National Co. forecasted the following for 2022: Unit sales 2,000 70% 15,000 45 175,000 5% Variable cost ratio Fixed cost Selling price per Unit Outstanding liability Interest Rate
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What is the Degree of Financial Leverage?
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- The X Corp income statement resembles the following after 35,000 units were sold in 2020. Sales = $420,000 / $12 per unit Variable = $192,500 / $5.5 per unit Contribution Margin = $227,500 / $6.5 per unit Fixed Expense $110,000 Net Op Income $117,500 A. What is X Corp. breakeven point in units and dollars? B. What is X Corp. margin of safety in %, units, and dollars?Salalah Company has the financial information given in the table for the year ended on 31 December 2020. Calculate the following a) Break-even point (in units and amount) b) PV ratio c) Margin of Safety (as amount and as percentage) OMR Sales (actual) 800,000 Total fixed cost 450,000 Selling price per unit 275 Variable cost per unit 125A company has following details for this yearDetails Total sales($) Total cost($) Details Total sales($) Total cost($)Year ended 31/12/2018 35,78,998 25,89,709Year ended 31/12/2019 48,90,742 31,67,984 Calculate P/V ratio, Fixed cost, break even sales, Margin of safety 2018/2019, Variable cost 2018/2019and percent of fixed cost 2018/2019
- A projected income statement of Hailwork’s company for the coming year follows: Sales $506300 |Total Variable Cost 170865 Contribution Margin ? Total Fixed Cost 175000 Operating Income ? Compute contribution margin and contribution margin ratio Compute the Operating Income How much revenue must be earned in order to breakeven What is the effect on contribution margin ratio if the unit selling price and unit variable cost increase by 10 percent each?Factor Corporation provided the following partial income statements and detailed information for the past two years: 2021 2020 Changes Sales P900,000 P480,000 P420,000 Cost of sales 396,000 240,000 156,000 Gross income 504,000 240,000 264,000 Unit selling price P375 P300 Unit cost P165 P150 Quantity sold 2,400 1,600 How much is the price variance? OP180,000 favorable P144.000 unfavorable P180,000 unfavorable P144,000 favorable None of the other choices Refer to the case of Factor Corporation. How much is the volume variance? 240,000 unfav. 240,000 unfav. 120,000 fav. None 84,000 fav.Baryans Corporation provided the following partial income statements and detailed information for the past two years: 2021 2020 Changes Sales P360,000 P192,000 P168,000 Cost of sales 158,400 96,000 62,400 Gross income 201,600 96,000 105,600 Unit selling price P150 P120 Unit cost P66 P60 Quantity sold 2,400 1,600 How much is thr sales pricr variance? 72,000 favorable 72,000 unfavorable 57,600 unfavorable 57,600 unfavorable Refer to the case of Baryans Corporation. How much is the sales volume variance? 96,000 fav. 96,000 unfav. 48,000 unfav. 48,000 fav. Refer to the case of Baryans Corporation. How much is the cost price variance? Refere to the case Baryans Corporation. How much is the cost volume variance?
- Baryans Corporation provided the following partial income statements and detailed information for the past two years: 2021 2020 Changes Sales P360,000 P192,000 P168,000 Cost of sales 158,400 96,000 62,400 Gross income 201,600 96,000 105,600 Unit selling price P150 P120 Unit cost P66 P60 Quantity sold 2,400 1,600 How much is the cost volume variance? A. None of the other choices B. P48,000 unfavorable C. P96,000 favorable D. P96,000 unfavorable E. P48,000 favorableSohar Company’s financial information is given in the table below. Year Sales (OMR) Fixed Costs Variable Costs 2019 405000 90000 225000 2020 450000 120000 240000 Calculate: P/V ratio, E.P. Sales required to earn a profit of OMR 40000. Margin of safety at a profit of OMR 50000 Profit when sales are OMR. 200000.A company provided the following partial income statements and detailed information for the past two years YEAR 2021 2020 Changes Sales P900,000 P480,000 P420,000 Cost of Sales 396,000 240,000 156,000 Gross Income 504,000 240,000 264,000 Unit Selling Price P375 P300 Unit cost 165 150 Quantity sold 2,400 1,600 How much is the price variance? a. 180,000 Favorable b. 180,000 Unfavorable c. 144,000 Favorable
- A company provided the following partial income statements and detailed information for the past two years YEAR 2021 2020 Changes Sales P900,000 P480,000 P420,000 Cost of Sales 396,000 240,000 156,000 Gross Income 504,000 240,000 264,000 Unit Selling Price P375 P300 Unit cost 165 150 Quantity sold 2,400 1,600 How much is the price variance? a. 180,000 Favorable b. 180,000 UnfavorableHudson Co. reports the contribution margin income statement for 2019 below. Contribution Margin Income StatementFor Year Ended December 31, 2019Sales (9,600 units at $225 each) . . . . . . . . . . . . . . . . . . . . $2,160,000Variable costs (9,600 units at $180 each) . . . . . . . . . . . . . 1,728,000Contribution margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432,000Fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324,000Pretax income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 108,000 1. Assume Hudson Co. has a target pretax income of $162,000 for 2020. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target pretax income for 2020, what is its margin of safety (in percent)? (Round to one decimal place.)Baryans Corporation provided the following partial income statements and detailed information for the past two years: 2021 2020 Changes Sales P360,000 P192,000 P168,000 Cost of sales 158,400 96,000 62,400 Gross income 201,600 96,000 105,600 Unit selling price P150 P120 Unit cost P66 P60 Quantity sold 2,400 1,600 How much is the sales price variance? Refer to the case of Baryans Corporation. How much is the sales volume variance? Refer to the case of Baryans Corporation. How much is the cost price variance?