C. $1,060,000.D. $1,080,000.PROBLEM 4The following is Unknown Corporation's contribution format income statement for last month:SalesP 2,000,000Variable Costs1.400.000Contribution Margin600,000Fixed Costs360,000Profit240,000The company has no beginning or ending inventories. A total of 40,000 units were producedand sold last month.Required: (1 point for each requirement)Compute for the following items:a. Selling price per unitb. Variable cost per unit2nd semester AY 2021- 2022Page 5 of 6C.Contribution margin per unitd. Contribution margin ratioe. Breakeven point in pesosf. Breakeven point in unit salesg.If breakeven sales in units will increase by 10,000 units, how much will be theincrease/decrease in profits?h. If breakeven sales in units will decrease by 4,000 units, how much will be theincrease/decrease in profits?

The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…

D. $1,080,000. PROBLEM 4 The following is Unknown Corporation's contribution format income statement for last month: Sales P 2,000,000 Variable Costs 1.400,000 Contribution Margin 600,000 Fixed Costs 360,000 Profit 240,000

D. $1,080,000. PROBLEM 4 The following is Unknown Corporation's contribution format income statement for last month: Sales P 2,000,000 Variable Costs 1.400,000 Contribution Margin 600,000 Fixed Costs 360,000 Profit 240,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.2.3P

See similar textbooks

Related questions

Q: The minimum transfer price for a selling division with excess capacity to accommodate the transfer o...

A: The lower limit is the lowest price that the buyer can negotiate. The transfer price shoul...

Q: QS 12-1 Transaction classification by activity LO C1 Classify the following cash flows as either Ope...

A: Solution:- Classification of Cash flows as either Operating, Investing, or financing activities by a...

Q: Freshmart Inc. began operations last year when it produced and sold the same nuber of units. This ye...

A: Fixed overhead cost for 750 units = ($30,000 / 1,000) x 750 = $22,500

Q: A, B and C are solidary debtors for the amount of P45,000 from F. Mr. B has already paid P20,000 to ...

A: Solidarity debtors means where one or more of several debtors are liable to pay whole amount. And on...

Q: Problem 5-4 (IAA) On January 1, 2021, Lyka Company issued 12% bonds payable with face amount of P4,0...

A: bonds are considered to be debt instrument of the company whose payment are needed to be made by the...

Q: Which of the two offers, A or B, yields the lower price?

A: Let's analyze both the offers one by one to find out which offer yield the lower price Offer A. Tota...

Q: a. Determine the number of days past due for each of the preceding accounts as of July 31. If an acc...

A: In this question, we will Determine: 1)The number of days past due for each of the preceding account...

Q: Southland Company Is preparing a cash budget for August. The company has $18,100 cash at the beginni...

A: The cash budget is prepared to estimate the requirements for cash during the period.

Q: We are considering the purchase of a $560,000 computed based inventory management system. It is in c...

A: Business organizations are required to charge the depreciation expense so that the assets are shown ...

Q: Multiple Company had the following liabilities on December 31, 2021. How much should be reported as ...

A: Current liabilities are those short-term liability which is paid within the duration of one year. It...

Q: Jay Banning, CEO and a major stockholder of Banning Incorporated, was unhappy with its operating res...

A: The practice of reviewing your project's financial performance is known as cost variance. The cost v...

Q: Data concerning Dorazio Corporation's single product appear below: Percent of Per Unit Sales Selling...

A: Solution: Contribution margin from increased sales units and loss of contribution margin on existing...

Q: ! Required information [The following information applies to the questions displayed below.] In 2021...

A: Opportunity tax credit is tax credit which helps to pay education expenses for 4 years after high s...

Q: Super Pharma Company had the following transactions: 1. Issued capital stock for $935,000. 2. Purcha...

A: The T-accounts are prepared as posting of journal entries to the specific accounts.

Q: You have been engaged to review the financial statements of Flint Corporation. In the course of your...

A: Solution:- Preparation of the necessary correcting entries, assuming that Flint uses a calendar-year...

