How many un
Q: hofar Company has the following information: Total Fixed cost OMR 8000 Selling price per unit OMR 20…
A: Solution; Break Even Point in Units = Fixed Costs / Contribution Margin per Unit Break Even Pont in…
Q: Thomas and Theresa work for a company that receives $75 for each unit of output sold. The company…
A: solution given Selling price per unit $75 Variable cost per unit $30 Fixed cost…
Q: If Canace Company, with a break-even point at $372,600 of sales, has actual sales of $460,000, what…
A: Margin of safety is part of cost volume profit analysis. It indicates the actors of actual sales…
Q: A company sells 4100 units of a product at 15 JOD per unit, which costs the company JOD 12 to…
A: Markup: The markup is the difference between the selling price of a product or service and the cost…
Q: Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit of $80,000.…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: The scarlet letter book store has $80000 of sales, variable cost of $27550 and fixed cost of…
A: Sales price = 80000/1400 = $57.14 Revenue function is as follows, R(Q) = 57.14Q Where Q = quantity…
Q: Tim Taylor has written a self improvement book that has the following cost characteristics: Selling…
A: Break even point = fixed cost/contribution per unit Where, Fixed cost = 98000+22800 = 120800…
Q: Megacorp and Gadgetron are two competing gadget manufacturers. Information about the price and cost…
A: 1) The sales volume that will result in Megacorp and Gadgetron having the same operating profit is…
Q: Use the information provided below to answer the following questions: How much more can the company…
A: Solution:-3.2.1 Calculation of Breakeven as follows under:-
Q: Braizen, Inc. produces a product with a $30 per-unit variable cost and an $80 per-unit sales price.…
A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…
Q: Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: As the owner of the small business, you are tasked to determine the right price for your product…
A: As the owner of the small business, you are tasked to determine the right price for your product…
Q: Dream Enterprise wants to know how much it costs to make one (1) unit of their product and how much…
A: Answer 1) Calculation of Product’s total cost per unit Total Cost per unit = (Fixed Cost per month +…
Q: how much loss would the company recognize on its income statement?
A: Given: Selling Price = S = $71 Variable Costs = V = $43 Fixed costs = $24,000
Q: Braizen, Inc. produces a product with a $30 per-unit variable cost and an $80 per-unit sales price.…
A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…
Q: The MBF factory has a total cost of 45,000 units if it produces 500 products, and a total cost of…
A: Fixed costs are the costs that a company has to bear regardless of how much revenue it gathers.…
Q: Polk Company developed the following information for its product: Sale price (per unit) Variable…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: Dennis Company sells a product for P20, variable costs are P8 per unit, and fixed costs are P32,000.…
A: Selling Price per unit= P 20 Variable Cost per unit = P 8 Contribution Margin per unit = Sales -…
Q: A producer of chairs is considering the addition of a new plant to absorb the backlog of demand that…
A: Break even point is the point where revenue is equal to variable cost and fixed cost.
Q: Exxarro Llimited is considering pricing and costing for the year ahead. The following data based on…
A: Working note: Computation of variable manufacturing cost per unit: Variable manufacturing cost per…
Q: Mary Williams, owner of Williams Products, is evaluating whether to introduce a new product line.…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit…
A: Old variable expense per unit = $40 x 70% = $28
Q: Perry, Inc. manufactures metal stampings for automobiles: stick shifts and trim kits. Fixed costs…
A: Contribution margin per unit = Sales per unit - Variable cost per unit Break-even point in…
Q: The Caplow Company, a chair manufacturing shop decides to use target profit pricing to establish a…
A: Target profit pricing is the setting up of a target price which can be computed by estimating the…
Q: A company provided the following data: Sales $699,500 Variable costs $244,825 Fixed costs $110,800…
A: The sales dollars required to attain the profit can be calculated with the help of contribution…
Q: Walton Corporation is currently selling 104 units of its product. The company is deciding the price…
A: Lets understand the basics. When any special order sales is made which does not affect the current…
Q: Techiefy Co. wants to launch a new product. It is observed that the fixed cost of the new product is…
A: Units sold = D Revenue function R(D) = 5000D - 100D^2
Q: a. If Del Rosario Company, with a break-even point at $552,000 of sales, has actual sales of…
A: Margin of safety = Total actual sales - break even sales
Q: P Company has provided the following data: Sales Price per unit: $50 Variable Cost per unit: $30…
A: We have the following information: Sales Price per unit: $50 Variable Cost per unit: $30 Fixed…
Q: Break-even (in units) fill in the blank 1 Break-even (in dollars) $fill in the blank 2
A: In accounting, the break-even point is calculated by dividing the fixed costs of production by the…
Q: The fixed costs of Anton, Inc. are $354,000 and the total variable costs for its only product are…
A: Calculation of monthly income: Sales (5700 x $140) 798,000 Less: Variable Costs (45% of $140 x…
