For a sales level of 3,000,000; X Corp has DOL of 2x, DTL of 3x and CM ratio is 60%. Compute the Fixed cost. a• None of the above b• 1,200,000 c• 600,000 d• 900,000
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For a sales level of 3,000,000; X Corp has DOL of 2x, DTL of 3x and CM ratio is 60%. Compute the Fixed cost.
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- Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are $600,000. Company B is a service firm with current service revenue of $2,800,000 and a 15% contribution margin. Company Bs fixed costs are $375,000. Compute the degree of operating leverage for both companies. Which company will benefit most from a 15% increase in sales? Explain why.Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.Durian Corporation has the following sales and costs structure: Unit sales price, P500 Unit variable costs, P300 Total fixed costs, P8 million Sales volume, 75,000 units Required: 1. Based on the original data, determine the CMR, BEP in pesos, operating profit, MSR, and the DOL. 2. Considering the following options to change the variables of profit, determine the new CMR, BEP in pesos, operating profit, MSR, and DOL. a. Unit sales price decreases by 15%.Unit variable costs decrease by 10%. c. Total fixed costs and expenses decrease by P800,000. d. Quantity sold decreases by 10,000.
- The following information is for Corp: Selling price $60 per unit Variable costs $40 per unit Total fixed costs $125,000 If targeted operating income is $50,000 , then targeted sales revenue is how much?The following information is for Alex Corp: Product X: Revenue $12.00 Variable Cost $4.50 Product Y: Revenue $44.50 Variable Cost $9.50 Total fixed costs $75,000 What is the breakeven point assuming the sales mix consists of two units of Product X and one unit of Product Y?Raines Company's sales are $940,000 with operating profits of $168,000. If the contribution margin ratio is 40%, what did the fixed costs amount to? Multiple Choice $408,000. $376,000. $308,000. $208,000
- The following data are available for X Company:• Ave Selling price of 16 per unit• Variable cost per unit of 11• Units sold is 200,000• Fixed cost is 800,000• Interest expense is 50,000What is the DFL (Degree of Financial Leverage)? • 2.50 times • 2.33 times • 5 times • 1.33 timesA company with P280,000 of fixed costs has the following data: Product A Product B Sales price per unit P5 P6 Variable costs per unit P3 P5 Assume three units of A are sold for each unit of B sold. How much will sales be in pesos of product B at the breakeven point?Company M's fixed costs were P45,000, its variable costs were P24,000, and its sales were P80,000. The company's break-even point in sales-pesos is: a.P33,000 b.P64,286 c.P79,000 d.P88,000
- Celine Co. generates sales of P 500,000. Variable cost is 25% and fixed cost isP 75,000. Compute: Degree of operating leverage.Ulpik Inc. has variable operation costs of $10 per unit, a selling price of $75,50 per unit and fixed operating costs of $250,000. a) Calculate the operating breakeven point in units. b) Calculate the firm's EBIT at a level of units sold of 24,000; 28,000; and 30,000 units respectively. c) With 28,000 units as a base, what are the percentage changes in units sold and EBIT, as sales move from the base to the other levels used in part b)? d) Use the percentages computed in part c) to determine the degree of operating leverage (DOL).Hang Kyuk Company has sales of P 200,000, variable costs of P 100,000 and fixed costs of P 75,000. To earn a 10% return on sales, ABC must have sales of ________
