d) Calculate the Contribution Margin. e) Calculate the Break Even Point (in quantity). f) Calculate the Break Even Point (in Ringgit).
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A: CVP Chart: Cost Volume Chart (CVP) chart refers to a graphical representation of the cost-volume…
Q: Which of the following is called minimum point of production at which total cost is recovered:…
A: The margin of safety sales is calculated as difference between current sales and break even sales.
Q: True or false: The breakeven point in dollars can be computed by dividing the contribution margin…
A: Solution Concept Breakeven point is the point at which the contribution generated covers the fixed…
Q: The break-even point in units using the weighted-average contribution margin is:
A: 1. Both the Questions are same. 2. Break Even Point is the situation where a business earns no…
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A: Contribution margin per unit : The contribution margin is defined as the amount of which the sales…
Q: On the cost-volume-profit graph, the area between the total cost line and the sales line before the…
A: on the cost volume profit graph, the area between the total costline and the sales line before the…
Q: Which of the following is true about the changes in fixed cost? An increase in production will…
A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…
Q: cost which remains constant per unit
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A: The Break-even point indicates that total units are to be sold by the business entity to recover its…
Q: The intercept (straight line) on a graph of the linear cost function represents ....... cost
A: The cost function depicts the costs that will be incurred at various levels of activity Cost…
Q: Break-even value using the contribution margin ratio
A: (Since you have posted a multi-part question, we will solve the first three parts for you. For the…
Q: Which of the following describes the behavior of the fixed cost per unit?
A: Fixed cost is the cost which is doesnt change gets effects with the change in production which means…
Q: Calculate: a) The break-even level of production and sales b) The margin of safety
A: Given in the question: Per Desk Amount Direct Materials €3.00 Direct Labour…
Q: The total contribution margin is equivalent to the combined net profit and fixed costs. It can be…
A: Solution: The total contribution margin is equivalent to the combined net profit and fixed costs =…
Q: How would an Increase in total fixed costs affect the break-even point and the margin of safety?
A: The break even sales are the sales where business earns no profit no loss during the period.
Q: when the contribution margin ratio increases
A: Option A is wrong because break-even point decreases when the contribution margin ratio increases.…
Q: Which of the following best describes a fixed cost? A. Increase proportionately with output. B.…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The “fixed cost per unit function” may also be described as: a.an asymptote b.the total cost line…
A: Introduction:- Fixed costs, also known as indirect costs or overhead costs, are corporate expenses…
Q: The break-even point is that level of activity where a. total contribution margin equals the sum of…
A: At break-even point, there is no profit or no loss.
Q: a. What problems are associated with using the average cost per unit as a performance measure? b.…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: 1. The most likely strategy to reduce the break-even point would be to a. Increase both the fixed…
A: A Break-even point is a point at which a company is able to cover all its expenses with the present…
Q: decrease in variable cost
A: Break even point is the level of sales at which an entity begins to generate profit. Break even…
Q: Which of the following statements related to CVP chart is not true? O a. To calculate the total…
A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…
Q: On the cost-volume-profit graph, the area between the total cost line and the sales line after the…
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Q: On the cost-volume-profit graph, the area between the total cost line and the sales line before the…
A: This is part of break-even analysis.
Q: The term 'break even' point is defined as when: A. fixed costs equal total revenues B. variable…
A: The formula for calculating the break even point in units: Break Even Point (in Units)=Fixed…
Q: The break-even point is that level of activity where: Select one: a. sales revenue equals fixed…
A: Break Even point is a level where Profit is Zero
Q: Which of the following is a correct definition of the margin of safety? The excess of contribution…
A: Margin of safety: Margin of safety is the point at which company makes profit. In other words Margin…
Q: Answer the following: 1. The slope of line A is equal to the: a. fixed cost per unit. b. selling…
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Q: 1. Explain why a contribution margin per unit becomes profit per unit above the breakeven point.
A: "Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Hi, How do you calculated variable production cost per unit?
A: Answer:Variable production cost per unit is calculated by dividing Total variable production costs…
Q: How do you calculate Break-even Point? Select one: a. Fixed cost/ Contribution per unit b.…
A: Break-even point: The break-even point refers to a point where the total cost is equal to the total…
Q: ow do you find the break even point? without knowing the contribution margin per unit
A: Break-even point means the sale condition where no profit no loss incurred. Break-even point is…
Q: Which of the following is true about the hypothesis test of cost parameters? a) It indicates whether…
A: Hypothesis testing refers to the form of inferable statistics which allows us in making conclusions…
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A: Decrease in material cost result in Decrease in variable cost
Q: On a break-even chart, the fixed cost line is: Select one: a. parallel to the x-axis b. parallel to…
A: Break even chart shows the volume at which Total Sales is equals to total cost.
Q: Explain how the unit contribution margin can be used todetermine the unit sales required to break…
A: The contribution per unit indicates the value left after deducting the variable cost from the sale…
Q: 1. Which of the following formulas is used to calculate break-even units? 1. Fixed Costs + Unit…
A: The break even sales are the sales where business earns no profit no loss during the period.