Q: Here are the following data for Al-Nisour Company, as follows: The variable unit costs of 3.5…
A: Break even point means a point where firm is neither earning profit nor incurring any loss. Break…
Q: Newton Company currently produces and sells 6,000 units of a product that has a contribution margin…
A: In the given question, first desired contribution margin per unit to earn target income will be…
Q: SOWSEY Company is considering the addition of a new product to its current product lines. The…
A: Solution: Lowest selling price per unit could be charged to product and still make additional P2 per…
Q: a. If Canace Company, with a break-even point at $244,200 of sales, has actual sales of $370,000,…
A: Margin of safety: Difference between total sales and break even sales is called margin of safety.…
Q: You have been provided with the following information regarding the XYZ company Selling Price…
A: Hi student Since there are multiple subparts, we will answer only three subparts that are 5,6 and 7.…
Q: Benson Corporation is a manufacturing company that makes small electric motors it sells for $40 per…
A: Formula: Break even units = Fixed cost / Unit contribution margin
Q: A company would like to determine various costs and points to aid them in deciding whether to expand…
A: P/V Ratio:-Profit volume ratio is the relationship between the contribution and Sales. The formula…
Q: PJS Seating Company, a manufacturer of chair, had the following data for 2020. Sales 2,400 units Php…
A: Solution:-1 Calculation of margin of safety in Peso as follows:- First we need to calculate…
Q: What will operating income be if units sold double to 100,000 units?
A: Contribution Margin ratio: It is a ratio that measures the contribution margin generated by the…
Q: Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs…
A: Breakeven units is the units where at those units there is no loss or no profit. Breakeven in units…
Q: Tim Taylor has written a self improvement book that has the following cost characteristics: Selling…
A:
Q: Use the following information to answer the next two questions: Gentry, Inc. sells only two…
A: Break-even point = Fixed costs / Contribution Margin Per Unit
Q: The fixed costs of Chun Company are $309,000 and the total variable costs for its only product are…
A: Contribution = Selling price - Variable cost Increase in contribution margin = 120 units × $100×55%…
Q: Brody Inc. is currently selling a product at P20 per piece. The income statement for the current…
A: Income statement: The income statement shows the company's revenues and expenses earned during the…
Q: Lindon Company is the exclusive distributor for an automotive product. The product sells $40 per…
A: Given, Sales price is $40 Fixed expense is $180,000 Contribution ratio is 30% Assuming sales be Q…
Q: Kerrigan Ltd makes and sells product A. The current selling price is £11 and the total of variable…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
Q: Chile's, Inc. currently produces and sells 4,000 units of a product that has a contribution margin…
A: Contribution margin per unit at Target Profit :-…
Q: a. If Del Rosario Company, with a break-even point at $415,800 of sales, has actual sales of…
A: Break even point = Fixed costs /Contribution margin per unit where, Contribution margin per unit =…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A company has prepared the following statistics regarding its production and sales at different capacity levels. Total costs: 1. At what point is break-even reached in sales dollars? In units? (Hint: Use the capacity level to determine the number of units.) 2. If the company is operating at 60% capacity, should it accept an offer from a customer to buy 10,000 units at 3 per unit?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.
- 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 245,000Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.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.
- Baghdad Company produces a single product. They have recently received the result of a market survey that indicates that they can increase the retail price of their product by 10% without losing customers or market share. All other costs will remain unchanged. If they enact the 10% price increase, what will be their new break-even point in units and dollars? Their most recent CVP analysis is: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.Florentino Allers is the production manager of Electronics Manufacturer. Due to limited capacity, the company can only produce one of two possible products: An industrial motherboard with a 75% probability of making a profit of $1 million and a 25% probability of making a profit of $150,000 A regular motherboard with a 100% chance of making a profit of $710,000 Florentino will get a 20% bonus from his department. Florentino has the responsibility to choose between the two products and is more of a risk-taker, more so than most of the top management at Electronics Manufacturer. A. Which option is Florentino more likely to choose and why? B. Which option would the company be more likely to choose and why? C. What changes should the company make to Florentinos compensation to avoid unnecessary risks?
- Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. 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 October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.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.Marshall s target margin of safety be in units and dollars if they required a $14,000 margin of safety?