Blossom Company makes radios that sell for $40 each. For the coming year, management expects fixed costs to total $126,380 and variable costs to be $32 per unit. Compute the margin of safety ratio assuming actual sales are $890,000. (Round margin of safety ratio to 2 decimal places, e.g. 10.50.)
Q: Top-of-the-Line Company sells bicycles helmets and scooter helmets. The bicycle helmets are priced…
A: Combined sale mix will be calculated by dividing one product sale with total products sales in…
Q: Milden Company is a merchandiser that plans to sell 12,000 units during the next quarter at a…
A: Cost of goods sold has direct costs with production process of goods where it includes materials and…
Q: Disk City, Inc., is a retailer for digital video disks. The projected net income for the current…
A: As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the answer…
Q: Franklin Company, which produces and sells a small digital clock, bases its pricing strategy on a 35…
A: Contribution margin is computed by subtracting the variable cost of production from the sales price.
Q: Beauty Supplies Company manufactures and sells several ranges of artwork. The average revenue and…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Nytre Limited sells executive office chairs for a price of $195 each. The contribution margin ratio…
A: The targeted sales are calculated as sum of fixed cost and target profit divided by contribution…
Q: Disk City, Inc., is a retailer for digital video disks. The projected net income for the current…
A: As per the guidelines, only three subparts are allowed to be solved. Please resubmit the question.…
Q: Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: For a table manufacturing company, selling price for a table is $174.00 per Unit, Variable cost is…
A: Break-even analysis is a technique used widely by production management. It helps to determine the…
Q: Derby Phones is considering the introduction of a new model of headphones with the following price…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: Bernard Tires sells tires to car dealerships for an average of $30 each. The variable cost of each…
A: Margin of Safety = Current sales - Break even Break even = Fixed Cost/ Sales - Variable cost
Q: Thornbrough Corporation produces and sells a single product with the following characteristics:…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 1. What is the break-even level in tires? 2. What is the margin of safety, assuming sales total…
A: Comment: The Question is Multipart, so SME will answer only three subparts as per Bartleby…
Q: The DeWayne Company sells binoculars for $150 per unit. The variable cost is $100 per unit while the…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Pacific Electronics manufactures and sells two types of lamps: floor lamps and desk lamps. Floor…
A: In This Numerical has covered the concept of Cost Volume Profit Analysis.
Q: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90.…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: Farrow Co. expects to sell 200,000 units of its product in the next period with the following…
A: Incremental cost is over and above current cost. Overhead cost for additional units $200000*16℅ =…
Q: Campbell Company, which produces and sells a small digital clock, bases its pricing strategy on a 20…
A: Differential analysis or incremental analysis is an accounting technique used by management. In…
Q: "Disk City, Inc., is a retailer for digital video disks. The projected net income for…
A: Variable Cost per disk = Purchase Price per disk + Handling Cost per disk Contribution Margin per…
Q: Auto Tires, Inc. sells tires to service stations for an average of $45 each. The variable costs of…
A: Breakeven sales point means point of level at which business is only recovering its fixed costs and…
Q: Farrow Co. expects to sell 300,000 units of its product in the next period with the following…
A: Incremental income is the monetary gain or loss that results from a specific administrative…
Q: Jaime Ltd manufactures and sells a small electric product to order for the computer industry. The…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: Sanchez & Ryan, Inc, sells a single product. This year, 20,000 units were sold resulting in $130,000…
A: ($130,000 / 20,000 units) - ($60,000 / 20,000 units) = $6.5 - $3 = $3.50
Q: Suppose that Head-First Company now sells both bicycle helmets and motorcycle helmets. The bicycle…
A: Part 1:
Q: Perry, Inc. manufactures metal stampings for automobiles: stick shifts and trim kits. Fixed costs…
A: Contribution margin per unit = Sales per unit - Variable cost per unit Break-even point in…
Q: Bando Corp. sells a single part for a price of $40 per unit. The variable costs of the part are $15…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: MERC Company makes small bags that sell Php 20.00 each. For coming year, management expects fixed…
