Company XYZ produces and sells 4,000 units.at this level, the company is making a profit of $20,000 Assuming total fixed expenses of $1,000 and variable expenses per unit of $0.75, how much was the selling price per unit? а. 3 b. 6 С. 8 e. 4. 1. d.
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A: Lets understand the basics. For calculating units for the target profit, we need to use below…
Q: The NUBD Co. Sells Product A for P60 each. Variable costs are P36 per unit. Fixed costs are…
A: Contribution margin per unit = Sales value - variable cost = 60 - 36 = 24 per…
Q: Company XYZ produces and sells 40,000 units.at this level, the company is making a profit of…
A: Given that, Selling units = 40000. Fixed costs = $3000 Profit = $37000 Variable cost per unit = $2
Q: Lin Corporation has a single product whose selling price is $120 and whose variable expense is $80…
A:
Q: Beantown Baseball Company makes baseballs that sell for $13 per two-pack. Current annual production…
A: Degree of Operating Leverage shows ratio of contribution margin of the business with net operating…
Q: Company XYZ produces and sells 4,000 units.at this level, the company is making a profit of $10,000.…
A: Contribution margin per unit = Sales price per unit - Variable costs per unit Contribution margin =…
Q: Stewart Industries sells its finished product for $8.71per unit. Its fixed operating costs are…
A: Sales revenue: Sales revenue is defined as the amount that is earned by the company or entity by…
Q: ZEE Systems reported total sales of Rs. 204,000 at a price of Rs. 20 and per unit variable expenses…
A:
Q: Based on the above, how many units should the company sell to earn net income of $150,000? * O 3,700…
A: Unit Contribution Margin = Selling Price - Variable Cost Per Unit Units to be sold for target profit…
Q: Jasin Company projected operating income ( based on sales of 450,000 units ) for the coming year as…
A: The Cost-Volume-Profit analysis or CVP analysis is a method or technique used in cost accounting…
Q: Success Sdn Bhd sells lorries. During the current year, 100 lorries were sold resulting in RM820,000…
A: Solution: As per given - Success Sdn Bhd sells lorries. During the current year, 100 lorries were…
Q: Lin Corporation has a single product whose selling price is $120 per unit and whose variable expense…
A: Solution:- 1)Calculation of unit sales to attain target profit as follows:- Formula =(Fixed cost +…
Q: Frontier Corp. sells units for $45, has unit variable costs of $17, and fixed costs of $179,000.…
A: The contribution margin is calculated as difference between sales and variable costs.
Q: Prestige Ltd. produces 3 products and has fixed costs of RM363,000 a year. Other data for the year…
A: Breakeven point is that point of sales revenue at which business is only recovering its fixed costs…
Q: Bellevue Corporation sells a product for $310 per unit. The product's current sales are 14,200 units…
A: Margin of safety in units = 14,200 - 10,224 = 3,976
Q: Company XYZ produces and sells 40,000 units.at this level, the company is making a profit of…
A: Contribution margin = profit + fixed costs = $37000+4000 = $40,000
Q: Company XYZ made total sales revenue of $400,00 costs were $20,000. The variable selling and admir…
A: Ans. To get contribution margin, variable costs are deducted from sales amount. The variable selling…
Q: 2. A company had a loss of P3 per unit when sales were P40,000 units. When sales were P50,000 units,…
A: Contribution per unit = dp/dq Where dp = difference in profit or loss dq = difference in quantity…
Q: Shawn, Inc., sells a single product. The company's most recent income statement is given below.…
A: Answer a) Calculation of Contribution margin per unit Contribution margin per unit = Selling Price…
Q: Jasin Company projected operating income ( based on sales of 450,000 units ) for the coming year as…
A: The break even sales are the sales where business earns no profit no loss during the period. Break…
Q: Company XYZ produces and sells 4,000 units.at this level, the company is making a profit of $10,000.…
A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…
Q: A company manufactures and sells a single product whose selling price is P500 and whose variable…
A: Given that, Selling price = P500 Variable cost per unit = P300 Contribution per unit = Selling price…
Q: Lin Corporation has a single product whose selling price is $136 per unit and whose variable expense…
A: The calculation of contribution margin has been made as follows: Contribution margin per…
Q: Jasin Company projected operating income (based on sales of 450,000 units) for the coming year as…
A: Solution 1: Contribution margin ration is the proportion of contribution margin to sales. Same is…
Q: Lin Corporation has a single product whose selling price is $136 per unit and whose variable expense…
A: Formula: Contribution margin = Sales price - variable cost
Q: Carlota Corp. has the following income statement when 10,000 units were sold: Sales P20,000…
A: Break even point is the level of production at which the cost of production equal the revenues for a…
Q: The Xyden Company sells grips for P6 per unit. Variable costs are P2 per unit. Fixed costs are…
