Meriot, Inc. has fixed costs of $200,000, sales price of $50, and variable cost of $30 per unit. How many units must be sold to eam proft of o0007 Multiple Choice 2,800 11,200 14,000
Q: Mayfield Company sells two products, Blue models and Plaid models. Blue models sell for $44 per unit…
A: Compute the contribution margin.
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A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…
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A: The answer is option (e.) [i.e OMR 3,000 Increase] Refer step 2 for explanation
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A: Contribution margin is difference of Sales and variable costs Contribution Margin = Sales Revenue…
Q: Sunland Company sells MP3 players for $ 50 each. Variable costs are $ 40 per unit, and fixed costs…
A: Break-even sales are used to calculate the units to be sold to recover its cost of sales.It can be…
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A: Break-even units are the level of units which a company must sell if order to be at a position at…
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A: Introduction: Contribution margin per unit: Deduction of all variable costs from the sales price…
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A: Option e is correct. Break even point = fixed cost/(sales price - variable cost) = 10000/(48 - 24)…
Q: Nadia company produced electronic equipment if variable cost is 10$ and fix cost 20000 and Variable…
A: The break even sales are calculated as total fixed cost divided by contribution margin ratio.
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A: Profit = Contribution margin - Fixed costs where, Contribution margin = Sales - Variable costs
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A: Target Sales = (Fixed Cost + Desired income)/Contribution per unit
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A: Break even point = Fixed costs / Weighted Contribution margin per unit where, Contribution margin…
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A: Contribution margin per unit = selling price - variable costs per unit = $15 - $12 = $3 per unit
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A: Break-even point in sales units = Fixed Costs / (Selling Price - Unit Variable Cost)
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A: Net income is the income which is computed by diminution of operating cost from the gross profits.
Q: Saved Mustang Corp. has a seling price of $19, variable costs of $12 per unit, and fixed costs of…
A: Contribution margin per unit = selling price - variable costs per unit = $19 - $12 = $7 per unit
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A: Break-even analysis is a technique which plays an important role in decision making and it helps…
Q: Cunningham, Inc. sells MP3 players for $60 each. Variable costs are $40 per unit, and fixed costs…
A: Unit contribution margin = Sales price per unit - variable cost per unit = $60 per unit - $40 per…
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A: Ans. Breakeven point is calculated by using the following formula :- Breakeven point = Fixed cost ÷…
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A: Solution: Variable cost per unit = P50 Fixed costs = P70,000 Let nos of units = x
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A: Calculation of contribution margin per unit as follows under:-
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A: Minimum price per unit = Total cost / total units
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Q: The following information is for Nichols Company: Selling price $120 per unit Variable costs $50 per…
A: The break even sales are the sales where business earns no profit no loss during the period.
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A:
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- 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 245,000If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
- Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.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?Polaris 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.
- Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true? a. Sales will increase by 300,000. b. Overall operating income will increase by 2,600. c. Overall operating income will decrease by 25,000. d. Overall operating income will not change. e. Common fixed cost will decrease by 27,600.Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)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.
- Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs per gas grill are 225, and the average price per gas grill is 600. Required: 1. How many gas grills must Gelbart Company sell to break even? 2. If Gelbart Company sells 46,775 gas grills in a year, what is the operating income? 3. If Gelbart Companys variable costs increase to 240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200Lotts 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.