NUBD has fixed cost of P200,000. It has two products that it can sell, X and Y. NUBD sells these products at the rate of three units of X to one unit of Y. The contribution margin is P6 per unit of X and P3 per unit of Y. How many units Y would be sold at break-even point? * a ) 40,000 50,000 10,000 100,000
Q: NUBD has fixed costs of P160,000. At a sales volume of P400,000, return on sales is 10%; at P500,000…
A: Solution: Net income at Sales volume of P400,000 = P400,000 * 10% = P40,000 Net income at Sales…
Q: A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are…
A: Break-even point: It can be defined as that level of production at which the total costs incurred by…
Q: XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with…
A: Formula: Contribution margin per unit = Sales price per unit - Variable cost per unit
Q: NUBD has fixed cost of P200,000. It has two products that it can sell, X and Y. NUBD sells these…
A: Break Even Point = Fixed Cost/Weighted Contribution Margin Per unit
Q: ABC Company produces two products X and Y, which account for 60% and 40%, respectively, of total…
A:
Q: It costs a company 14 of variable and 6 of fixed cost to produce a product Z200 that sells for 35. A…
A: Fixed cost is not considered whenever there is unused capacity.
Q: Jarvis Company produces a product that has a selling price of $20.00 and a variable cost of $15.00…
A: Contribution margin per unit = sales price - variable cost = $20 - $15 = $5 per unit Contribution…
Q: NUBD wishes to market a new product for P1.50 per unit. Fixed costs to manufacture this product are…
A: Cost-volume-profit (CVP) analysis is an important and systematic method that provides useful…
Q: XYZ manufactures a computer stand. It has fixed costs of S600,000 and each stand sells for $90, with…
A: Selling price = $ 90 Variable cost = $ 48 Fixed cost = $600,000 Contribution per unit = Selling…
Q: Company is planning to produce two products, X and Y. Company is planning to sell 100,000 units of X…
A: Total Sales = (100,000 units x P4) + (200,000 units x P3) = P1,000,000 Total Variable cost =…
Q: Felix Company produces a product that has a selling price of $12.00 and a variable cost of $9.00 per…
A:
Q: Mazoon Company is producing 30000 units every year and making a profit of RO 450000. The company…
A: Formula: Degree of operating leverage = Contribution margin / Net operating income. Division of…
Q: Package contribution margin Package contribution margin ratio Break-even point in units
A: This question belongs to the sales mix. The sales mix is a situation where a product is made with…
Q: Mazoon Company has fixed costs of $12,000 and a breakeven point of 600 units. If the company plans…
A: Breakeven point in units = Fixed costs/ Contribution margin per unit Oeprating income = Contribution…
Q: Company XYZ produces and sells wireless earphones . The selling price per unit is $5 and the total…
A: Break-even point: The break-even point refers to a point where the total cost is equal to the total…
Q: NUBD Company is planning to produce two products, X and Y. NUBD is planning to sell 100,000 units of…
A: Profit = Sales Revenue - Total Variable costs - Total Fixed costs We know that variable costs…
Q: Recline Company is planning to produce and sell 11,250 units of its only product at a unit price of…
A: Break-even analysis is a technique used widely by production management. It helps to determine the…
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: Kappa Inc. produces a product that has a variable cost of $8/unit. The company's fixed costs are…
A: Solution: Contribution margin per unit = sales price - variable cost = 12 - 8 = $4 per unit Break…
Q: Sweet Manufacturing is planning to sell 400,000 hammers for $3 per unit. The contribution margin…
A: Contribution margin per unit = Sales x Contribution margin ratio = $3 per unit x 20% = $0.60 per…
Q: What is the break-even volume?
A: In order to calculate breakeven point, we need to calculate contribution. To calculate contribution…
Q: Ritz Furniture has a contribution margin ratio of 0.17. If fixed costs are $166,600, how many…
A: Formula: Break even point in sales dollars = Fixed cost / Contribution margin ratio Division of…
Q: Green Co. incurs a cost of $15 per pound to produce Product X, which it sells for $26 per pound. The…
A: The differential analysis is performed to compare two different alternatives.
Q: XYZ manufactures a computer stand. It has fixed costs of S600,000 and each stand sels for $90, with…
A: Profit = Contribution margin - Fixed costs where, Contribution margin = Sales - Variable costs
Q: ohn Co. produces a product that sells for P80. The variable manufacturing costs are P50 per unit.…
A: Contribution margin per unit means the difference of selling price per unit to the total variable…
Q: how many units must Tony sell to breakeven?