A: Formula: Contribution margin = Sales - variable cost Deduction of variable cost from sales derives…
Q: Saved Metet, Inc. has fed costs of $257,000, sales price of $54, and variable cost of $32 per unit…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
Q: Boo Company's current sales volume is 7,200 units with selling price of P15 per unit. The company…
A: Break even point = Fixed costs /Contribution margin per unit where, Contribution margin per unit =…
Q: 5. Andy Company, which produces and sells a single product, has provided the following data: Sales…
A: After operating expenses have been deducted, the amount of profit realised from a business's…
Q: Majid Corporation sells a product for $240 per unit. The product's current sales are 41,300 units…
A: Margin of safety = Current sales - Break even sales
Q: Canoncito Co. produced and sold 6,000 units for $12 per unit. The variable cost was $3 per unit, and…
A: BREAK-EVEN POINT:-Break-even point can be calculated by dividing the total fixed cost of…
Q: Prestige Ltd. produces 3 products and has fixed costs of RM363,000 a year Other data for the year…
A: The break even sales are the sales where business earns no profit no loss during the period.
Q: The Power Company sells its product at P15.00 per unit. The variable cost is P9.00 per unit. Total…
A: Break-even analysis is used in the production department to calculate the units to be sold to…
Q: Carbbean Company sold 100,000 gizmos at $12 each. Fixed costs were $300,000 and net income was…
A: As per the CVP income statement, the contribution margin is determined after deducting variable…
Q: XYZ Company's single product has a selling price of $15 per unit. The fixed expenses were $110,000.…
A: Profit per unit is the selling price minus variable cost per unit as reduced by fixed expenses
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A: Computation of income statement particulars Amount PHP per unit Sales per unit 45 - 0.08x…
Q: Company XYZ produces and sells 40,000 units.at this levelthe company is making a profit of $37,000 .…
A: The selling price is calculated by doing the reverse calculation. Total variable expenses and fixed…
Q: If the company would have sold a total of 12,000 units, consistent with CVP assumptions how many of…
A: As per CVP assumption, sales mix of the business will be same throughout the period.
Q: Abu Industries developed the following information for the product it sells: Sales price Variable…
A: solution CVP analysis means cost volume profit analysis In CVP analysis the analyst analyses the…
Q: From the following data, you are required to calculate 1) p/v ratio 2) break even sale with the…
A: Cost-volume-profit analysis is a technique which is used to determine the impact of costs and sales…
Q: $23,580. Required:
A: The target profit is the amount of profit that a company's managers expect to produce at the…
Q: Assume NUBD produced and sold 5,000 units. At this level of activity, it produced a profit of…
A: Sales = Cost + Profit Cost = (P2*5000) + (P4*5000) + P11,000 + P15,000 = P56,000 Profit = P19,000…
Q: Lin Corporation has a single product whose selling price is $135 per unit and whose variable expense…
A: Formula: Contribution margin =Selling Price - Variable cost Contribution margin Ratio = Selling…
Q: Gorilla, Co. provides two products, M and W. M accounts for 60 percent of total sales, variable cost…
A: Before finding the sales for targeted profit, we will first have to find the company level variable…
Q: Company XYZ produces and sells 40,000 units.at this level, the company is making a profit of…
A: The selling price per unit is determined by dividing the total sales amount by the total number of…
Q: Yusuf Company sells a product for $220 per unit. The variable cost is $170 per unit, and fixed costs…
A: Break even point in sales units = Fixed cost/Contribution margin per unit Contribution margin per…
Q: Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense…
A: Sales - Variable cost = Contribution margin Contribution margin - Fixed cost = Profit or (loss)…
Q: Simmons Corp. has a selling price of $11, variable costs of $2 per unit, and fixed costs of $24,852.…
A: Units Sold = (Net income + Fixed cost) / (Selling Price - Variable cost)
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- Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?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?Lotts 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.)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. $54,000If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
- 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.Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true? a. Sales will increase by 300,000. b. Overall operating income will increase by 2,600. c. Overall operating income will decrease by 25,000. d. Overall operating income will not change. e. Common fixed cost will decrease by 27,600.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.
- A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the contribution margin per unit? A. $30 B. $50 C. $80 D. $110Marlin 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.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.
