Jack’s Jax has total fixed costs of $25,000. If the company’s contribution margin is 60%, the income tax rate is 25% and the selling price of a box of Jax is $20, how many boxes of Jax would the company need to sell to produce a net income of $15,000?

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: Green Corporation expects to sell 3,000 plants a month. Its operations manager estimated the…

A: Contribution required = P 15000/ P 3000 Contribution required = P5 per plant Variable cost per plant…

Q: It costs Mills, Inc. $5 per unit to manufacture 1290 units per month of a product that it can sell…

A: Increment revenue arises when the product is processed further to earn additional revenue over the…

Q: Nytre Limited sells executive office chairs for a price of $195 each. The contribution margin ratio…

A: The targeted sales are calculated as sum of fixed cost and target profit divided by contribution…

Q: If National Co. has calculated that it needs to sell 20,000 units in order to earn an after-tax…

A: No. of units need to sell to earn desired profit = (Desired profit before tax + Fixed costs) /…

Q: A company has total fixed costs of $200,000. Its product sells for $25 per unit and variable costs…

A: a. Calculate the number of units is required to achieve the after-tax income level. Working note:…

Q: Kareem Co. produces a single product that is sold for $85 per unit. If the variable costs per unit…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: Dave’s has total fixed costs of $45,000. If the company’s contribution margin is 50%, the income tax…

A: Units need to sell to produce to desired profit = (Fixed costs + Desired profit) / Contribution…

Q: Orchid Corp. has a selling price of $15, variable costs of $10 per unit, and fixed costs of $25,000.…

A: Contribution margin is difference of Sales and variable costs Contribution Margin = Sales Revenue…

Q: If the company has a target profit of $15,000, how many units must be sold

A: Breakeven point: Breakeven point is the point at which the company makes no profit nor loss or it is…

Q: The following annual information is for Bressler Corporation:   Product X Revenue per unit: $10.00…

A: Desired units = (Fixed cost + Net income /(1-tax rate))/Contribution margin per unit Total fixed…

Q: Elkins, a manufacturer of ice makers, realizes a cost of $250 for every unit it pro- duces. Its…

A: The conceptual formula used:

Q: Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $183,800, how…

A: Cost-volume-profit analysis is a technique that is used to determine the impact of costs and sales…

Q: Raven Company has a target of $70,100 pre-tax income. The contribution margin ratio is 32%. What…

A:

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: A furniture manufacturer has an annual overhead cost of P100,000 plus 20% of the sales in pesos.…

A: Let selling price be X. Sales will be 8000X. Variable cost per unit = Labor cost+Materials cost…

Q: Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $179,300, how…

A: Break even point ( in dollars ) = Fixed costs / Contribution margin ratio

Q: Jack’s Jax has total fixed costs of $25,000. If the company’s contribution margin is 60%, the income…

A: Calculate contribution margin per box:

Q: Marsh Motors sells 5,000 motors a year for $30 apiece. Variable costs are $8 per unit, and total…

A: The break even sales units are the sales where business earns no profit no loss during the year.

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: Victoria Company produces two products, X and Y, which account for 60 percent and 40 percent,…

A: The break even sales are calculated as fixed cost divided by contribution margin ratio. Break even…

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: 1.AA Corporation sells Product Rainbow for P5 per unit. The fixed costs are P210,000 and the…

A: The calculation of amount of sales if Pearl is to realise a profit of 10% on sales and the weekly…

Q: Knoll, Inc. currently sells 51,000 units a month for $98 each, has variable costs of $68 per unit,…

A: Calculate the amount of prior profit before the price change.

Q: Carondelet Coffee has begun making and selling pastries. The fixed costs of making the pastry are…

A: Contribution margin per pastry = sales price - variable costs = $3 - $0.75 = $2.25

Q: It costs the American Automobile Company $8,000 to produce each automobile, and fixed costs (rent…

A: We need to answer following questions: a) How many cars should be produced each week to maximize…

Q: The following annual information is for Dexter Corporation:   Product A Revenue per unit: $20.00…

A: Formula: Unit contribution margin = Selling price - Variable cost per unit

Q: Oriole Cupcakes Co. is selling cupcakes for $10 for a box of one dozen. Oriole has fixed costs…

A:

Q: Jasmine Inc. makes a single product that it sells for $25 each.  Variable costs are $13 per unit and…

A: Contribution margin is sales revenue over and above it's variable costs. In order to earn target…

Q: Alice's company has a machine that can produce a maximum of 2722 components annually. She sells each…

A: a) Break even components=Fixed costs/Contribution margin per unit Fixed costs=$35,120 Contribution…

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: Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of…

A: I am answering the first three sub-parts of the question as per bartleby guidelines. Please…

Q: Jessa Company has a 40% contribution margin percentage and fixed costs of P50,000.  To earn a 15%…

A: Contribution margin ratio = Contribution margin / Sales where, Contribution margin = Sales -…

Q: Last year, Bread City had sales of 70,000 loaves resulting in revenues of $350,000. Variable costs…

A: Solution:- Profit means the surplus of revenue over the incurred costs.

Q: A firm has fixed costs of P200,000 and variable costs per unit of P6. It plans on selling 40,000…

A: Target profit before tax = P24,000/(100%-40%) Target profit before tax = P24,000/60% Target profit…

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: Newman Company currently produces and sells 7,000 units of a product that has a contribution margin…

A: Target Profit: It refers to the desired amount of profit that a company expects to achieve by the…

Q: Krismuch Co. estimated that the company can sell 200,000 units of a product next period and earn a…

A: The price of the product per unit = P14.7 Refer step2 for explanation

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: Jack’s Jax has total fixed costs of $25,000. If the company’s contribution margin is 60%, the income…

A: Given,

Q: Lin Corporation has a single product, whose selling price is $200 and whose variable cost is 60% of…

A: Required sale is to be calculated so that we can recover our variable cost , fixed cost and earn the…

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: 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: At a sales volume level of 2,250 units, National Co.’s contribution margin is one and one-half of…

A: Break even point = Fixed costs /Contribution margin per unit  where, Contribution margin per unit =…

Q: If selling price per unit is $30, variable costs per unit are $20, total fixed costs are $10,000,…

A: Net income - It is also known as net profit, it is the amount that is left after deducting all the…

Q: Rusty, Inc. is the sole distributor of a computer product that sells for $50 per unit, and has a…

A: Marginal Costing - Marginal Costing is good method used to calculate cost of each additional unit…

Q: Chile’s, Inc. currently produces and sells 4,000 units of a product that has a contribution margin…

A: We know that under marginal costing  Profit = Sales Revenue - Total Variable cost - Total Fixed…

Q: 3/Summer Company sells a product with a contribution margin ratio of 60%. Fixed costs are $650 per…

A: Required dollars sales = Total contribution margin required / 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%…

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.