Q: Which of the following expressions can be used to calculate brcak-even sales revenue with the…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: When variable costs increase and all other variables remain unchanged, the break-even point will: a.…
A: Break even point is that point at which business is recovering its fixed costs and variable costs.…
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- Question 1: Flora’s Flats produces comfortable and portable women’s shoes designed to be worn as a second pair of shoes after a formal event. The company has the following financial information: The company’s sales price is $20 per unit. The variable costs of producing flats is $6 per unit. The company expects to have fixed costs of $10,000 next year. The company expects to sell 1,000 pairs of flats next year. Assume no taxes. Required: Calculate the breakeven point in units. Calculate the breakeven point in dollars. How many units must the company sell to reach a target profit of $25,000? Prepare a budgeted contribution format income statement. Compute the margin of safety in both dollar and percentage terms. Compute the degree of operating leverage. If sales increase by 20% in the following year, how much would net income increase (use the degree of operating leverage to compute your answer).Identify the activity ratio of a computer shop is its Cost of Goods Sold is P12 million and the Average Inventory is P24 million. Analyze and interpret your answer. Compute the return on investment of AR Grocery Store if the net profit after taxes is P10 million and its total assets is P100 million. Analyze and interpret your answer.Consider the following information for a given business. Sale revenue =GHS40,000 VC per unit =GHS20 Activity level =1,000 to break even Required: 1. Determine the TFC 2. Express the contribution as a percentage of sale. 3. The company plans to sale 1,500 unit in the next period. What will be the percentage margin of safety (MoS) 4. What margin should the business employ for planning purposes? 5. What total profit should the business expect in order to achieve it's planned sales?
- 1. NewB Company sells bags with a selling price of P10,000 per bag and a variable cost of P4,000 per unit. NewB’s monthly fixed expense is P3,000,000. Let Q be the number of units manufactured Required: a. Construct the total cost function b. Construct the profit function c. Compute the contribution margin ratio. d. Compute total revenues needed to break even. e. Determine the breakeven point in units sold and sales in pesos. f. Compute required sales needed to achieve a target net income of₱1,500,000 in units sold and sales in pesos g. Determine margin of safety if current sales is P8,750,000A6) Finance XYZ is a retailer and sells 179,000 units per year. It purchases from a single supplier. Fixed costs per order are $868 and carrying cost is $11 per unit. How many units should XYZ purchase per order? That is, what is the Economic Order Quantity? Enter your answer rounded off to two decimal points. Margin for error: +/- 1Problem III. Fluffy Inc.’s income statement for 2020 on production and sales of 200,000 units is as follows: Revenues P 2,600,000 Cost of Goods Sold 1,600,000 Gross Margin 1,000,000 Marketing and distribution costs 1,150,000 Operating income (loss) (150,000) Fluffy’s fixed manufacturing costs were P500,000, and variable marketing and distribution costs were P4 per unit. What is Fluffy’s variable manufacturing costs per unit in 2020? What is Fluffy’s fixed marketing and distribute costs in 2020? The break-even point for the year 2020 in units is ________.
- Ma2. Q4 Bundoora Enterprises operates a single-product entity. Data relating to the product for 2020 were as follows: Annual Volume 45,000 Units Selling price per unit $65 Variable manufacturing cost per unit $25 Annual fixed manufacturing costs $155,000 Variable marketing and distribution costs per unit $15 Annual fixed non-manufacturing costs $445,000 a) Calculate and interpret the break-even in units for 2020. b) Calculate and interpret the margin of safety in both units and sales dollars. c) Calculate and interpret the profit achieved in 2020.d) Changes in marketing strategy are planned for 2021. This would increase variable marketing and distribution costs by $15 per unit and reduce fixed non-manufacturing costs by $100,000 per year. Calculate and interpret the units that would need to be sold in 2021 to achieve the same profit as in 2020.Identify the activity ratio of a computer shop is its Cost of Goods Sold is P12 million and the Average Inventory is P24 million.Show your solution, analyze and interpret your answer. Compute the return on asset of AR Grocery Store if the net profit after taxes is P10 million and its total assets is P100 million. Analyze and interpret your answer.Question 2 Style photo sells only one product. The statement of comprehensive income for 2021 is provided below: Sales 60,000 Less variable expenses -30,000 Contribution margin 30,000 Less fixed expenses -22,500 Net income 7,500 Required: Calculate with workings: The contribution margin ratio in percentage. Three breakeven point in total sales ringgits. The sales in RM if the company wants to achieve RM40,000 in net income.
- nkt.3 A company sells Yoohoo for $6 a can with unit sales of 10,000. If cost of goods is $40,000, what is total sales?QUESTION 1 Daffodils Florist bought 50 tulips at RM8 each and 20 lilies at RM12 each. The owner wanted a net profit of 18% based on cost and operating expenses of 10% based on the cost. a) Find the selling price for each tulip and lily. b) Find the gross profit for all flowers. c) Find the breakeven price for a tulip. d) Find the maximum percentage of markdown that can be offered without incurring any loss for tulips.Question 2 Style photo sells only one product. The statement of comprehensive income for 2021 is provided below: Sales 60,000 Less variable expenses -30,000 Contribution margin 30,000 Less fixed expenses -22,500 Net income 7,500 c. The sales in RM if the company wants to achieve RM40,000 in net income. d. The increase in net income if sales increase by RM50,000. e. The contribution margin in RM if there is no change in fixed and variable expenses