Calculate the profitability of the following proposal using Average rate of return (ARR) method Proposal I Automatic machine Cost OMR 420000 Estimated life 6.5 years Estimated sales P.A OMR 175000 Cost : Material OMR 60000 Labour OMR 22000 Variable overheads OMR 14000
Q: If variable cost per unit 5.5, initial fixed cost OMR 28000 and unit produces and sold 28000 units…
A: Total variable costs = total units produced x variable costs per unit = (28000+16500)*5.5 = OMR…
Q: The following price and cost data are given for Company E: Selling price per unit P25.00, Variable…
A: Formula: Break even point = Fixed cost / ( Selling price per unit - variable cost per unit )
Q: please solve the sub-parts to be solved. thanks Ziggy Creations makes and sells a single product.…
A: The contribution margin is calculated as difference between sales and variable costs.
Q: If selling price $300 per unit Variable cost $250 per unit…
A: Formula: Contribution margin = Sales - variable cost
Q: Calculate the profitability of the following proposal using Return on investment method Proposal I…
A: Return on investment: It is a financial performance measure that evaluates the profitability of a…
Q: Calculate the profitability of the following proposal using Return on investment method Proposal I…
A: Net income = sales - material - labor cost - variable overhead =160000 - 60000 - 22000 - 14000 =…
Q: An unfinished desk is produced for $34.60 and sold for $64.65. A finished desk can be sold for…
A: Differential Analysis: Differential analysis refers to the analysis of differential revenue that…
Q: YEAR CONVEYOR FORKLIFT (S150,000) (S60,000) (33,000) (48,000) 2 (33,000) (48,000) 3 (33,000)…
A: a. Calculation of IRR of each alternative is not possible to calculate because the cash inflow is…
Q: E4 Location Breakeven Analysis (also known as cost-volume analysis) is a technique used to make an…
A: Particulars A B C a. Expected Volume in Units (per year) 2500 2500 2500 Rs Rs Rs b.…
Q: Bloom Company predicts it will incur fixed costs of $255,000 and earn income of $427,500 in the next…
A: Total dollar sales = Fixed costs plus pretax income / Contribution margin ratio Variable costs =…
Q: Example 1. Surge Electric uses 4000 toggle switches a year. Switches are priced as follows. 1 to…
A: Order quantity 1-499, = 816.4965809 Optimal quantity is not…
Q: Draw up a marginal cost statement on the basis that 12,000 units will be sold and calculate the net…
A: 1. Breakeven point is the point where there is no profit and loss. At this point the company has…
Q: Exercise 2-9
A: Product costs are the costs that are incurred by the company to manufacture a product that will be…
Q: Basic CVP Analysis – Using Goal Seek Determine the breakeven point for the Drill/Driver product…
A: As per our protocol we provide solution to the one question or to the first three sub-parts and you…
Q: Lazy Days Inc. (LDI), sells hammocks. Revenue and cost information is given below: Sales Price TL 30…
A: Contribution margin is the sales revenues over and above its variable costs. Contribution margin…
Q: hree lathes П, 12, äre av the following information. Information is expressed in terms of cost. If…
A: Step 1 First let us note down the 8% interest table : 4 years 6 years 12 years…
Q: Three mutually exclusive design alternatives are being considered. The estimated sales and cost data…
A: AW or Annual Worth of project shows equivalent annual benefits that will be generated from project…
Q: choose between two reiigerati pans. The two machines have the following investment and operating c…
A: Annual equivalent cost is very useful technique in the evaluation of machine and equipment.
Q: When the price =20000- 50(Demand), fixed cost3D$500 per month and variable cost =$1000 per unit, the…
A: This is a simple case of revenue maximisation thoery of economics. Which says that the revenue is…
Q: A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round…
A: A profit analysis table helps in identifying the cost points of a product and help in calculating…
Q: A company is uncertain how many units of a new product can be so each year. To determine its…
A: Rate of return is computed by dividing the net profit by the investment.
