales price per unit 4.65 Less Variable Expenses per unit…
Q: 3. After reviewing its cost structure (variable costs of P7.50 per unit and monthly fixed costs of…
A: When desired sales needs to be calculated, following formula shall be used: Desired sales units =…
Q: Boo Company's current sales volume is 7,200 units with selling price of P15 per unit. The company…
A: Break even point = Fixed costs /Contribution margin per unit where, Contribution margin 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: After reviewing its cost structure (variable costs of P6.00 per unit and monthly fixed costs of…
A: This sum relates to the cost volume profit analysis. Due to our policy , we can not answer more…
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: The contribution margin ratio is 25% for Company A and the break-even point in sales is $260,000. If…
A: The break even sales are calculated as fixed cost divided by contribution margin ratio.
Q: If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000,…
A: Break even point shows the sales in units or amount at which the company will be in a position of no…
Q: After reviewing its cost structure (variable costs of P6.00 per unit and monthly fixed costs of…
A: Fixed cost is not considered at the time of decisions making for additional units. The additional…
Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…
A: The contribution margin per unit remains the same at all the sales level as the variable costs will…
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: Assume that sales are predicted to be $15,000, the expected contribution margin is $6,000, and a net…
A: Break even point: It is calculated by dividing the fixed cost by the contribution margin ratio of…
Q: 1. Assuming that the cost structure and the selling price remain constant, what is the percentage of…
A: Requirement 1 is as follows: Result:
Q: Galactica Company has fixed costs of P100,000 and breakeven sales of P800,000. Based on this…
A: Formula: Break even sales = ( Fixed cost / Contribution margin ) x 100
Q: Company M's fixed costs were P45,000, its variable costs were P24,000, and its sales were P80,000.…
A: Break-even point:- Break-even point is that point in which the total cost of particular production…
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: Allen corp, has a contribution margin of 46% and fixed costs of 250,930. What is the break-even…
A: The Break-even point indicates that total units are to be sold by the business entity to recover its…
Q: break-even point in pesos
A: Weighted contribution margin ratio = (Sales mix percentage of X * Contribution margin ratio of X) +…
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: McKee Corporation has annual fixed costs of $12 million. Its variable cost ratio is 0.60.a.…
A: Break-even point: It can be defined as that level of production at which the total costs of the firm…
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: National Co. has revenue of P500,000, variable costs of P300,000 and pretax profit of P150,000. If…
A: Answer) Calculation of New Break-eve Point New Break-even Point = Revised Fixed Cost/ Revised…
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- 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.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?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?Maple 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.If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month, what is their degree of operating leverage? 0.21 1.21 2.4 5.7
- 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.Margin of safety Jorgensen Company has sales of 380,000,000, and the break-even point in sales dollars is 323,000,000. Determine Jorgensen Companys margin of safety as a percent of current sales.Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and their product has a per-unit contribution margin of $250, how many units must they sell to reach their target income? A.20 B. 40 C. 60 D. 120
- 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?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 245,000