At present the manufacturing plant of laksiri Ltd is operating at 50% of its capacity. The following details are related to plant.   Rs. Variable cost (Per Unit) 12 Selling Price(Per Unit) 14 Total Fixed cost 45,000 Present Production 20000 units If an exporter offers to bye 10,000 units per month at the rate of Rs.13 per unit Should Laksiry Ltd. accept this offer? Confirm your answer with requird calculations.

Q: Relay Corporation manufactures batons. Relay can manufacture 300,000 batons a year at a variable…

A: Variable cost per unit = Total Variable cost / No. of units = $750,000 / 300,000  = $2.50 per unit

Q: A company produces mineral water. Based on the projected annual sales of 40,000 bottles of mineral…

A: Cost accounting is the process of recording the cost of each process of production in order to…

Q: What is the breakeven point in units of production if the selling price per unit is Php40.

A: Given: Fixed cost = $100,000            Variable cost = $140,000             Net sales = $280,000

Q: BBB Company has capacity to produce 150,000 units a year and sell it for $96 each. The costs of…

A: Given that: Number of units = 150,000 units Selling price per unit = $96 per unit

Q: Based on the facts of Easy Problems Corp. if fixed costs will increase by Php 20,000.00, the break…

A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…

Q: The Doral Company manufactures and sells pens. Currently , 5 , 000 , 000 units are sold per year at…

A: Breakeven point in revenue means the sales made to cover entire fixed costs and earn neither profit…

Q: The selling price of Product Y is set at $1,200 for each unit and sales for the coming year are…

A: Introduction:- Calculation of target profit as follows:- Target profit =Investment x 40%

Q: he Falling Snow Company is considering production of a lighted world globe that the company would…

A: Given, variable cost per unit = $62 Total fixed cost = $240,000 Markup = 0.30

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: 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: Spring Manufacturing sold 610,000 units of its product for $98 per unit in 2019. Variable cost per…

A: Contribution margin = Sales - Variable costs Operating income = Contribution margin  - Fixed costs

Q: A company that manufactures and sells one single product is currently operating at 85% of full…

A: Operating full capacity = Currently no. of units producing / % capacity operating = 102000 units /…

Q: The cost of producing a small transistor radio set consists of P22.00 for labor and P36.00 for…

A: Cost of Producing one unit = labor cost + material cost + variable cost Cost of Producing one P22 +…

Q: For XYZ Company , how many units of their product would have to be sold to yield a target operating…

A: Contribution margin per unit = sales - variable costs = 60 - 50 = $10 per unit

Q: Chambers Company has just gathered estimates forconducting a breakeven analysis for a new…

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

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 certain firm has the capacity to produce 650 000 units of a certain product per year. At present,…

A: Capactity - 6,50,000 units Operating capacity - 62% Annual Income PhP 41,95,000 Annual Fixed Costs -…

Q: A plant operation has fixed costs of $2,000,000 per year, and its output capacity is 100,000…

A: Break-even chart is the graphic presentation depicting the break-even point. It consists of fixed…

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: A.) The annual fixed costs for a plant are $200,000, and the variable costs are $240,000 at 70%…

A: Break even point is the level of production at which the costs of production equal the revenues…

Q: plant operation has fixed costs of ₱2,000,000 per year, and its output capacity is 100,000…

A:

Q: The firm provided the following data for the year: Selling price per unit- ₱40; Variable production…

A: let us put the sales commission in variable cost contribution margin = 40 - 15 - 5 = 20 total fixed…

Q: For XYZ Company, how many units of their product would have to be sold to yield a target operating…

A: In order to arrive at the sales required to be made for earning desired/ targeted amount of income,…

Q: The Price Company will produce 55,000 widgets next year. Variable costs will equal 40 percent of…

A: Solution:- Earnings before interest and taxes (EBIT) means the operating income of an entity before…

Q: Process A has a fixed cost of $16,000 per year and a variable cost of $40 per unit. For process B, 5…

A: We have been given that ,  For process A   Fixed costs = $16,000 variable costs = $40 / unit   For…

Q: Drape Corp. would like to market a new product at a selling price of P15 per unit.  Fixed costs for…

A: Contribution margin per unit = P15 x 35% = P5.25

Q: The cost of producing a small transistor radio set consists of P22.00 for labor and P36.00 for…

A: A Break-even point is a point where a company's revenues and expenses were equal within a specific…

Q: Ratchet Ltd expects to sell 30,000 units this year. The selling price is set at $25 per unit. The…

A: Cost volume profit analysis is useful to find out the different sales volume on the basis of…

Q: A company has the capacity of production of 80000 units and presently it sells 20000 units at Rs 100…

A: The current sales are given as 20,000 units at Rs100 each. As the price is reduced by Rs10, the…

Q: What is the fixed cost per unit at the break-even point?

A: Information Provided: Production units = 8000 Selling price = 1.50P Fixed costs = 2800P Variable…

Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…

A: The Calculation of Profit is as follows: Contribution = Sales - Variable Costs…

Q: Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the…

A: Pounds per sack = 100 lb   Week by week interest = 100,000 lb   d = Wkly intt for sacks =…

Q: The following are data from a production, calculate; The Break-even point in tenns of sales value…

A: In Marginal Costing break-even analysis technique is used to ascertain…

Q: The fixed cost at Harley motors are $1M annually. The main product has a revenue of $9.90 per unit…

A: Net profit or loss can be calculated by deducting fixed costs and variable costs from the sales…

Q: For XYZ Company, how many units of their product would have to be sold to yield a target operating…

A: Formula Contribution per unit = Sale price per unit - Variable cost per unit Units sold at Target…

Q: Harrison Co. expects to sell 200,000 units of its product next year, which would generate total…

A:

Q: The selling of a product has been set at $300 per unit , and at that price the company expects to…

A: The calculation of target profit has been made as follows: Target profit=Total investment×Required…

Q: During a slack period, a manufacturer can sell 3000 articles per month at a price of $1.20 each. A…

A: Following are the given inputs Particulars Amount in $ Per Item Sales (3000 * 12) 36,000 $ 1.2…

Q: For XYZ Company, how many units of their product would have to be sold to yield a target operating…

A: Formula: Required units = [ ( Fixed cost + Target profit ) / Contribution margin per unit ]…

Q: Golden Corporation contemplates to market a new product. Estimated fixed costs is P1,000,000. The…

A: The contribution margin is calculated y deducting the variable cost from the net sales of the…

Q: Company XYZ is planning to sell 20,000 units at a price of $5 per unit during the month of December.…

A: Following is the answer to given question

Q: ABC Ltd produces a single product. The selling price is OMR 50 a unit and the variable costs is OMR…

A: The entity can achieve its target profit of OMR 10,000 by selling a sufficient number of units on…

Q: Process A has a fixed cost of $160,000 per year and a variable cost of $50 per unit. For Process B,…

A:

Q: What will be the break-even point in unit and amount of the Ceeneet Incorporated if they produce…

A: Break-even point (units) =Fixed costs/Contribution per unit Given, Selling price= Php 50 Variable…

Q: The selling price of a product has been set at $300 per unit, and at that price the company expects…

A: Target costing is one of costing technique in which target costs are being determined on the basis…

Q: A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost…

A: The marginal costing is the one that is widely used by the management to determine the cost incurred…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.