Q: Current Attempt in Progress Coronado Industries sells radios for $50 per unit. Th costs are $685000…
A: Compute variable cost per unit for new equipment as shown below:
Q: An unfinished desk is produced for $35.00 and sold for $65.60. A finished desk can be sold for…
A: Differential Analysis Sell Unfinished Desk (Alternative 1) or Process Further into Finished Desk…
Q: Trent PLLent Swifty Corporation sells a product for $50 per unit. The fixed costs are $930000 and…
A: The breakeven point in units has been calculated by total fixed cost divided by contribution per…
Q: Calculate the profitability of the following proposal using Return on investment method…
A: Return on investment can be calculated by using this equation Return on investment…
Q: Sales are 440000 OMR, variable cost = 110000 OMR, profit is 10000 OMR calculate fixed cost a.…
A: Sales = 440000 OMR Variable cost = 110000 OMR Profit = 10000 OMR
Q: onsider the following cost and pricing data of ABC Corp. on its Product X: Price: P120.00.per unit…
A: A cost function seems to be a function that predicts the cost which will be incurred at a given…
Q: Calculate selling price of new product; what-if questions; breakeven D&RCorp. has annual…
A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…
Q: A company has a choice between two machines with identical production capacity but different costs.…
A: Incremental IRR is the incremental rate of return a project generates. It is used to compare two…
Q: solve the followinng unit sold 10000 variable expense $0.07million contribution margin…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Reid Company is considering the production of a new product. The expected variable cost is $24 per…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: Without resorting computations what's the total contribution margin at break even point? sales…
A: Contribution margin: Difference between the sales and the variable costs is called contribution…
Q: Sohar Aluminium company produce a breakeven units of 35000 and a breakeven sales revenue of…
A: Formula: Margin of safety = Expected sales revenue - Break even sales revenue Deduction of break…
Q: Vaughn Manufacturing has the following costs when producing 100000 units: Variable costs $600000…
A: Manufacturing costs are the cost paid during the manufacturing of a good.Direct material, direct…
Q: A)
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: If Actual sales are OMR 600000, Total Fixed costs OMR 150000, Selling price per unit OMR 50, and…
A: Margin of safety sales means sales revenue over and above breakeven sales revenue. Margin of Safety…
Q: Define and compute the EOQ, and Total variable cost for the given information- Annual demand 5000…
A: Formula for economic order quantity: EOQ, is a formula used by companies to determine the best order…
Q: A company would like to determine various costs and points to aid them in deciding whether to expand…
A: P/V Ratio:-Profit volume ratio is the relationship between the contribution and Sales. The formula…
Q: Total Fixed cost is 60000 OMR Total Variable cost is 100000 OMR Calculate Total Cost Select one: O…
A:
Q: Consider the following table which summarizes data of two alternatives. First cost Annual return…
A: Rate of Return Method: it is the method of capital budgeting in which a rate is determined to find…
Q: The selling price of a component is 1.45 Riyal with a material cost of 0.8 Riyal. The cost of the…
A: The question is based on the concept of business accounting.
Q: The S Company provides you with the following information on its products: Unit selling price Unit…
A: Given, Selling price is P100 Variable cost and expense is P75 Fixed costs is P600,000 Note:…
Q: Consider the following cost and pricing data of ABC Corp. on its Product X: Price:…
A: Disclaimer: Since you have posted a question with multiple sub-parts, we will solve first three…
Q: Mars Company has the following information: Total Fixed cost OMR 25000 Selling price per unit OMR 40…
A: Margin of Safety is the difference between the current sales and the breakeven sales.
Q: a) CVP analysis help managers to take better decision. Justify with real life scenario.…
A: CM Ratio: It means the Cost-Margin ratio. It shows the difference between sales and the variable…
Proposal I Automatic machine Cost OMR 420000
Estimated life 6.5 years
Estimated sales P.A OMR 175000
Cost : Material OMR 60000
Labour OMR 22000
Variable overheads OMR 14000
Step by step
Solved in 3 steps
- Calculate the profitability of the following proposal using Average rate return (ARR) methodProposal IAutomatic machine Cost OMR 320000Estimated life4.5 yearsEstimated sales P.A 220000Cost : Material OMR 60000 Labour OMR 22000 Variable overheads OMR14000 a.16.53% b.3.19% c.4.62% d.All the options are wrongCalculate the profitability of the following proposal using Return on investment method Proposal I Automatic machine Cost 420000 Estimated life 6.5 years Estimated sales p.a 175000 Cost : Material 60000 Labor 22000 Variable overheads 14000 a. 16.53% b. All the options are wrong c. 3.42% d. 4.62%An engineer collected average cost and revenue data for Arenson’s FC1 handheld financial calculator.Fixed cost = $ 300,000 per yearCost per unit = $40Revenue per unit = $70 Show the sensitivity of profit to variation in revenue from $55 to $75 per unit using a $5 increment. Perform this analysis at two sales quantities: (1) the breakeven quantity for the collected data, and (2) 20% greater than this breakeven quantity. (Note: Be sure to use the original estimates for FC and cost per unit.)
