Penny Corporation desires to earn target net income of $15,000. If the selling price per unit is $51, unit variable cost is $31, and total fixed costs are $685,000, the number of units that the company must sell to earn its target net income is
Q: Locus Company has total fixed costs of $115,000. Its product sells for $43 per unit and variable…
A:
Q: A company has fixed costs of $270,000, a contribution margin per unit is $14, and contribution…
A: Target contribution margin = Target income + Fixed cost = $60,000 + $270,000 = $330,000
Q: Lauder Company had fixed costs of $282,500, variable costs of $645,000, and actual sales amounted to…
A: Lets understand the basics. Margin of safety is a profit earn by the company over a break even…
Q: Spice Inc.'s unit selling price is $51, the unit variable costs are $38, fixed costs are $102,000,…
A: Formula: Contribution margin = Selling price - variable cost
Q: If fixed costs are $1,472,000, the unit selling price is $236, and the unit variable costs are $110,…
A: Number of units that are to sold for desired profit means number of units at which business is…
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A: Break-even analysis is a technique used widely by the production management. It helps to determine…
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A: Contribution Margin: It is defined as the difference between the sales and the variable cost. In…
Q: Prius motorparts company is currently operating at 80% capacity level. The production under normal…
A: Normal production capacity=150,000 units Capacity =80% Variable cost per unit=RM14 Fixed…
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: 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: Marengo Corporation's total costs at breakeven are $80,000 when it sells 20,000 units. These costs…
A: Fixed cost = total costs x 75% = $80000 x 75% = $60,000 Variable cost = total costs x 25% =…
Q: Orion recently reported sales revenues of $800,000, a total contribution margin of $300,000, and…
A: Total variable cost=Sales-Contribution=$800,000-$300,000=$500,000
Q: For XYZ Company , how many units of their product would have to be sold to yield a target operating…
A: Contribution margin per unit = sales - variable costs = 60 - 50 = $10 per unit
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: 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: Reynold's Company has a product with fixed costs of $261,000, a unit selling price of $23, and unit…
A: Break even sales (units) = Fixed costs/Contribution margin per unit Contribution margin per unit =…
Q: At its $25 selling price, Paciolli Company has sales of $10,000, variable manufacturing costs of…
A: Formula: Contribution margin = Selling price per unit - variable cost per unit Deduction of variable…
Q: Skyline Corp. has a selling price of $30 per unit, variable costs of $22 per unit, and fixed costs…
A: Solution: Breakeven sales units = Fixed costs / CM per unit = $46,400 / ($30 - $22) = 5800 units
Q: At a sales volume of 32,000 units, CD Company’s total fixed costs are $64,000 and total variable…
A: Variable cost per unit = Total Variable cost / Total no. of units = $60,000 / 32,000 units = $1.875…
Q: Radison Inc. sells a product for $40 per unit. The variable cost is $20 per unit, while fixed costs…
A: Contribution margin per unit = sales price - variable costs = $40 per unit - $20 per unit = $20 per…
Q: Zhao Co. has fixed costs of $354,000. Its single product sells for $175 per unit, and variable costs…
A: Given: Fixed Costs = $354,000 For a single unit: Selling price = $175 Variable Cost = $116 Target…
Q: Orion recently reported sales revenues of OMR 83000, a total contribution margin of OMR 24000, and…
A: The answer is as fallows
Q: Piper Technology's fixed costs are $1,500,000, the unit selling price is $250, and the unit variable…
A: Desired Sales = (Fixed Cost + Desired Profit)/ Contribution margin per unit Contribution margin per…
Q: A company has fixed costs of $270,000, a contributmargin per unit of $14, and a contribution margin…
A: The Break-even point is the point where the company is able to cover all its costs but does not make…
Q: Orion Inc., is a newly organized manufacturing business that plans to manufacture and sell 30,000…
A: Contribution is the difference between the sales price and variable cost Contribution = Sales -…
Q: Porter Corporation has fixed costs of $500,000, variable costs of $32 per unit and a contribution…
A: Requirement a:
Q: A company has $6.70 per unit in variable costs and $4.10 per unit in fixed costs at a volume of…
A: Variable cost per unit = $ 6.70 Fixed Cost per Unit = $ 4.10 Total Cost per unit =$ 6.70+$ 4.10…
Q: markup percentage, using the product cost concept
A: Particulars Amount in $ Variable product cost 100000 units@$15 1500000 Fixed product cost…
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A: Net operating income is the amount of money earned from the operations of an entity. It is an amount…
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A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…
Q: Bluegill Company sells 10,000 units at $400 per unit. Fixed costs are $200,000, and operating income…
A: Contribution margin = Fixed cost + Income from operations Fixed cost is $200000 Income from…
Q: New Berlin Corporation has annual fixed costs of $800,000, variable costs of $48 per unit, and a…
A: The contribution margin is calculated as difference between sales and variable costs. The…
Q: Luna Sea Sushi, Inc. has total costs of $90,000 when it sells 40,000 units. If total fixed costs are…
A: Total Cost = $ 90,000 Units Sold = 40, 000 Units Fixed Cost = $ 50,000
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A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: A company has $7.90 per unit in variable costs and $4.80 per unit in fixed costs at a volume of…
A: Formula: Total cost = Variable cost + Fixed cost.
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: ABC Corporation has the following information about its single product: Selling Price per unit ₱ 20…
A: The break even sales are the sales where business earns no profit no loss during the period. The…
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: What will operating income be if units sold double to 100,000 units?
A: Contribution Margin ratio: It is a ratio that measures the contribution margin generated by the…
Q: Golden Corporation contemplates to market a new product. Estimated fixed costs is P1,000,000. The…
A: The contribution margin is calculated y deducting the variable cost from the net sales of the…
Q: Rhine Inc. make a single product with a selling price of £35 per unit. Fixed costs are £40,000 and…
A: Units that must be sold to achieve target profit means units at which business is recovering its…
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: Willie Company sells 30,000 units at $29 per unit. Variable costs are $20.30 per unit, and fixed…
A: Formula: Contribution margin = Sales price - variable cost. Deduction of variable cost from sales…
Q: Orion recently reported sales revenues of S800,000, a total contribution margin of $300,000, and…
A: Introduction: Variable cost: The cost which is not fixed in nature. Variable cost varies according…
Q: Zhao Co. has fixed costs of $390,600. Its single product sells for $181 per unit, and variable costs…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: Company XYZ is producing and selling 2,500. At this level, the selling price per unit is $10, the…
A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…
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- 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?A company has prepared the following statistics regarding its production and sales at different capacity levels. Total costs: 1. At what point is break-even reached in sales dollars? In units? (Hint: Use the capacity level to determine the number of units.) 2. If the company is operating at 60% capacity, should it accept an offer from a customer to buy 10,000 units at 3 per unit?Suppose that a company has fixed costs of $18 per unit and variable costs $9 per unit when 15,000 units are produced. What are the fixed costs per unit when 12,000 units are produced?
- Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.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.)Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
- 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.Lotts 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.Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.
- 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.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.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.