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- The sales and cost data for two companies in the transportation industry are as follows: X Company Y Company Amount Percent Amount Percent Sales $ 150,000 100.00 $ 150,000 100.00 Variable costs 90,000 60.00 45,000 30.00 Contribution margin 60,000 40.00 105,000 70.00 Fixed costs 34,200 70,250 Operating income (πB) $ 25,800 $ 34,750 X Company's degree of operating leverage (DOL) at the current sales volume level is calculated to be:The following information relates to the operations of a company; cost per unit from supplier- GH¢80, variable cost per unit GH¢40 and total fixed cost of GH¢300000. The company determines its selling price by adding a margin of 20%. What is the breakeven quantity?Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: GK LQ XK Selling price per unit $ 326.11 $ 543.37 $ 519.00 Variable cost per unit $ 252.05 $ 420.86 $ 397.71 Time on the constraint (minutes) 4.00 8.00 8.00 Required: a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. b. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your answer to 2 decimal places.) A. GK LG QX B. Maximun Amount
- Falsetta Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: ZA JK DHSelling price per unit........................ $402.67 $462.82 $374.06Variable cost per unit....................... $307.53 $344.56 $285.56Time on the constraint (minutes) ...... 6.70 7.30 5.90 Required:a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. Show your work! b. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource?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?Given the price and cost data shown in the accompanying table for each of the three firms, F, G, and H: (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Firm F G H Sale price per unit $18.00 $21.00 $30.00 Variable operating cost per unit 6.75 13.50 12.00 Fixed operating cost 45,000 30,000 90,000 a. What is the operating breakeven point in units for each firm? b. How would you rank these firms in terms of their risk?
- 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.Understanding CVP relationships Calculate the missing amounts for each of thefollowing firms:Units Selling Variable Costs Contribution Fixed OperatingSold Price per Unit Margin Costs Income (Loss)Firm A 11,200 $24.00 ? $100,800 $41,300 ?Firm B 8,400 ? $18.20 ? 64,500 $32,940Firm C ? 7.30 4.20 10,850 ? (6,750)Firm D 4,720 ? 51.25 41,064 48,210 ?Following information is related to Product X of Zempa Company: Current replacement cost $230 Cost to distribute $42 Historical cost Normal profit margin Selling price $215 $36 $245 If lower-of-cost-or-market rule (LCM Rule) is applied, then the value of Product X that would be reported in the balance sheet is: a.
- The sales and cost data for two companies in the transportation industry are as follows: X Company Y Company Amount Percent Amount Percent Sales $ 156,000 100.00 $ 156,000 100.00 Variable costs 93,600 60.00 46,800 30.00 Contribution margin 62,400 40.00 109,200 70.00 Fixed costs 34,350 70,400 Operating income (πB) $ 28,050 $ 38,800 X Company's margin of safety ratio (MOS%) (rounded) is:Most businesses sell several products at varying prices. The products often have different unit variable costs. Thus, the total profit and the breakeven point depend on the proportions in which the products are sold. Sales mix is the relative contribution of sales among various products sold by a firm. Assume that the sales of Jordan Incorporated for a typical year are as follows: Product Units Sold Sales Mix A 18,384 80% B 4,596 20 Total 22,980 100% Assume the following unit selling prices and unit variable costs: Product Selling Price Variable Cost Contribution Margin A $ 92 $ 77 $ 15 B 152 112 40 Fixed costs are $424,000 per year. Assume that the sales mix, expressed in terms of relative physical units sold, is constant as sales volume changes. Required:5. Assume the original facts except that now fixed costs are expected to be $42,400 higher than originally planned. How does this expected increase in fixed costs affect the breakeven point in…Most businesses sell several products at varying prices. The products often have different unit variable costs. Thus, the total profit and the breakeven point depend on the proportions in which the products are sold. Sales mix is the relative contribution of sales among various products sold by a firm. Assume that the sales of Jordan Incorporated for a typical year are as follows: Product Units Sold Sales Mix A 18,384 80% B 4,596 20 Total 22,980 100% Assume the following unit selling prices and unit variable costs: Product Selling Price Variable Cost Contribution Margin A $ 92 $ 77 $ 15 B 152 112 40 Fixed costs are $424,000 per year. Assume that the sales mix, expressed in terms of relative physical units sold, is constant as sales volume changes. Required: 1. Determine the breakeven point in total units and, for this breakeven point, calculate the number of units of A and B that must be sold. Use the weighted-average contribution margin approach.3.…
