Compute Sales (in units) for Product Y at Breakeven
Q: What information is conveyed by a cost-volume-profit graph in addition to a company’s break-even…
A: Cost-volume-profit graph (CVP): Cost-volume-profit graph is a graphical representation of volume…
Q: Calculate the company's price earning ratio
A: Step 1 PE ratio is the ratio of earnings per share proportion to the market price per share.
Q: net sales is
A: Net Sales is the Revenue that is reported in the profit and loss account of the entity The formula…
Q: Define sales returns.
A: Sales: It is the goods and services sold by one company to their customers for a period.
Q: Sales data would be considered to be examples of __________ data. Multiple Choice ordinal interval…
A: Ratio data mean that quantitative data which can be written as percentage or ratio and can be better…
Q: Define days sales outstanding (DSO)
A: Days sales outstanding (DSO) It's a proportion of the normal number of days an organization should…
Q: Calculate the following: 1. The revenue per Mix of X and Z 2. The Contribution per mix 3. Average…
A: Under CVP Analysis, Variable Costs, Fixed Costs and Revenues are analyzed and the Impact on Profit…
Q: Describe the difference between the units sold approach to cvp analysis and the sales revenue…
A: Sales can be defined as the source of earning to the business entity out of the sale of inventory…
Q: Sort the following contribution margin income statement line items in the correct order from top…
A: Operating income is calculated after deducting the variable costs and fixed costs from the total…
Q: Sales commissions incurred based on units of product sold during a given period is an example of a…
A: The product costs are the cost that are incurred to produce a product directly or indirectly.
Q: the dollar amount of sales needed to achieve a target operating income is computed by what
A: The break even sales units are the sales where business earns no profit no loss.
Q: Identify each of the following costs as either a product cost (PROD) or a period cost (PER). Sales…
A: Concept Introduction: Product costs are the costs which are incurred only when a product is…
Q: Using the table below, create a line chart in which profit or loss is plotted on the Y-axis and…
A: Selling price per Unit= $16 Variable Cost per unit= $11 Fixed cost in total= $505000
Q: What would be the transfer price if Division X uses variable product cost plus markup? (round-off to…
A: Transfer pricing methodology is that process, by which prices are determined for transfer of product…
Q: Define return on sales ( or profit margin).
A: Financial ratios represent the accounting ratios computed by the management by using elements of…
Q: Explain percent of sales method.
A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…
Q: 1. Based on segment margin and average assets, compute the profit margin. 2. Based on segment…
A: Sales 9,000,000 Less: Variable costs 3,650,000 Contribution margin 5,350,000 Less: Direct…
Q: culate sales
A: Current month Ending Inventory Will be the next month beginning inventory.
Q: Name the accounting principle that requires inventories to be reported at sales price less…
A: Conservatism Principle This is the concept that you should record expenses and liabilities as soon…
Q: Cost-volume-profit analysis (CVP Analysis) requires management to classify all costs as either…
A: Cost volume profit analysis (CVP Analysis) helps the business entity in determining the impact on…
Q: How to get or compute the gross sales
A: Gross sales is presented in income statement.
Q: 1. What is the controllable margin of each product? 2. What is the segment margin ofeach product? 3.…
A: The income statement can be prepared in many ways according to the determination of the net income.…
Q: The revenue from the by-product is credited to the sales account. Process costs are apportioned in a…
A: Joint product: Joint product refers to those products that are produced by using single production…
Q: DIRECTION: COMPLETE THE FOLLOWING TABLE SELLING PRICE , COST, MARKUP, MARK-UP BASED ON SELLING…
A: Mark up refers to the difference between the selling price and cost price of the goods and services…
Q: How do we calculate cost of sales
A: The net sales are calculated as difference between sales and sales discounts.
Q: what is the segment margin of Department A and B?
A: Formula: Segment Margin= Segment Revenue- Segment Cost Segment Margin (%)= Segment Revenue-Segment…
Q: Using ABC, compute the cost of each unit of Product A? The following data are available for X Corp:
A: Unit Cost=Total CostUnits Completed
Q: the dollar amount of sales needed to achieve a target operating income is computed by
A: Target operating income is the desired income which the business wants to earn by selling products…
Q: Explain profit margin on sales
A: Profit margin on sales is calculated by using the following formula: Gross Profit/Sales Revenue*100…
Q: APPLY THE CONCEPTS: Target income (sales revenue) Another useful method for figuring out the type…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: Gross profit variance analysis can be used to study the effect of:" Changes in cost of goods sold on…
A: Gross profit variance refers to the variance that occurred to the amount of gross profit from the…
Q: How to calculate cost of sales
A: Introduction: Ending Inventory: The unsold inventory for the period is called Ending Inventory.…
Q: Calculate the cost of goods sold for each company
A: Cost of Goods Sold: Cost of Goods Sold refers to the cost price of the inventories sold. For…
Q: In a cost-volume-profit (CVP) graph, the intersection of the total sales line and the total expense…
A: The intersection of total sales line and total expense line means, Total sales = Total expense
Q: Question 1 On the cost-volume-profit graph, the area between the total cost line and the sales line…
A: Cost-volume-price (CVP) analysis is a way to find out how changes in variable and fixed costs affect…
Q: A company can use cost-volume-profit analysis to determine the level of sales required to earn a…
A: CVP Analysis Equation Profit = Revenue – Fixed Costs – Variable Costs
Q: In a cost sheet for a manufactured product, the profit percentage is typically added to this figure…
A: Cost sheet is defined as the statement being prepared to record various costs associated to the…
Q: Cost-to-retail ratio under the cost method is calculated: O A. After markdowns (net) and before…
A: Cost to Retail Ratio Inventory valuation is of the biggest task for every business. Firm to take…
Q: A component of operating efficiency and profitability, calculated by expressing net profit as a…
A: Profit is the amount earned by an entity after deducting all the outlays from the revenues.
