An industry is selling a product for Rs. 10 per unit. The fixed cost for assets is Rs. 40000 with variable cost of Rs. 6 per unit. How many units should be produced to break even? O a. OMR12000 O b. None of the options O c. OMR14000 O d. OMR10000
Q: What is the amount of product that the firm with a unit selling price of 10 TL, a variable cost per…
A: Selling Price per unit = 10 Variable Cost per unit = 8 Total Fixed Cost = 10,000 Quantity Sold For…
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A: 1. Compute the contribution margin percentage.
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A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS Answer = $3,000,000
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A: Hi student Since there are multiple questions, we will answer only first question. Breakeven point…
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A: Formula: Profit = Revenues - Expenses.
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A: Contribution margin per unit = sales price - variable cost = 10-6 = OMR 4 per unit
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A: Profit = Contribution margin - Fixed costs where, Contribution margin = Sales - Variable costs
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Q: Time left 0:06:05 An industry is selling a product for Rs. 10 per unit. The fixed cost for assets is…
A: Contribution margin per unit = sales price - variable cost = 10-6 = OMR 4 per unit
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A: EOQ formula: EOQ = [2*d*s/h]^0.5 where d = annual quantity = 2,400,000 s = cost per order = 15 h =…
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A: Contribution margin per unit = Selling price - Variable cost per unit = $13 - $8 = $5
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A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
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- What is the accounting break-even point? Price = $62 per unit; variable cost = $32 per unit; fixed costs = $60,000 per year; depreciation = $0. Please answer in formula/handwritten format, not excelQ.1 Krishna Gems Ltd has just installed Equip.-R at a cost of Rs 2,00,000. The machinehas a five year life with no residual value. The annual volume of production isestimated at 1,50,000 units, which can be sold at Rs 6 per unit. Annual operatingcosts are estimated at Rs 2,00,000 (excluding depreciation) at this output level.Fixed costs are estimated at Rs 3 per unit for the same level of production.Krishna Gems Ltd has just come across another model called Equip.-S capable ofgiving the same output at an annual operating cost of Rs 1,80,000 (exclusive ofdepreciation). There will be no change in fixed costs. Capital cost of this machine isRs 2,50,000 and the estimated life is for 5 years with no residual value.The company has an offer for sale of Equip.-R at Rs 1,00,000. The cost ofdismantling and removal will be Rs 30,000. As the company has not yet commencedoperations, it wants to sell Machine-R and purchase Equip.-S. Nine Gems Ltd will bea zero-tax company, for seven years in view of…26-If the sales of the company are OMR 300,000, Profit OMR 30,000, variable cost 60%, find out the sale volume to earn a profit of OMR 75,000. O a. OMR 400000 O b. OMR 412500 O c. OMR 375000 O d. OMR 451200
- The Cookie Casa has fixed production costs of $50,000 annually. Annual depreciation expense is $50,000, with Net Income of $100,000. The sales price is $1.00 per cookie while the variable cost per cookie is $0.50. How many cookies must it sell to break-even on a financial basis? Multiple Choice 100,000 300,000 400,000 200,000 250,000Steel drums manufacturer incurs a yearly operating cost of P 200,000. Each drum manufactured cost P 160 and sells for P 300. A machine use for the production has a first cost of P 20,000 and a salvage value of P 2,000 after producing 1,000 units. What is the break even number of units per year? Choices: a. 1,452 b. 1,510c. 1,386d. 1,640 Show solution. Do not use excel. Ans: dA business received an offer from an exporter for 10,000 units of product at $17.50 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data is available: Domestic unit sales price $20 Unit manufacturing costs: Variable 11 Fixed 1 What is the amount of gain or loss from acceptance of the offer? a $65,000 gain b $50,000 loss c $30,000 loss d $20,000 loss
- Q1. Zeal Corporation is thinking about the dropping of its product Z. Sales of the product total Rs.400,000 per year; variable expenses total Rs. 270,000 per year. Fixed expenses charged to the product total Rs. 150,000 per year. The company estimates that Rs. 70,000 of these fixed expenses are not avoidable even if the product is dropped. If Product Z is dropped, what will be the net increase or decrease in profit of the company?1. A company uses 1,500 units of Zeron per year. Each unit has an invoice cost of P222, including shipping costs. Because of the volatile nature of Zeron, it costs P860 for liability insurance on each shipment. The costs of carrying the inventory amount to P65 per item per year exclusive of a 20 percent cost of capital. Other order costs amounts to P18 per order. At present, the company orders 250 units at a time. What is the annual cost of the company's current order policy? 2. Summer Company has annual fixed costs of P90,000. This year, it recorded profit of P30,000 which is 10% of its sales. In the coming year, sales volume is expected to increase by P200,000 and the profit ratio will go up to 22%. What is Summer's break even sales ratio in the coming year? 3. Corporation C is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for P133.60 per unit.…NUBD wishes to market a new product for P1.50 per unit. Fixed costs to manufacture this product are P100,000 for less than 500,000 units and P150,000 for 500,000 units or more. The contribution margin ratio is 20%. How many units must be sold to realize net income from this product of P100,000? A. 333,333 B. 500,000 C. 666,667 D. 833,333
- Choose the correct letter of answer Sela Company, sells Product R for P5 per unit. The fixed costs are P200,000, and the variable costs are 45% of the selling price. The sales in pesos required for Canary to realize a net profit of 12% of sales is: *a. P209,302b. P 55,814c. P465,116 d. none of the aboveA business received an offer from an exporter for 10,000 units of product at a special price of $15.50 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $21 Unit manufacturing costs: Variable 12 Fixed 5 What is the amount of the gain or loss from acceptance of the offer? a. $8,000 loss b. $15,000 loss c. $35,000 gain d. $30,000 gainThe table Top Model corp. produces three products, Tic, Tac, Toc. The owner desires to reduce production load to only one product lien due to the prolonged absence of the production manager. Depreciation expense amounts to P600,000 annually. Other fixed operating expenses amount to P660,000 per year. Which product must be retained and what is the opportunity cost of selecting such product line?