Q: Question text The relationship between the amount funded and the amount reported for pension expense...

A: In case of multiple questions are posted together, the first question is solved. Pension expense is ...

Q: The direct cost of each hotel guest at Seaview hotel is $15 per night. The hotel manager has estimat...

A: The manager should accept the offer only if it recovers the costs incurred.

Q: Tanek Corp's sales slumped badly in 2017. For the first time in its history, it operated at a loss. ...

A: The break even sales are the sales where business earns no profit no loss during the period.

Q: An analysis of the Marketable Securities control account of Fancher Products, Inc., shows the follow...

A: The cash flow statement is prepared to record the cash flow from various activities during the perio...

Q: C. Trial Balance D. Income Statement and E. Balance Sheet

A: Answer:

Q: Please send to my email add: Mhardzpurple@yahoo.com Name Date Email Add: CHAPTER 1 TEN-MINUTE QUIZ C...

A: The question is related to the Basic of Financial Reporting. Since you have asked multiple question...

Q: Indicate with a check mark whether each of the following would be a product cost or a period cost un...

A: Product cost is any cost incurred for the production of the products , thus all costs up to the time...

Q: A corporation creates a sinking fund in order to have $640,000 to replace some machinery in 10 years...

A: Excel formulas which are used for calculations:-

Q: Based on a predicted level of production and sales of 21,000 units, a company anticipates total vari...

A: Variable cost varies with production . Variable cost per unit remains same and total variable cost v...

Q: The Performing Arts Club at your school wants to build a music studio. The studio would be available...

A: Financing small projects require low investments. There are various ways to fund small projects i.e....

Q: For Year Endea vecember 31, 2019 $372,800 239,900 132,900 Sales Cost of goods sold Gross profit Oper...

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...

Q: shes to calculate a project's present worth with estimated costs of Php 1.69M now and Php 350,000 pe...

A: The answer has been mentioned below.

Q: The general ledger of AXM, Inc., provides the following information relating to purchases of merchan...

A: Cash payment to suppliers is the amount paid to the supplier of merchandise purchased on account. Gi...

Q: You are required show ALL supporting workings where necessary and state any assumption(s) made. Gre...

A: The question is related to Cost Volume Profit Analysis. The Sellling Price is calculated with the he...

Q: On January 1, 2016, Truffle Corp. issued 9% bonds in the face amount of P 5,000,000, which maature o...

A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...

Q: E9-6 (Algo) Computing and Recording Straight-Line Depreciation [LO 9-3] Yazzie Incorporated bought a...

A: Given, =A machine at the beginning of the year at a cost of $42,000. =The estimated useful life was ...

Q: Financial Accounting and Reporting, Advanced Financial Accounting and Reporting, Management Accounti...

A: The duties of a controller include assisting with the preparation of the operating budget, overseein...

Q: Indicate the effect that each transaction/event listed here will have on the financial ratio listed ...

A: Transaction/Event Explanation a. Purchased inventory on account. Purchases of inventory on accou...

Q: nation Debit

A: Lease liability refers to the form of obligation by which the borrower has to pay the desired intere...

Q: The following income statement and selected balance sheet account data are available for Treece, Ic....

A: The statement of cash flows generated using the indirect approach adjusts net income for changes in ...

Q: Which of the following statements is most correct? Select one: A. A company with a current ratio of ...

A: Solution: Current ratio is the liquidity ratio that reflects relation between current assets and cur...

Q: aroah Company purchased equipment that cost $3180000 on January 1, 2020. The entire cost was recorde...

A: Solution: Depreciation expense amount for the year should be recorded as an expense. However while a...

Q: Which of the following is not an administrative remedy available to the government?

A: Answer: C. Tax Avoidance

Q: Does the net income amount reported on the Balance Sheet always reflect the increase in cash during ...

Q: Accrued salaries payable of $98000 were not recorded at December 31, 2020. Office supplies on hand o...

A: Solution: Accounting errors are mistake that affects the results reported by financial reporting. It...

Q: Associates bought a machine at the beginning of the year at a cost of $20,500. The estimated useful ...