Q: Summary for Cost Volume Profit Analysis
A: Cost Volume Profit Analysis: It is the technique of managerial accounting which examines how changes…
Q: Compute NET Profit margin ratio
A: Net profit margin ratio = Net Income/ Revenue * 100
Q: In a cost sheet for a manufactured product the profit perventage is typically added to the figure to…
A: Cost sheet is the sheet which is prepared by the company in order to know and show at each step the…
Q: On the Cost-Volume-Profit chart graph, the area below the Total Costs Line and above the Total…
A: The cost volume analysis is used to find break even sales or desired Revenues to earn desired…
Q: Match each of the following descriptions with the appropriate term. Clear All Plots only the…
A: Given, Match each of the following descriptions with the appropriate term.
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- 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. 11,200Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.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.)
- Pietro expects to produce 50,000 units and sell 49,300 units. Beginning inventory of finished goods is 42,500, and ending inventory of finished goods is expected to be 34,000. Required: 1. Prepare a statement of cost of goods sold in good form. 2. What if the beginning inventory of finished goods decreased by 5,000? What would be the effect on the cost of goods sold?A company produces two products. E and F in batches of 100 units. The production and cost data are: The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product. What is the differential profit from producing product E instead of product F for the year? A. $216,000 B. $204,000 C. $12,000 D. $54,000Craig Co. sells two products, A and B. Last year, Craig sold 14,000 units of A and 21,000 units of B. Related data are as follows: Product Unit SellingPrice Unit VariableCost Unit ContributionMargin A $110 $70 $40 B 70 50 20 What was Craig Co.'s unit contribution margin?
- Rusty Co. sells two products: X and Y. Last year, Rusty sold 5,000 units of X and 35,000 units of Y. Related data are as follows: Product Unit SellingPrice Unit VariableCost Unit ContributionMargin X $110 $70 $40 Y 70 50 20 For break-even analysis, the unit contribution margin of E was a.$60.00 b.$40.00 c.$22.50 d.$20.00The following is Cullumber Company’s income statement for the past year. Sales revenue $336,000 Cost of goods sold 134,400 Gross margin 201,600 Operating expenses 145,600 Operating income $56,000 If the company wants to sell a new product that costs $49 wholesale while keeping the same markup structure, what will be the price of the new product? (Use the gross margin percentage and round final answer to 2 decimal places, e.g. 25,124.25.) Price of the new product $enter the price of the new product in dollars rounded to 2 decimal placesPedaci Corporation produces and sells a single product. Data concerning that product appear below: Assume the company's monthly target profit is $15,000. The unit sales to attain that target profit is closest to: 3,212B. 5,265C. 8,235D. 5,571 Assume the company's monthly target profit is $17,000. The dollar sales to attain that target profit is closest to: $387,392B. $635,069C. $671,925D. $993,313
- Safari Co. sells two products: Orks and Zins. Last year, Safari sold 21,000 units of Orks and 14,000 units of Zins. Related data are as follows: Product Unit SellingPrice Unit VariableCost Unit ContributionMargin Orks $120 $80 $40 Zins 80 60 20 Note: "E" represents composite unit. Determine the following: a. Safari Co.'s sales mix Orks: fill in the blank 1 % Zins: fill in the blank 2 % b. Safari Co.'s unit selling price of E $fill in the blank 3 c. Safari Co.'s unit contribution margin of E $fill in the blank 4 d. Safari Co.'s break-even sales in units of E assuming that last year's fixed costs were $160,000 fill in the blank 5 units of ECarter Co. sells two products: Arks and Bins. Last year, Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are as follows: Product Unit SellingPrice Unit VariableCost Unit ContributionMargin Arks $120 $80 $40 Bins 80 60 20 Carter Co.'s variable cost of E was a.$64 b.$60 c.$140 d.$70Whirly Corporation’s most recent income statement is shown below:Total Per UnitSales (10,000 units) ..................... $350,000 $35.00Variable expenses ....................... 200,000 20.00Contribution margin ..................... 150,000 $15.00Fixed expenses ........................... 135,000Net operating income .................. $ 15,000Required:Prepare a new contribution format income statement under each of the following conditions (consider eachcase independently):1. The sales volume increases by 100 units.2. The sales volume decreases by 100 units.3. The sales volume is 9,000 units.