Calculate breakeven sales in DOLLARS, while achieving the ROS% target. (Rounding: penny.)
Q: a. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal…
A: Answer a. Contribution = Sales - Variable costs Contribution = $18,169.3 - ($6129.7 + $4756 + 40% of…
Q: What is the breakeven sales in dollars if : Total sales, $120,000; Total variable cost, $ 48,000;…
A: Contribution margin = Total sales - Total variable cost = 120,000 - 48,000 = $72,000
Q: A. Find the firm's breakeven output. B. If it wishes to have a monthly net income before taxes of…
A: a) Firm’s break-even point = Fixed cost / Contribution per unit Variable cost per unit = (130,000 +…
Q: 1. What is the present yearly net operating income or loss? 2. What is the present break-even point…
A:
Q: If a firms expected sales are $256,000 and its break-even sales are $193,000, what will the margin…
A: Margin of safety: The margin of safety indicates how much a company’s sales level can drop before it…
Q: Find Break-even point If sales is 20% above breakeven volume. find profit. Draw P/V graph for Sales…
A: Answer:
Q: If forcasted sales are $328,000 and forecasted break even sales are $302,500, wat is the margin of…
A: Margin of safety: It can be defined as a difference between the actual and estimated sales revenue.
Q: Consider the NPV sensitivity analysis reported in the following table (the numbers in the body of…
A: NPV sensitivity analysis is used while making decisions related to capital budgeting. It shows how…
Q: If NUBDCompany achieves its projections, what will be its degree of operating leverage? * Sample…
A: Contribution margin = (sales price - variable costs) x no. of units = (7-2)*60000 = P300000…
Q: I. What is the break- even point in dollar sales? J. How many units must be sold to achieve a…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 5. What is…
A: Break Even Sales=Fixed CostsSelling Price-Variable Cost per unit×Selling Price Margin of…
Q: a. Determine the company's break-even point (in sales value) and margin of safety (in sales value)…
A: BREAK-EVEN POINT (SALES VALUE) = TOTAL FIXED COSTS/CONTRIBUTION TO SALES RATIO MARGIN OF SAFETY =…
Q: Complete the following problems using the following ratios:…
A: Break even point is sales at which the operating income is zero that means fixed cost and variable…
Q: |The cost per unit of producing a product is 60 + 0.2x dollars, where x represents the number of…
A: Revenue: It is the income earned by a business in the course of its regular business activities.…
Q: Stellar Company has the following sales, variable cost, and fixed cost. If sales increase by $10,000…
A: Variable costs are those costs which changes directly with change in level of sales, but fixed costs…
Q: Based on the facts of Easy Problems Corp. If selling price will increase to Php 30.00, the break…
A: Answer - Calculation of Present Break Even Points in Units : Contribution = SP - Variable Cost =…
Q: Assuming that NUBD increased sales of Product X by 25 percent, what should the profit from Product X…
A: Solution: Contribution margin ratio = Contribution margin / sales = (P300,000 - P240,000) /…
Q: the P/V (profit volume) ratio of a company is 50% and tha margin of safety is 40% you are required…
A: Break even for a company is a place when it is having no loss no profit situation.
Q: If the gross profit rate on cost is 30%, what is the equivalent rate based on sales? (whole number…
A: Assume, Cost = 100 Then, Profit (100*30%) = 30 Sales (100+30) = 130
Q: he Rachel Company has sales of $820,000, and the break-even point in sales dollars is $672,400.…
A: Answer: Margin of Safety as a Percentage of Sales ((Current Sales - Break-Even Sales )/ Current…
Q: If sales are forecasted at 60,000 units and the break-even point is 48,000 units, what is the margin…
A: We need to calculate margin of safety in this question from the following given information : Sales…
Q: Quick Inc. has sales of $36,400,000, and the break-even point in sales dollars is $24,024,000.…
A: Margin of safety = Total sales - Break even sales = $36,400,000 - $24,024,000 = $12,376,000
Q: f. If the selling price increases by $4 per unit and the sales volume decreases by 200 units, what…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…
Q: From the following data, calculate: Fixed Expenses OMR 12000. Break-Even point OMR 20000. (a) P I…
A: Break-even point: The point where there is neither profit nor loss is called the break-even point.…
Q: Sales are either high or low, If sales are low, Pauline's contribution margin will amount to…
A: Probability that sales will be low = 100 - Probability that sales will be high = 100 - 70% = 30%
Q: 1.) what is the break-even in dollar sales? 2.) what is the margin of safety percentage? 3.) what…
A: Solution Note : As per the Q&A guideline we are required to answer the first three subparts only…
Q: If a company has three lots of products for sale, purchase 1 (earliest) for $17, purchase 2…
A: The cost pattern represents the trend of the cost price of the products.
