Dave’s has total fixed costs of $45,000. If the company’s contribution margin is 50%, the income tax rate is 28% and the selling price of a box of Jax is $23, how many boxes of Jax would the company need to sell to produce a net income of $19,000?

Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit,…

A: Contribution margin is the price of the product deduct all the linked variable costs, results from…

Q: Green Corporation expects to sell 3,000 plants a month. Its operations manager estimated the…

A: Contribution required = P 15000/ P 3000 Contribution required = P5 per plant Variable cost per plant…

Q: If each sales rep earns a salary of €60,000 per year, whatsales are necessary to break even on the…

A: Break-Even Point: It refers to a point of production at which there is no profit no loss.

Q: A business has fixed costs of $6000 per month and the product sells for $200. The variable cost is…

A: Contribution margin is the difference between sales revenue and variable cost. Variable cost is the…

Q: Nytre Limited sells executive office chairs for a price of $195 each. The contribution margin ratio…

A: The targeted sales are calculated as sum of fixed cost and target profit divided by contribution…

Q: If National Co. has calculated that it needs to sell 20,000 units in order to earn an after-tax…

A: No. of units need to sell to earn desired profit = (Desired profit before tax + Fixed costs) /…

Q: Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs…

A: Margin of safety means the difference between the budget sales and breakeven sales. It means the…

Q: A company has total fixed costs of $200,000. Its product sells for $25 per unit and variable costs…

A: a. Calculate the number of units is required to achieve the after-tax income level. Working note:…

Q: A product sells for $295 per unit, and its variable costs per unit are $217. Total fixed costs are…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: Kareem Co. produces a single product that is sold for $85 per unit. If the variable costs per unit…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: If the company has a target profit of $15,000, how many units must be sold

A: Breakeven point: Breakeven point is the point at which the company makes no profit nor loss or it is…

Q: Yang Inc. produces only one product, berry baskets, which it sells for P72 each. Unit variable costs…

A: Operating income is the income generated from normal operations such as buying or selling of goods…

Q: The following annual information is for Bressler Corporation:   Product X Revenue per unit: $10.00…

A: Desired units = (Fixed cost + Net income /(1-tax rate))/Contribution margin per unit Total fixed…

Q: Barometers sell for $300 each. Variable costs are $200 per unit, fixed production costs are $2,000,…

A: Profit is the excess of revenue over cost. Profit can be found out by deducting cost price from…

Q: Elkins, a manufacturer of ice makers, realizes a cost of $250 for every unit it pro- duces. Its…

A: The conceptual formula used:

Q: Raven Company has a target of $70,100 pre-tax income. The contribution margin ratio is 32%. What…

A:

Q: Dream Enterprise wants to know how much it costs to make one (1) unit of their product and how much…

A: Answer 1) Calculation of Product’s total cost per unit Total Cost per unit = (Fixed Cost per month +…

Q: Jack’s Jax has total fixed costs of $25,000. If the company’s contribution margin is 60%, the income…

A: Given that, total fixed costs of $25,000 company’s contribution margin is 60%  the income tax rate…

Q: A furniture manufacturer has an annual overhead cost of P100,000 plus 20% of the sales in pesos.…

A: Let selling price be X. Sales will be 8000X. Variable cost per unit = Labor cost+Materials cost…

Q: Drape Corp. would like to market a new product at a selling price of P15 per unit.  Fixed costs for…

A: Contribution margin per unit = P15 x 35% = P5.25

Q: Jack’s Jax has total fixed costs of $25,000. If the company’s contribution margin is 60%, the income…

A: Calculate contribution margin per box:

Q: Frank Corporation manufactures a single product that has a selling price of S30.00 per unit. Fixed…

A: Formula used: Units to be sold to earn a target profit = ( Fixed cost + target profit ) / Unit…

Q: Olivian Company wants to earn $360,000 in net (after-tax) income next year. Its product is priced at…

A: As the question has more than 3 sub-parts, the first 3 subparts are answered as per guidelines. If…