A: 1.Double-declining-balance Straight-line depreciation rate = 100%/5 years = 20% Double-declining dep...

Q: 9. the BIR is under the supervision of the: A. Department of Budget B. Bureau of Customs 10. Which o...

A: 9.Answer: C. Department of Finance. The Bureau of Internal Revenue (Filipino: Kawanihan ng Rentas In...

Q: Tony Corporation has a construction contract in progress as follows : Total contract price: $550 mil...

A: The question is related to the IFRS 15 "Revenue from Contracts with customers" or "Construction Con...

Q: Indicate the effect that each transaction/event listed here will have on the financial ratio listed ...

A: Introduction Financial ratios are used for the interpretation of the financial and results of the op...

Q: For instance, say the total cost of producing 100 units of a good is P200. The total cost of produci...

A: Marginal cost is the cost of producing additional units of a product.

Q: to the individual or company that 3. A security is issues it. to the person who buys it, but A) asse...

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...

Q: Government budgets prevent public officials from spending outside their budgetary authority, and the...

A: The government budget is a budget that is prepared in order to estimate the revenue and the expendit...

Q: n April 12, Hong Company agrees to accept a 60-day, 8%, $7,800 note from Indigo Company to extend th...

A: Notes payable is debited by $7,800 since notes payable is a liability and a decrease in liability is...

Q: Return on assets d. Current ratio e. Receivables turnover

A: Financial ratios: Financial ratios are performance measurement methods used by the company to Measur...

Q: On January 1, 2020, Blossom Limited had shares outstanding as follows: 5% cumulative preferred shar...

A: Earnings per share represent the value of earnings available for each share outstanding over the per...

Question

C. $1,060,000.
D. $1,080,000.
PROBLEM 4
The following is Unknown Corporation's contribution format income statement for last month:
Sales
P 2,000,000
Variable Costs
1.400.000
Contribution Margin
600,000
Fixed Costs
360,000
Profit
240,000
The company has no beginning or ending inventories. A total of 40,000 units were produced
and sold last month.
Required: (1 point for each requirement)
Compute for the following items:
a. Selling price per unit
b. Variable cost per unit
2nd semester AY 2021- 2022
Page 5 of 6
C.
Contribution margin per unit
d. Contribution margin ratio
e. Breakeven point in pesos
f. Breakeven point in unit sales
g.
If breakeven sales in units will increase by 10,000 units, how much will be the
increase/decrease in profits?
h. If breakeven sales in units will decrease by 4,000 units, how much will be the
increase/decrease in profits?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Requirement (a)

VIEW

Step 3 Requirement (b)

VIEW

Step 4 Requirement (c)

VIEW

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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. $54,000
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.
What is the cost of direct labor f the conversion costs are $330.000 and manufacturing overhead is $275,000? $55,000 $275,000 $330,000 $605,000
Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of $30,000, and invested assets of $600000. What is the return on investment for Division A? A. 20% B. 25% C. 33% D. 40%
A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per year for reworking products. What is a good estimate of non-value-added costs? a. 126,000 b. 70,000 c. 56,000 d. 130,000
Break-even sales under present and proposed conditions Kearney Company, operating at full capacity, sold 400,000 units at a price of $246.60 per unit during 20Y5. Its income statement for 20Y5 is as follows: The division of costs between fixed and variable is as follows: Management is considering a plant expansion program that will permit an increase of $8,631,000 (35.000 units at $246.60) in yearly sales. The expansion will increase fixed costs by $3,600,000 but will not affect the relationship between sales and variable costs. Instructions Determine for 20Y5 the total fixed costs and the total variable costs.
Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.
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. 11,200
A firm has 100,000 in direct materials costs, 50,000 in direct labor costs, and 80,000 in overhead. Which of the following is true? a. Prime costs are 150,000; conversion costs are 180,000. b. Prime costs are 130,000; conversion costs are 150,000. c. Prime costs are 150,000; conversion costs are 130,000. d. Prime costs are 180,000; conversion costs are 150,000.