- Suppose that a company expects the fo llowing financial resuJts from a project during its first year ope ration:• Sales revenue: $250.000• Variable costs: $80.000• Fixed costs: $50.000• Total unit produced and so ld: 1,000 units(a) Compute the contribution ma rgin pe rcentage.(b) Compute the brcakcven point in units sold.In the process of finding the optimum order quantity the following costs are obtained per order or per unit annually. Inspection Cost = SR 4 Cost of Interest = SR 4 Insurance Cost = SR 2 Administration Cost = SR 4 Obsolescence = SR 3 Depreciation Cost = SR 2 Breakage Cost = SR 2 Given that the annual Demand is 500,000. Number of order?Mowbot's management is evaluating new proposals for production machines from three companies: Brawn Up front cost Annual cost saving Life (years) $ $ Apex (150,000) $ 63,000 $ 4 (200,000) $ 81,000 $ Cameo (250,000)102,000 4 4 Use incremental present worth analysis to decide which alternative should be recommended. MARR is 18%.
- Consider the following cost and pricing data of ABC Corp. on its Product X:Price: P120.00.per unitProfit Contribution: P90.00Proposed additional Cost: P3 per unit (for quality improvement)Current Profits: P2.4 millionSales: 100,000 units. A. Assuming that average variable costs are constant at all output levels, findABC Corp.’s total cost function before the proposed change.B. Calculate the total cost function if the quality improvement is implemented. UNANSWERED SUB-PARTSC. Calculate ABC Corp.’s break-even output before and after the change, assuming it cannot increase its price.D. Calculate the increase in sales that would be necessary with the quality improvement to increase profits to P2.7 millionQuestion Description Company XYZ has a monthly rental amount of 2000 USD, credit payments(1200 per year), materials 30USD, Labor 70 USD, Unit selling price is 150$. Please find BEP andprepare a profit and loss statement. Going forward company also decided to look at theirproductivity from a multifactor perspective. To do so, CEO has determined his labor, capital,energy and material usage and has decided to use dollar as the common denominator. His totallabor hours are now 300 per day and will increase to 308 per day. His capital and energy costs willremain constant at $350 and $150 per day respectively. Material costs for 100 logs per day are$1000 and will remain the same. Because he pays an average of $10 per hour. a) calculate the productivity for current system and with professional buyer.b) Please prepare a flow diagram, process chart, activity chart and operations chart for a teacherteaching a class at FMS?Choose the correct letter of answer: The following price and cost data are given for Company E: Selling price per unit P25.00, Variable cost per unit P10.00 and Fixed Operating Costs P30,000.00. Calculate the break-even point and the the cash break-even point, assuming P5,000.00 of the firm's fixed cost is for depreciation. a. 500 units and 467 unitsb. 1000 units and 857 unitsc. 1500 units and 1287 unitsd. 2000 units and 1,667 unitse. 2500 units and 2187 units
- Exxarro Llimited is considering pricing and costing for the year ahead. The following data based on expected production and sales of 15 000 units are provided for analysis:Variable manufacturing costR1 185 000Fixed manufacturing costR510 000Sales commissionR5 per unit soldFixed administration costR130 000SalesR210 per unit Study the information provided above and answer the following questions independently:4.1 Calculate the break-even sales value. 4.2 Calculate the sales volume required to achieve a profit of R 800 000. 4.3 Suppose Exxaro Limited is considering a decrease of 10% per unit in the selling price of the product with the expectation that it would increase sales volume by 10%. Is this a good idea? Motivate your answer with relevant calculations.If selling price $300 per unit Variable cost $250 per unit Fixed cost $50000 Required: If selling price $300 per unit Variable cost $250 per unit Fixed cost $50000 Required: d) Calculate the Contribution/Sales Ratio of the product. e) Find the breakeven point in sales revenue. f) Calculate the sales revenue that is required to generate a profit of $40000.Problem Solving.Determine for what is asked. Show your solution legibly. Improper solution will not be credited. Consider the following cost and pricing data of ABC Corp. on its Product X:Price: P120.00.per unitProfit Contribution: P90.00 Proposed additional Cost: P3 per unit (for quality improvement)Current Profits: P2.4 millionSales: 100,000 units. A. Assuming that average variable costs are constant at all output levels, find ABC Corp.’s total cost function before the proposed change.B. Calculate the total cost function if the quality improvement is implemented.C. Calculate ABC Corp.’s break-even output before and after the change, assuming it cannot increase its price.D. Calculate the increase in sales that would be necessary with the quality improvement to increase profits to P2.7 million