Q: Marsh Motors sells 5,000 motors a year for $30 apiece. Variable costs are $8 per unit, and total…

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

Q: Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit…

A: Old variable expense per unit = $40 x 70% = $28

Q: 1.AA Corporation sells Product Rainbow for P5 per unit. The fixed costs are P210,000 and the…

A: The calculation of amount of sales if Pearl is to realise a profit of 10% on sales and the weekly…

Q: A company estimates that it can sell 4,000 units each month of its product if it prices each unit at…

A: When 4000 units are sold: Sale Value = 4000*80 = $3,20,000 Total Cost = Fixed Cost + Unit Production…

Q: Morris Company is the exclusive distributor for an automotive product that sells for P40 per unit…

A: Lets understand the basics. Break even point is a point at which no profit/no loss condition arise.…

Q: The National Inc. will produce 5,000 boxes of chocolates next year.  Variable costs is 60% of sales,…

A: The correct calculation of the above question is given in the following steps for your reference.

Q: It costs the American Automobile Company $8,000 to produce each automobile, and fixed costs (rent…

A: We need to answer following questions: a) How many cars should be produced each week to maximize…

Q: The following annual information is for Dexter Corporation:   Product A Revenue per unit: $20.00…

A: Formula: Unit contribution margin = Selling price - Variable cost per unit

Q: Oriole Cupcakes Co. is selling cupcakes for $10 for a box of one dozen. Oriole has fixed costs…

A:

Q: A company that manufactures ceramic cups has a fixed costs amounting to P270,000 per month Variable…

A: The following information is provided as follows:- Fixed cost per month = P270,000  Variable cost =…

Q: What is the break-even point for room service operations in terms of total room service revenue?…

A: Break even point in Revenue = Fixed cost / contribution margin ratio

Q: Jasmine Inc. makes a single product that it sells for $25 each.  Variable costs are $13 per unit and…

A: Contribution margin is sales revenue over and above it's variable costs. In order to earn target…

Q: Newman Company currently produces and sells 7,000 units of a product that has a contribution margin…

A: Target Profit: It refers to the desired amount of profit that a company expects to achieve by the…

Q: Krismuch Co. estimated that the company can sell 200,000 units of a product next period and earn a…

A: The price of the product per unit = P14.7 Refer step2 for explanation

Q: Jack’s Jax has total fixed costs of $25,000. If the company’s contribution margin is 60%, the income…

A: Given,

Q: Mars incorporated has presented the top selling chocolates - snicker, reeses and toblerone having a…

A: Break-even point in number of boxes  = 150,000 boxes

Q: Lin Corporation has a single product, whose selling price is $200 and whose variable cost is 60% of…

A: Required sale is to be calculated so that we can recover our variable cost , fixed cost and earn the…

Q: Chile's, Inc. currently produces and sells 4,000 units of a product that has a contribution margin…

A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…

Q: At a sales volume level of 2,250 units, National Co.’s contribution margin is one and one-half of…

A: Break even point = Fixed costs /Contribution margin per unit  where, Contribution margin per unit =…

Q: Mackler, Inc. sells a product with a contribution margin of $50 per unit. Fixed costs are $8,000 per…

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs…

A: Breakeven units is the units where at those units there is no loss or no profit. Breakeven in units…

Q: If selling price per unit is $30, variable costs per unit are $20, total fixed costs are $10,000,…

A: Net income - It is also known as net profit, it is the amount that is left after deducting all the…

Q: 3/Summer Company sells a product with a contribution margin ratio of 60%. Fixed costs are $650 per…

A: Required dollars sales = Total contribution margin required / Contribution margin per unit

Q: The fixed costs of Chun Company are $309,000 and the total variable costs for its only product are…

A: Contribution = Selling price - Variable cost Increase in contribution margin = 120 units × $100×55%…

Q: Chile's, Inc. currently produces and sells 4,000 units of a product that has a contribution margin…

A: Contribution margin per unit at Target Profit :-…

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.