Q: If a company wishes to extend credit standards in order to increase its sales and generate…
A: The question is related Management of Receivables and is related to evaluation of credit policy. The…
Q: a) What will be the coverage ratio if the sales price is reduced by 20%? b) What will now be the…
A: Break-even point is the point at which the company has its costs equivalent to the revenue means…
Q: If the margin of safety is 40% of sales, which are P400,000, the break-even point: a.is greater…
A: Break-Even point:- It is a point from which a company starts incurring profit and covering its cost,…
Q: If a company increases its sales price per unit for Product A, the new breakeven point will…
A: Break even point: At break even point the revenue of the company is equivalent to the total costs…
Q: Sisa Corporation has the following data: Selling price per unit Variable cost per unit.…
A: Current credit standard: A Selling price per unit 70 B Variable cost per unit 45 C Variable…
Q: a) Calculate the break-even point in units and in sales dollars (in total and per product) for ABC.…
A: Break-even point is the number of units sold or sales to be achieved in order to have no profit or…
Q: If the selling price per unit is $50, the variable expense per unit is $20, and total fixed expenses…
A: The Break-even point is the point where the company is able to cover all its costs but does not make…
Q: 1. Compute the breakeven point in (a) units and in (b) sales dollars. 2. How many units must be sold…
A: Formula is as follows: Break-even units = Fixed cost / (Price – Variable cost per…
Q: A firm uses simple linear regression to forecast the costs for its main product line. If fixed costs…
A: Solution:-The regression equation set up will be: y (total costs) = $235,000 + $10…
Q: How many units would NUBD Company need to sell to earn a profit after taxes of P15,000? * The…
A: Solution: Contribution margin per unit = Selling price - Variable costs = P7 - P2 = P5 per unit…
Q: A projected income statement of Hailwork’s company for the coming year follows: Sales $506300…
A: “Since you have asked multiple sub-parts, we will solve the first three sub-part for you. If you…
Q: Calculate the information below and use income statement A) PV ratio B)profit when sales are…
A: At break even point , Contribution margin - fixed expenses = 0 Contribution margin - 4000 = 0…
Q: Based on the facts of Easy Problems Corp. If variable costs per unit will go up by Php 5.00, the…
A: Breakeven sales is that level of sales revenue at which business is only recovering it's fixed costs…
Q: If Sales are $2,000,000 and the Break Even point is $1,500,000. What is the Margin of Safety…
A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…
Q: The P/v ratio of a company is 50% and margin of safety is 40%. If present sales is Rs 30,00,000 then…
A: We have the following information: P/V ratio: 50% Margin of Safety: 40% Present Sales: Rs.30,00,000
Q: According to the midpoint method, the price elasticity of demand between points A and B is…
A: Price Elasticity of Demand= change in Price/change in demand = 25/10 = 2.5 per unit
Q: eakeven sales in units will decrease by 4,000 units, how much will be the increase/decrease in…
A: The breakeven point is where the firm makes no profit or loss . In other words , the contribution…
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- Karens Quilts is considering the purchase of a new Long-arm Quilt Machine that will cost $17,500 and will increase her fixed costs by $119. What would happen if she purchased the new quilt machine to realize the variable cost savings of $5.00 per quilt, and what would happen if she raised her price by just $5.00? She feels confident that such a small price increase will not decrease the sales in units that will help her offset the increase in fixed costs. Given the following current prices how would the break-even in units and dollars change? Complete the monthly contribution margin income statement for each of these cases.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 245,000Variety Artisans has a bottleneck in their production that occurs within the engraving department. Arjun Naipul, the COO, is considering hiring an extra worker, whose salary will be $45,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,500 more units per year. Currently, the selling price per unit is $18 and the cost per unit is $5.85. Using the information provided, calculate the annual financial impact of hiring the extra worker.
- Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?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.Kylies Cookies is considering the purchase of a larger oven that will cost $2,200 and will increase her fixed costs by $59. What would happen if she purchased the new oven to realize the variable cost savings of $0.10 per cookie, and what would happen if she raised her price by just $0.20? She feels confident that such a small price increase will decrease the sales by only 25 units and may help her offset the increase in fixed costs. Given the following current prices how would the break-even in units and dollars change if she doesnt increase the selling price and if she does increase the selling price? Complete the monthly contribution margin income statement for each of these cases.
- Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $18,250 per year. The information they will use to consider these changes is shown here.Keleher Industries manufactures pet doors and sells them directly to the consumer via their web site. The marketing manager believes that if the company invests in new software, they will increase their sales by 10%. The new software will increase fixed costs by $400 per month. Prepare a forecasted contribution margin income statement for Keleher Industries reflecting the new software cost and associated increase in sales. The previous annual statement is as follows:Artisan Metalworks has a bottleneck in their production that occurs within the engraving department. Jamal Moore, the COO, is considering hiring an extra worker, whose salary will be $55,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,000 more units per year. Currently, the selling price per unit is $25 and the cost per unit is $7.85. Using the information provided, calculate the annual financial impact of hiring the extra worker.
- 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.Brahma Industries sells vinyl replacement windows to home improvement retailers nationwide. The national sales manager believes that if they invest an additional $25,000 in advertising, they would increase sales volume by 10,000 units. Prepare a forecasted contribution margin income statement for Brahma if they incur the additional advertising costs, using this information:Mike's Bikes is thinking about carrying a new line of adult tricycles. To carry this new line, Mike's Bikes would have to invest $27,210 in training and equipment. The new bikes would earn Mike's Bikes a 33% contribution margin as percent of selling price. Mike's Bikes will not take on the new line unless the company is assured of earning a 14% return on sales. Calculate breakeven sales in DOLLARS, while achieving the ROS% target. (Rounding: penny.)