A: Breakeven sales is the sales at which there is no profit or no loss. Breakeven point = Fixed cost/…
Q: Maple Company has sales of P550,000 and has variable costs of P330,000.Fixed costs are P180,000. a.…
A: Contribution margin = Sales - Total variable cost = P550,000 - P330,000 = P220,000 Contribution…
Q: Swifty Corporation is planning to sell 810000 units for $1.50 per unit. The contribution margin…
A: Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with…
Q: NUBD Company is planning to produce two products, X and Y. NUBD is planning to sell 100,000 units of…
A: Total contribution margin = (Sales units of x * Sales price *(1- variable costs %) + (Sales units of…
Q: Felix Company produces a product that has a selling price of $12.00 and a variable cost of $9.00 per…
A: Contribution margin per unit = Selling price - Variable cost Contribution margin ratio =…
Q: XYZ manufactures a computer stand. It has fixed costs of S600,000 and each stand sells for $90, with…
A: Formula: Unit contribution margin = Sales price per unit - variable cost per unit
Q: Koda electronics has the details of one of its product "X" with annual fixed cost of P150,000. Its…
A: Annual fixed cost=P150,000 Selling price per unit=P30 Variable cost=P15 Contribution per unit =…
Q: A firm has fixed operating costs of $100,000 and variable costs of$4 per unit. If it sells the…
A: The formula to compute break-even quantity:
Q: NUBD Company is planning to produce two products, X and Y. NUBD is planning to sell 100,000 units of…
A: Formula: Contribution margin = Sales - variable cost
Q: Zoro, Inc. produces a product that has a variable cost of $6.00 per unit. The company’s fixed costs…
A: Given: Variable cost per unit = $ 6 Fixed costs = $ 30,000 Cost of product sold = $ 10 Estimated…
Q: A company needs to sell 10,000 units of its only product in order to break even. Fixed costs are…
A: The correct answer is Option (2).
Q: NUBD has fixed cost of P200,000. It has two products that it can sell, X and Y. NUBD sells these…
A: Weighted Average Contribution margin: X Y Mix 75% 25% Contribution margin P6 P3…
Q: The Vetron Company is planning to produce two products, Tig and Lam. Vetron is planning to sell…
A: Solution: - Calculation of Break-even point of "Tig" as follows under(In pesos):-
Q: NUBD Co. sells two products, Avon and Bona. The company sells these products at the rate of 2 units…
A: Break even is the point at which the entity is in a situation of no profit no loss.
Q: Suppose Elon Musk Ltd. That produces and sells two products. The X space sells for 5 $ and has a…
A: Break-Even Point is a point of sale where the company is able to recover the costs incurred for…
Q: Solomon company has total fixed cost of $15,000, variable cost per unit of $6, and a price of $8. If…
A: Units required to earn Targeted profits can be calculated by the formula as follows, =(Total fixed…
Q: Shapland Inc. has fixed operating costs of $500,000 and variable costs of $50per unit. If it sells…
A: Given information: Fixed operating costs amounted to $500,000 Variable cost per unit is $50 Selling…
Q: Yorkville sells a haircutter at $65 and each unit has variable cost of $25. Yorkville's fixed…
A: Calculation of the Incremental net income:- Incremental net income = Incremental Revenue -…
Q: Versa Inc. sells a product for $100 per unit. The variable cost is $75 per unit, and fixed costs are…
A: (a) Break-even point in sales units = Fixed costsSales price per unit-Variable cost per units…
Q: Ace Company manufactures a western-style hat that sells for P10 per unit. This is its sole product…
A: Break Even Point ( In units ) = Fixed cost Contribution per unit…
Q: A company with P280,000 of fixed costs has the following data: Product A Product B Sales price per…
A: Break-even point can be defined as the point at which total cost and total revenue are equal. There…
Q: Foris Company's product sells for P16 and has a variable cost per unit of P12. Fixed costs are…
A: The Break-even point is that level of sales, where the total cost i.e variable and fixed both are…
Q: 1. ARC Company has fixed costs of P125,000. At the breakeven point, 100,000 units are sold. If…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
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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.If 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. 2,000Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Their sales mix s reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $25,000 per year. What are total variable costs for Morris with their current product mix? Calculate the number of units of each product that will need to be sold in order for Morris to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.
- 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 245,000Abilene Industries manufactures and sells three products (XX, W, and ZZ). The sales price and unit variable cost for the three products are as follows: Their sales mix is reflected as a ratio of 4:2:1. Annual fixed costs shared by the three products are $345.000 per year. What are total variable costs for Abilene with their current product mix? Calculate the number of units of each product that will need to be sold in order for Abilene to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.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?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?Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Their sales mix is reflected in the ratio 7:3:2. If annual fixed costs shared by the three products are $196,200, how many units of each product will need to be sold in order for Salvador to break even?
- 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: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.Marchete Company produces a single product. They have recently received the results of a market survey that indicates that they can increase the retail price of their product by 8% without losing customers or market share. All other costs will remain unchanged. Their most recent CVP analysis is shown. If they enact the 8% price increase, what will be their new break-even point in units and dollars?