Company XYZ produces and sells 4,000 units.at this level, the company is making a profit of $10,000. Assuming total fixed expenses of $3,000 and variable expenses per unit of $0.75, how much was the selling price per unit? O a. 8 b. 1 C. 6. d. 4 e. 3
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A: Given that, Selling units = 40000. Fixed costs = $3000 Profit = $37000 Variable cost per unit = $2
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Q: Company XYZ produces and sells 4,000 units.at this level, the company is making a profit of $10,000.…
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A: The income statement is prepared to find net income or losses incurred during the period.
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A:
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A: Unit Contribution Margin = Selling Price - Variable Cost Per Unit Units to be sold for target profit…
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A: Contribution margin = profit + fixed costs = $37000+4000 = $40,000
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A: Contribution per unit of A123=Sale per unit-Variable cost per unit=P 10-P10×70%=P3
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A: Answer a) Calculation of Contribution margin per unit Contribution margin per unit = Selling Price…
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- Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days. Required: 1. Calculate the reorder point, using Equation 20.3. 2. Graphically display the reorder point, where the vertical axis is inventory (units) and the horizontal axis is time (days). Show two replenishments, beginning at time zero with the economic order quantity in inventory. 3. What if the average usage per day of the part is 500 units but a daily maximum usage of 575 units is possible? What is the reorder point when this demand uncertainty exists?Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-17 Refer to the information for Barnard Company on the previous page. The total period expense is a. 276,000. b. 200,000. c. 76,000. d. 40,000. e. 36,000.In 19A, Starborne Inc. produces a machine for $675 and sells for $1,000. Cost of goods sold comprises of 35% of material, 40% of labour and remaining FOH. During this year, 1000 units have been sold. It is expected that next year, cost of material and labour will go up by 20% and 30% respectively. In order to be competitive, company is increasing the sale price per unit only by 10%, due to which it is expected to increase in volume by 15% also. You are required to prepare forecasted Income statement for 19B, if the prime cost is 60% of cost of goods sold.
- The following information pertain to questions 10 through 13. Hoopie Company sells a single product. The company’s sales and expenses for the recent month follow:Total Per unitSales P600,000 P40Less: Variable expenses 420,000_ 28_Contribution margin 180,000 P12Less: Fixed expenses 150,00__Net operating income P30,00010. What is the monthly break-even point in units sold?a. 12, 000 units b. 12,500 units c. 15,200 units d. 11,000 unitsAdiwele Ltd has a financial year end of 31 March. The entity manufactures Compact Discs for resale. The manufacturing cost per compact disc is R2 per unit. Finished units of the compact disc are sold at R2.5 per unit. On 31 March 2021, Adiwele Ltd had 100 500 units of compact discs in stock. To sell this products Adiwele Ltd will incur the following costs: Sales commission of 20 cents per unit, Additional designing costs of 25 cents per unit, Advertising and packaging costs of 23 cents per unit, Salaries for administrative staff of R6 000 per month. Adiwele Ltd measures inventory at lower of cost and net realisable value as per IAS 2, Inventories according to IFRS at year end. What is the value of the closing inventory on 31 March 2021 as per IAS 2? 1.251 250 2. 201 000 3. 208 035 4. 136 035 5. 244 2151. Jabu manufactures and sells Product X. During the most recent financial period, he sold 500 units at R750 each. There were no units of Product X in opening or closing inventory. Sales people are paid a commission of 5% on sales. The following additional information is available for this sales level:Fixed administrative cost per unit R90.00Total fixed manufacturing overhead R120 000Total fixed marketing cost R50 000Direct material usage per product 2 kgDirect material price per kilogram R14.50Total direct labour cost R47 500Required:All manufacturing cost increases with 10%. The marketing director estimates that sales volume will increase with 5% if an advertising campaign of R10 000 is undertaken. What is the operating income for Jabu? (e) Refer to above. Do you think that it is viable for Jabu to launch the advertising campaign? Select one of the following:No, it is not viable to launch the advertising campaign ORYes, it is viable to launch the advertising campaign
- Newham Corporation produces and sells two products. In the most recent month, Product R1OL had sales of $28,000 and variable expenses of $6,440. Product X96N had sales of $22,000 and variable expenses of $7,560. The fixed expenses of the entire company were S32,710. The break-even point for the entire company is closest to: A) $32,710 B) $45,431 C) $46,710 D) S17.290Choose the correct letter of answer In 20x2 the Cranky Processing Company had the following data coming from its income statement (in Pesos): Sales, P1,200,000; Variable costs: (a) Goods sold, P400,000 and (b) S&A Expenses, P100,000; Fixed costs: (a) Factory overhead, P110,000, and S&A Expenses, P80,000. Income tax rate is 15%. Determine the required peso sales to provide an after-tax net income of P150,000. a. P261,765b. P176,471c. P366,471d. P628,235The following information relates to the Magna Company for the upcoming year, based on 490,000 units. Amount Per Unit Sales $ 4,900,000 $ 10.00 Cost of goods sold 3,920,000 8.00 Gross margin 980,000 2.00 Operating expenses 367,500 0.75 Operating profits $ 612,500 $ 1.25 The cost of goods sold includes $1,470,000 of fixed manufacturing overhead; the operating expenses include $122,500 of fixed marketing expenses. A special order offering to buy 86,000 units for $9.30 per unit has been made to Magna. Fortunately, there will be no additional fixed expenses associated with the order and Magna has sufficient capacity to handle the order. How much will operating profits be increased if Magna accepts the special order?
- Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. Manufacturing costs Direct materials $ 30 per unit Direct labor $ 50 per unit Overhead costs Variable $ 20 per unit Fixed $ 8,400,000 (per year) Selling and administrative costs for the year Variable $ 750,000 Fixed $ 4,000,000 Production and sales for the year Units produced 105,000 units Units sold 75,000 units Sales price per unit $ 350 per unit 1. Prepare an income statement for the year using variable costing.2. Prepare an income statement for the year using absorption costing.The 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 placesCurrumbin Ltd sells a product for which they have a target profit of $30000. This product has variable costs of $4 per unit and total fixed costs of $45000. If 15000 units are to be sold, what should be the selling price? a. $2 b. $5 c. $3 d. $9 Arnold Company Pty Ltd provided these estimates for the three months ending 30 June 2020, its first period of operation. The beginning cash balance is $1,000. Cash receipts from sales $300 000 Cash payments for expenses 130 000 Payment for the purchase of new motor vehicle 15 000 Depreciation of motor vehicle 15 000 Repayment of a loan 100 000 What is the estimated cash balance at 30 June 2010? a. $55000 deficit b. $40000 surplus c. $56000 surplus d. $155000 surplus e. $50000 surplus Park Ltd produces financial calculators. The production capacity is 35,000 calculators, and the company is currently operating at 80% capacity. Variable…
