· Easy Problems Corp. produces and sells a single product. The selling price is Php 25.00 and the variable costs is Php 15.00 per unit. The corporation's fixed costs 10
Q: XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with…
A: Formula: Contribution margin per unit = Sales price per unit - Variable cost per unit
Q: Cartier Corporation currently sells its products for $50 per unit. The company's variable costs are…
A: Variable cost ratio = Variable cost per unit/Selling price
Q: 19. Easy Problems Corp. produces and sells a single product. The selling price is Php 25.00 and the…
A: Formula: Contribution margin per unit = Sales price - variable cost per unit
Q: Maple Enterprises sells a single product with a selling price of $70 and variable costs per unit of…
A: SOLUTION- FORMULAS- 1- BREAK EVEN POINT (UNITS)= FIXED COST / CONTRIBUTION PER UNIT.…
Q: O'Shaughnessy Inc. sells a product for $90 per unit. The variable cost is $65 per unit, while fixed…
A: Introduction: Break even sales unit: The sales level where there is no profit nor loss to the units…
Q: Jarvis Company produces a product that has a selling price of $20.00 and a variable cost of $15.00…
A: Contribution margin per unit = sales price - variable cost = $20 - $15 = $5 per unit Contribution…
Q: Company A has a fixed expenses of 15000 per year and each unit of product has a Php 0.002 variable…
A: Here in this question, we are required to calculate the units at which cost of both the companies…
Q: Felix Company produces a product that has a selling price of $12.00 and a variable cost of $9.00 per…
A:
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: A manufacturer of plastic traffic cones sells the cones at a wholesale cost of £8 pounds per cone.…
A: Annual profit = Contribution margin - Annual overhead costs where, Contribution margin = (Sales per…
Q: Sanjay Company has monthly fixed costs of $112,000. The variable costs are $5.00 per unit. The sales…
A: Formula: Sales revenue = Sales units x Sales price per unit
Q: Pimpton Plows sells its product for $50. Its variable cost per unit is $19.00. Fixed costs total…
A: Calculate the break even point as follows: Break even units = Fixed cost / (Selling price - variable…
Q: Easy Problems Corp. produces and sells a single product. The selling price is Php 25.00 and the…
A: Contribution=Selling price-Variable cost×Number of units sold=Php. 25-Php. 15×11,000=Php. 110,000
Q: Harvest Inc. produces and sells a single product. The selling price of the product is $200.00 per…
A: Introduction: Break even units: It tells the level of sales units where there is no profit nor loss…
Q: Kappa Inc. produces a product that has a variable cost of $8/unit. The company's fixed costs are…
A: Solution: Contribution margin per unit = sales price - variable cost = 12 - 8 = $4 per unit Break…
Q: The Company manufactures zamboozas. The selling price of the zamboozas is $45 per unit and variable…
A: Here in this question we are required to calculate sales that requires to achieve target profit. For…
Q: The Hammer Company has the following cost structure: fixed costs of Birr 70,000 per month and…
A: Contribution per unit= Sales- variable cost per unit Profit= (Sales per unit- variable cost per…
Q: The fixed cost of a ceramic company is 18,000 OMR. The variable cost is 12 OMR per unit and selling…
A: To calculate the profit, total fixed cost and total variable cost is deducted from the total sales…
Q: NUBD Co. sells two products, Avon and Bona. The company sells these products at the rate of 2 units…
A: Break even point is calculated by dividing the fixed cost by the contribution margin.
Q: A company makes a single product that it sells for P16 per unit. Fixed costs are P76,800 per month…
A: Margin of safety is the sales revenue of an entity in excess of its break-even sales. It is the…
Q: Using the following information compute the company’s breakeven number of units: The per-unit…
A: Cost volume profit (CVP) analysis is a management tool which determines the effect of change in unit…
Q: Durian Company produces and sells a single product. The product sells for Php120 per unit and has a…
A: Variable Cost: It is the cost associated with the production and varies with the amount of units…
Q: A company has monthly fixed costs of $36,000. The variable costs are $2.50 per unit. If the sales…
A: Since there are multiple questions, we will solve only first for you. To get the remaining question…
Q: n Pan Sdn Bhd produces and sells plastic plates to retailers for RM3 per unit. The variable RE b.…
A: Total variable cost per unit = Direct materials + direct labor + variable overheads + selling…
Q: ohn Co. produces a product that sells for P80. The variable manufacturing costs are P50 per unit.…
A: Contribution margin per unit means the difference of selling price per unit to the total variable…
Q: Radison Inc. sells a product for $40 per unit. The variable cost is $20 per unit, while fixed costs…
A: Contribution margin per unit = sales price - variable costs = $40 per unit - $20 per unit = $20 per…
Q: Irene LLC produces and sells a single product with the following costs: Var SG&A $2 per…
A:
Q: Basic illustration corp. produces and sells product X. The selling price is 25 and the variable cost…
A: Ans. The break even point is determined by dividing Fixed cost by contribution per unit.…
Q: MyBags Company makes small bags that sell Php 20.00 each. For coming year, management expects fixed…
A: The question is based on the concept of Cost Accounting.
