Determine Break-even probability: p= 0.95, present value of $1,260 for revenues, present value of $1,000 for costs, costs increased to $1,110, no possibility of repeat orders
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Determine Break-even probability:
p= 0.95, present value of $1,260 for revenues, present value of $1,000 for costs, costs increased to $1,110, no possibility of repeat orders
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- Determine expected profit: p= 0.95, present value of $1,260 for revenues, present value of $1,000 for costs, costs increased to $1,110, no possibility of repeat ordersSuppose Morrison Corp.’s breakeven point is revenues of $1,100,000. Fixed costs are $660,000. Q1. Compute the contribution margin percentage. Q2. Compute the selling price if variable costs are $16 per unit. Q3. Suppose 75,000 units are sold. Compute the margin of safety in units and dollars. Q4. What does this tell you about the risk of Morrison making a loss? What are the most likely reasons for this risk to increase?QUESTION : A Company is Making a Loss of Rs 100,000 and relevant information is as Follows, Sales Rs 120,000, Variable Cost Rs 80,000, Fixed Cost Rs 200,000, Loss Can be made either by increasing the Sales Price or by increasing the Sales Volume, What are Break Even Sales If, (a) Calculate Break Even Point in Units.(b) Calculate in terms of money Value.(c) Calculate in % of Estimated Capacity.
- CPL contemplates a change in technology that would reduce fixed costs from P 800,000 to P 700,000. However, the ratio of variable costs to sales will increase from 68% to 80%. What will happen to breakeven level of revenues? A. Decrease by P 301,470.50 B. Decrease by P 500,000 C. Decrease by P 1,812,500 D. Increase by P 1,000,000 Topic: Cost Volume ProfitA Company is Making a Loss of Rs 100,000 and relevant information is as Follows, Sales Rs 120,000, Variable Cost Rs 80,000, Fixed Cost Rs 200,000, Loss Can be made either by increasing the Sales Price or by increasing the Sales Volume, What are Break Even Sales And Calculate Break Even Point in Units. Calculate in terms of money Value. Calculate in % of Estimated Capacity.CVP analysis, margin of safety. Suppose Morrison Corp.’s breakeven point is revenues of $1,100,000. Fixed costs are $660,000. Required: Compute the contribution margin percentage. Compute the selling price if variable costs are $16 per unit. Suppose 75,000 units are sold. Compute the margin of safety in units and dollars. What does this tell you about the risk of Morrison making a loss? What are the most likely reasons for this risk to increase?
- Compute for the following:a. Break-even point in terms of dollarsb. Margin of safety in terms of dollarsc. The company is considering decreasing product K's unit sales to 80,000 and increasing product L's unit sales to 180,000, leaving unchanged the selling price per unit, variable expense per unit, and total fixed expenses. Would you advise adopting this plan?d. Break-even point in terms of dollars of the new planAssume the following (1) sales = $200,000 , (2) unit sales = 10,000 , (3) the contribution margin ratio = 37%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? a.) the total fixed expense = $64000 b.) the break-even point is 8,077 units c.) the total variable expense = 74000 d.) the total contribution margin = $126000Variable costs of Spring Roll LtD are 2000 €, fixed costs are 1000 € and revenue is 7000 € Therefore, the break even point in euros is: a) 1400,60 €, b) 2801,12 €, c) 1750,09 €, d) none of the choices is correct 1400,60 € 2801,12 € 1750,09€ none of the choices is correct
- d. Assuming sales of 5,000 units, calculate Buggs-Off break-even point and margin of safety in units and sales dollars. e) Recompute the break-even point in units, assuming that variable costs increased by 20% and fixed costs are reduced by $50,625. How will this impact the margin of safety ratio? f) The President of Buggs-Off is under pressure from shareholders to increase operating income by 20% in 2021. Management expects per unit data and total fixed costs to remain the same in 2021. Using the equation method, compute the number of units that would have to be sold in 2021 to reach the shareholders desired profit level. Is this a realistic goal?d) Assuming sales of 5,000 units, calculate Buggs-Off break-even point and margin of safety in units and sales dollars. e) Recompute the break-even point in units, assuming that variable costs increased by 20% and fixed costs are reduced by $50,625. How will this impact the margin of safety ratio? f) The President of Buggs-Off is under pressure from shareholders to increase operating income by 20% in 2021. Management expects per unit data and total fixed costs to remain the same in 2021. Using the equation method, compute the number of units that would have to be sold in 2021 to reach the shareholders desired profit level. Is this a realistic goal? g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit and the break-even point:(i) Sales volume increases(ii) Total fixed cost decreases(iii) Selling price per unit increases(iv) Variable cost per unit increasesd) Assuming sales of 5,000 units, calculate Buggs-Off break-even point and margin of safety in units and sales dollars. e) Recompute the break-even point in units, assuming that variable costs increased by 20% and fixed costs are reduced by $50,625. How will this impact the margin of safety ratio? f) The President of Buggs-Off is under pressure from shareholders to increase operating income by 20% in 2021. Management expects per unit data and total fixed costs to remain the same in 2021. Using the equation method, compute the number of units that would have to be sold in 2021 to reach the shareholders desired profit level. Is this a realistic goal? g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit and the break-even point: (i) Sales volume increases (ii) Total fixed cost decreases (iii) Selling price per unit increases (iv) Variable cost per unit increases