Given the selling price at P120 per unit; contribution margin at 25% and fixed cost at P250,000, the total variable expenses at the breakeven point would be? c. P 450,000 a. P 350,000 b. P 750,000 d. P 250,000

Given the selling price at P120 per unit; contribution margin at 25% and fixed cost at P250,000, the total variable expenses at the breakeven point would be? c. P 450,000 a. P 350,000 b. P 750,000 d. P 250,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3BE

See similar textbooks

Related questions

Q: Healthy Foods Inc. sells 50-pound bags of grapes to the military for $10 a bag. The Fixed costs of t...

A: Answer A) Calculation of Degree of operating Leverage if 20,000 bags are sold Amount Sa...

Q: Given the building layout for Store A, Store B, StoPe C, and Store D, what portion of the shared $60...

A: The overhead cost can be assigned to production on the basis of various usage methods.

Q: lect the correct response High professional fees of appraisers Inability to forecast future cash flo...

A: The answer is stated below:

Q: A Swiss Interior Company produces and sells lamps that are sold usually all year round. The company ...

A: Answer 1) Calculation of Normal Capacity Operating Profit = Contribution margin – Fixed Costs Operat...

Q: a. Prepare an estimate of cash position for three months from April to June. b. Based on the budget ...

A: Solution:- Given, Imagine you are the finance manager of Al Mohsin Company, we have the information ...

Q: Justing entry required on December 31, 2020. ntry required" in the first account field. Enter your a...

A: These are the accounting transactions that are having a monetary impact on the financial statement o...

Q: Element of financial position is a) Cash. b) Interest

A: This is a multiple-choice question for elements of financial statement in which we have to choose th...

Q: Cost of goods sold equals to a) ® Cost of goods available for sale - ending inventory. b) © Sales +...

A: COST OF GOODS SOLD REFERS TO THE DIRECT COSTS OF PRODUCING THE GOODS SOLD BY A COMPANY .

Q: Keri & Nick Consulting’s partners’ equity accounts reflected the following balances on August 31, 20...

A: Entries are used to record financial transactions. To generate a journal entry, you enter transactio...

Q: Appleton Company uses activity-based costing to apply overhead to and Apple glen. Appleton identifie...

Q: Answer the questions below list of transactions: Jan 1 - Owner transferred cash by check from perso...

A: Accounting equation: It implies to a financial equation that establishes a relationship among the th...

Q: Mark Limited was incorporated on1 January 2019. Authorised share capital was: - 1 000 000 ordinary s...

A: Journal entry shows the recording of transactions during an accounting year and every transaction ha...

Q: the numbers already entered in it. Would you be will- ing to prepare balance sheets for me? Also, an...

A: Balance sheet is that type of financial statement which is prepared with the aim and purpose to know...

Q: A scrambled list of accounts from the income statement and balance sheet of Belmond, Inc. is as foll...

A: The question is based on the concept of Financial Accounting.

Q: Glassica, Inc. manufactures lead crystal glasses. The standard direct labor time is 0.6 hour per gla...

A: The question is related to Standard Costing. The Direct labor cost variance is calculated with the h...

Q: Bill owns a machine shop. In reviewing the shop's utility bills for the past 12 months, he found tha...

A: Variable cost of machine hour = Change in volume / Change in activity Fixed Cost = Total cost - Vari...

Q: Required information Journal Entries under Standard Costing (Appendix), Posting Journal Entries for ...

A: The variance is calculated as difference between actual data and standard output of the production.

Q: Which is not correct? The sale of VAT registrable persons are not subject to VAT and input VAT ...

A: The answer for the multiple choice question and relevant explanation are presented hereunder : What ...

Q: Medical Assistance Developers (MAD) provides services to physicians including research assistance, d...

A: Requirement 1: Ethical issues involved are: Here, fraudulent financial reporting is included and th...

Q: A three-column cash book is to be written the relevant discount accounts in the general ledger. 2007...

A: Cash book (CB) refers to the financial journal which is prepared by companies as it states all the c...

Q: Hoodoo Voodoo Company has total assets of $66,900, net working capital of $20,650, owners' equity of...

A: Current liabilities = Total assets - Equity - Long term debt

Q: Compute for the Average Sales Period/Average Age of Inventory, use 360 days

A: Average Sales Period/Average Age of Inventory:- This ratio is prepared to know the average number of...

Q: Department A had no Work in Process at the beginning of the period, 1.400 units were completed durin...

A: Solution: Department A Computation of Equivalent unit of Production Particulars Physical Unit...

Q: Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S...

A: Under direct method of cost allocation , direct cost of service department 1 is allocated to other d...

Q: lacid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on Janua...

A: A business combination is a transaction in which a buyer takes over control of another company (the ...

Q: Transferred cash from a personal bank account in exchange for stock, $50,000 Purchased $8000 of merc...

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...

Q: A Montana state bond can be converted to $1,000 within 5 years of purchase. If the Montana bonds are...

A: Zero Coupon Bonds don't pay any coupons. They are also called Deep Discount Bonds because they are i...

Q: Which of the following shall be subject to VAT? * a. Sale of residential house and lot by the ow...

A: VAT is value added tax provide some exemption for publice interest. Following is the correct answer.

Q: King Dairy Treats opened for business on May 1, 2018. Its trial balance before adjustments on July 3...

A: Adjusting entries are journal entries used to rectify the mistakes in account balances of ledger acc...