Q: Felix Company produces a product that has a selling price of $12.00 and a variable cost of $9.00 per…
A: Contribution margin per unit = Selling price - Variable cost Contribution margin ratio =…
Q: mpany’s monthly fixed expenses are $28,800. The unit variable cost is _________ and the breakeven…
A: Contribution margin refers to the contribution earned by the company from the sales of its product.…
Q: MERC Company makes small bags that sell Php 20.00 each. For coming year, management expects fixed…
A: Contribution margin per unit: The excess of the selling price over the variable costs is known as…
Q: Koda electronics has the details of one of its product "X" with annual fixed cost of P150,000. Its…
A: Annual fixed cost=P150,000 Selling price per unit=P30 Variable cost=P15 Contribution per unit =…
Q: A company has monthly fixed costs of $36,000. The variable costs are $2.50 per unit. If the sales…
A: Unit Contribution Margin = Selling Price per unit - Variable cost per unit
Q: Sanjay Company has monthly fixed costs of $112,000. The variable costs are $5.00 per unit. The sales…
A: Total sales revenue = Number of Units sold × selling price per unit
Q: Cartier Corporation currently sells its products for $50 per unit. The company’s variable costs are…
A: The contribution margin is the excess of revenue over variable cost. It indicates the amount…
Q: Zoro, Inc. produces a product that has a variable cost of $6.00 per unit. The company’s fixed costs…
A: Given: Variable cost per unit = $ 6 Fixed costs = $ 30,000 Cost of product sold = $ 10 Estimated…
Q: Craylon Manufacturing Company produces two products, X and Y. The following information is presented…
A: Break Even Point is that point of sale where there is no profit and no loss for the company, which…
Q: Fu L. Khan has fixed costs of Php 120,000. At a sales volume of Php 400,000, return on sales is 10%;…
A: The provided information are: Fixed cost =Php 120,000 Sales volume = Php 400,000
Q: Harvest Inc. produces and sells a single product. The selling price of the product is $200.00 per…
A: Introduction: The contribution margin is a metric that shows how much a company's net sales…
Q: Sanjay Company has monthly fixed costs of $112,000. The variable costs are $5.00 per unit. The sales…
A: Formula: Sales revenue = Total sales price per unit x Sales units
Q: Benson Corporation is a manufacturing company that makes small electric motors it sells for $40 per…
A: The break even sales are the sales where business earns the no profit no loss during the period.
Q: Opal Company manufactures a single product that it sells for $90 per unit and has a contribution…
A: The sales units are to be calculated on the desired profit level.
Q: Versa Inc. sells a product for $100 per unit. The variable cost is $75 per unit, and fixed costs are…
A: (a) Break-even point in sales units = Fixed costsSales price per unit-Variable cost per units…
Q: Rhine Inc. make a single product with a selling price of £35 per unit. Fixed costs are £40,000 and…
A: Units that must be sold to achieve target profit means units at which business is recovering its…
Q: PASASACOST Corp. sells two products, product 1 and product 2. Three units of product 1 are sold for…
A: Contribution margin shows how much is available for the company to pay for its fixed costs out for…
Step by step
Solved in 2 steps
- 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.Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. 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 January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.Marlin 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.
- Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs per gas grill are 225, and the average price per gas grill is 600. Required: 1. How many gas grills must Gelbart Company sell to break even? 2. If Gelbart Company sells 46,775 gas grills in a year, what is the operating income? 3. If Gelbart Companys variable costs increase to 240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?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?
- 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. 11,200Abilene Industries manufactures and sells three products (XX, W, and ZZ). The sales price and unit variable cost for the three products are as follows: Their sales mix is reflected as a ratio of 4:2:1. Annual fixed costs shared by the three products are $345.000 per year. What are total variable costs for Abilene with their current product mix? Calculate the number of units of each product that will need to be sold in order for Abilene to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000
- 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?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.If 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
