Miguel Corporation budgets fixed expenses of Php250,000: variable expenses of Php180,000 and a sale of 15,000 units for Php28 each. If the Company could increase its selling price by Php2 each and decrease its variable expenses to Php150,000, the number of units to be sold in order to breakeven would be

Miguel Corporation budgets fixed expenses of Php250,000: variable expenses of Php180,000 and a sale of 15,000 units for Php28 each. If the Company could increase its selling price by Php2 each and decrease its variable expenses to Php150,000, the number of units to be sold in order to breakeven would be

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 10P

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Miguel Corporation budgets fixed expenses of Php250,000: variable expenses of Php180,000 and a sale of 15,000 units for Php28 each. If the Company could increase its selling price by Php2 each and decrease its variable expenses to Php150,000, the number of units to be sold in order to breakeven would be: 12,500 units 13,889 units 12,863 units 14,463 units
C2 Company had sales of Php576,000 and variable costs of Php324,000.Fixed costs amount to Php96,000 from an expected production of 7,200units. If the company expects to increase its sales by 960 units byincurring an additional Php24,000 for advertising expense, what willhappen to profit?
Nette and Company has sales of Php400,000 with variable costs of Php300,000, fixed costs of Php120,000 and an operating loss of Php20,000. By how much would Nette need to increase its sales in order to achieve a target operating income of 10% of sales?
Fronteeth Corp. plans to sell 500,000 units of a product at a price of P19.50 per Fixed costs for the period have been budgeted at P750,000. The profit after tax has been budgeted at P480,000 with an income tax rate of 40%, In order to meet the above requirements, how much should be the variable cost per unit?
The Break-even point in peso sales for ABC Company is Php360,000 andthe Company's contribution margin ratio is 30%. If ABC Company desiresa profit of Php84,000, sales would have to total *
The annual fixed costs for a plant are Php100,000, and the variable costsare Php140,000 at 70% utilization of available capacity, with net sales ofPhp280,000. What is the breakeven point in units of production if theselling price per unit is Php40.
For the year just ended, Lotlot Company had direct costs of P1 Million based on a production set up for the period. If the alternative set up were adopted, direct costs could have been P850,000. In addition, Lotlot fixed costs were P100,000. The incremental costs was P250,000 P150,000 P100,000 P50,000
Krismuch Co. estimated that the company can sell 200,000 units of a product next period and earn a profit of P350,000 after tax of 30%. Fixed costs are estimated at P480,000 for the period. Variable costs are equal to two thirds of sales revenue. To meet this objective, what price must be charged for each unit of product?
1. Ethan Corporation budgets fixed expenses of $250,000: variable expenses of $180,000 and a sale of 15,000 units for $28 each. If the Company could increase its selling price by $2 each and decrease its variable expenses to $150,000, the number of units to be sold in order to breakeven would be * a. 12,500 units b. 13,889 units c. 12,863 units d. 14,463 units 2, C2 Company had sales of Php576,000 and variable costs of Php324,000. Fixed costs amount to Php96,000 from an expected production of 7,200 units. If the company expects to increase its sales by 960 units by incurring an additional Php24,000 for advertising expense, what will happen to profit? Group of answer choices: a. Increase of Php33,600 b. Decrease of Php33,600 c. Decrease of Php9,600 d. Increase of Php9,600
Snider, Inc., which has excess capacity, received a special order for 4, 000 units at a price of $\S 20$ per unit. Currently, production and sales are anticipated to be 10, 000 units without considering the special order. Budget information for the current year follows. Sales $\S 196,000 $ Less: Cost of goods sold 104, 000 Cost of goods sold includes $\S 30,000 $ of fixed manufacturing cost. If the special order is accepted, the company's income will increase by?
Pasti Berhad values, advertises and sells residential property on behalf of its customers. The companyhas been in business for only a short time and is preparing a cash budget for the first four months ofyear 2020. Expected sales of residential properties are as follows.Year 2019 2020 2020 2020 2020Month December January February March AprilUnits sold 10 10 15 25 30The average price of each property is RM180,000 and Pasti Berhad charges a fee of 3% of the valueof each property sold. Pasti Berhad receives 1% in the month of sale and the remaining 2% in themonth after sale. The company has ten employees who are paid monthly. The average salary peremployee is RM36,000 per year. If more than 20 properties are sold in each month, each employeewill be paid in that month a bonus of RM1,500 for each additional property sold.Variable expenses are incurred at the rate of 50% of the value of each property sold and theseexpenses are paid in the month of sale. Fixed overheads of RM44,300 per month…
Camp Corporation produces a single product that it currently sells for P10. Fixed expenses are P120,000 for the year and variable expenses are P6 per unit. In addition, Camp’s salespersons are paid a commission of 10% of their sales.If Camp spends an additional P10,000 on advertising, increases its selling price to P12 per unit, and sells 60,000 units, its net operating income would be?