Q: In 2022, Yami, a factory worker, receives P20,000 as monthly gross compensation. The amount include...

A: Factory overhead control account is used to record the production overheads other than direct materi...

Q: 3. Give an example of CVP and Compute BEP, Changes in Net Income, Margin of Safety, and Degree of Op...

A: The CVP Analysis is the analysis of the cost accounting i.e. the a way to find out how changes in va...

Q: Eren Retail Company was recently created with a beginning cash balance of P12,000. The owner expects...

A: Introduction Cash budget is estimation of cashflow of a business over a specified period of time, it...

Q: Mack Company purchased equipment in 2018 for S122,000 and estimated an S12,000 salvage value at the ...

A: Solution: Annual depreciation on equipment = (Cost - Salvage value) / useful life = ($122,000 - $12,...

Q: Identify which statement is incorrect: Sale of goods or services by any person or entity may re...

A: Tax is the amount of duty payable to government upon the happening of certain business transactions,...

Q: Presented below are the transactions of Muriel's Fresh Wash Laundry Services for the month of Octobe...

A: General Journal Date Account Titles Debit Credit 1-Oct Cash Dr. ...

Q: When the absolute dollar value of earnings increases year-over-year: Select one: a. It always means ...

A: The correct option with proper explanation are as follows.

Q: page of the leading newspapers c hp1,000. It is guaranteed that each 00, while 50,000 persons will r...

A: Given, Newspaper Magazine Limitations 1 0 1 0 1 1 500 1000 50,000 50,000 250,000

Q: Jet Stores Edgars Stores CBS stores Is DT Bears Credit avallable: 22 Stralght Str R1 550,35 lababa C...

A: Account statement is the statement or the document which shows all the transactions that occurred am...

Q: Vaughn Manufacturing incurs the following costs to produce 10,400 units of a subcomponent: Cost Info...

A: Solution Production- Direct material 8736 Direct labor 11752 Variable overhead 13104 Tota...

Q: Mack Company purchased equipment in 2018 for $122,000 and estimated an S$12,000 salvage value at the...

A: The question is based on the concept of Depreciation Accounting. Depreciation is the decrease in the...

Q: The following transactions happened for a retailer in January: Date Transaction # of Units Co...

A: LIFO is also written as last in first out. It is the method of inventory valuation in which it it is...

Q: Journalize the corrections for the following transactions: 1. A cash sale of $1,000,000 has been re...

Q: The leading candidate for location will have a monthly fixed cost of $21,000 and variable costs of $...

A: Contribution margin rate = (Selling price per unit - Variable cost per unit) * 100/Selling price per...

Q: The following information relates to Modern, Inc.'s overhead costs for the month: Static budget vari...

A: Variance is a result of the difference between the actual and the planned results. Volume variance r...

Q: Prepare Statement of Comprehensive Income and Statement of Financial Position as at 31 Dec 2021.

A: We are given the trial balance of Zombie Berhad as on 31st Dec 2021 along with some additional infor...

Q: Provide examples of critical customer and operational performance metrics that may be included in an...

A: Introduction: The performance measures discussed have exclusively relied on financial accounting mea...

Q: Sam and Devon agree to go into business together selling college-licensed clothing. According to the...

A: In this case, the applicable section is Section 351 as Sam will get 80 percent of the stock in the c...

Q: oasts whole coffee beans and sells them, along with a variety of freshly brewed coffees and other be...

A: A cash flow is defined as the net amount of cash or money being transferred into and out of business...

Q: E16.19 data (yen in thousands). PS: Simple Capital Structure) Huang Ltd. presented the following Net...

A: Earnings per share is the amount which is attributable to ordinary per share. It is the part of inco...

Q: Amounts receivable by the estate of the deceased, his executor or administrator as an insurance unde...

A: Under section 85(E) of the national internal revenue code, insurance shall be computation of the gro...

Question

100%

Given the selling price at P120 per unit; contribution margin at 25% and fixed
cost at P250,000, the total variable expenses at the breakeven point would be?
c. P 450,000
d. P 250,000
a. P 350,000
b. P 750,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the contribution margin per unit? A. $30 B. $50 C. $80 D. $110
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
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?
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.
Assume the selling price per unit is $30, the contribution margin ratio is 40%, and thetotal fixed cost is $60,000. What is the break-even point in unit sales?a. 2,000b. 3,000c. 4,000d. 5,000
The selling price of a product is $75.00 per unit, the variable expense is $55.00 per unit, and the breakeven sales in dollars is $300,000, what are total fixed expenses? $80,000 $4,000 $300,000 $20
Sales Total $200.000 when variable costs total $150,000 and fixed costs total $30,000, then breakeven point in sales dollars is:
A company's breakeven sales (BES) is P 600,000. If fixed costs would increase by 10% of this BES, such BES would increase by 40%. a. What is the company's variable cost ratio b. How much is fixed costs of the new BES level?
Fixed costs amounted to P1.8 million. At break-even point, the volume of EF to be sold would be
Fixed costs are $600,000 and the variable costs are 75% of the unit selling price. What is the break-even point in dollars? $1,400,000 $1,800,000 $2,400,000 $800,000
Jamie Quinn, a sole proprietor, has the following projected figures for next year: Selling price per unit $150.00 Contribution margin per unit $45.00 Total fixed costs $630,000 What is the break-even point in dollars? a.$2,100,000 b.$426,000 c.$189,000 d.$900,000