A: Contribution margin per unit: The excess of the selling price over the variable costs is known as…
Q: A company estimates that it can sell 4,000 units each month of its product if it prices each unit at…
A: When 4000 units are sold: Sale Value = 4000*80 = $3,20,000 Total Cost = Fixed Cost + Unit Production…
Q: Ibra Company makes radios that sell for OMR 30 each. For the coming year, management expects fixed…
A: Answer- Breakeven Sales in Units = Total Fixed Cost / Contribution Margin Per Unit Breakeven…
Q: Jaime Ltd manufactures and sells a small electric product to order for the computer industry. The…
A: No. of units produced = No. of units sold + Increase in ending units = 108000 + 18000 = 126,000…
Q: The fixed costs of Anton, Inc. are $354,000 and the total variable costs for its only product are…
A: Calculation of monthly income: Sales (5700 x $140) 798,000 Less: Variable Costs (45% of $140 x…
Q: Jaime Ltd manufactures and sells a small electric product to order for the computer industry. The…
A: The income statement should be prepared to record revenue and expenses for the period and find the…
Q: Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit…
A: Margin of safety is the difference between total sales value and breakeven sales value. Here, we can…
Q: Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of…
A: I am answering the first three sub-parts of the question as per bartleby guidelines. Please…
Q: Last year, Bread City had sales of 70,000 loaves resulting in revenues of $350,000. Variable costs…
A: Solution:- Profit means the surplus of revenue over the incurred costs.
Q: eather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit.…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Blossom Company makes radios that sell for $40 each. For the coming year, management expects fixed…
A: Solution: Contribution margin ration = Contribution margin / Sales price = (40 - 32) / 40 = 8/40 =…
Q: Robeson Company estimates it will produce and sell 3,000 units next month. Data on costs follows:…
A: Contribution margin per unit = Selling price - Variable costs per unit Breakeven in units = Fixed…
Q: Alex Miller, Inc., sells car batteries to service stations for an average of $30 each. The variable…
A: Break even point can be defined as the production level at which the manufacturing costs is equal to…
Q: Disk City, Inc., is a retailer for digital video disks. The projected net income for the current…
A: Formula: Break even point in units = Fixed cost / unit Contribution margin
Q: Careless Company manufactures and sells sunglasses. Price and cost data are as follows: Selling…
A: Break even units = Fixed Cost / Contribution Margin per unit
Q: : By what percentage will profits increase with this change in sales volume? What is the theory…
A:
Q: 108,000 units next year. J
A: Given: Selling price 654.00 Direct materials 216.00 Direct labour 108.00 Production overhead 54.00…
Q: 1. Prepare a contribution format income statement for the next quarter. 2. Prepare a traditional…
A:
Q: Jaime Ltd manufactures and sells a small electric product to order for the computer industry. The…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: Garcia Co. sells snowboards. Each snowboard requires direct materials of $100, direct labor of $30,…
A: The Numerical has covered the concept of calculation of Selling Price When we need to compute the…
Q: : Selling Price $ 60 Variable manufacturing cost $ 33 Fixed manufacturing cost $ 250,000 per…
A: The cost volume profit analysis of a manufacturing company is a critical activity of management.…
Q: Tiktok Company distributes a lightweight lawn chair that sell for P150 per unit. Variable costs are…
A: Number of additional units sold = Increase in sales/selling price
Compute the margin of safety ratio assuming actual sales are $890,000. (Round margin of safety ratio to 2 decimal places, e.g. 10.50.)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.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.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.
- 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 245,000Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)
- 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?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?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. 11,200
- Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shell. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320.000. However, the $130 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order? A. Profits will decrease by $1,200. B. Profits will increase by $31,200. C. Profits will increase by $600. D. Profits will increase by $7,200.Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)