Problem 20 Use CVP and compute the sales revenue necessary to achieve an IBIT of $162,000 for a multi-product restaurant from the information below. Food Beverage Total Sales $240,000 000'091 192,000 VC %00 CM 0000 112,000 208,000 52% FC 000ʻ96 IBIT 000's
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- Question 2: Zeroll Ice Cream company produces and sells premium ice cream cones in Coles supermarkets. The following table shows selling price and cost information of ice cream cones: Price per cone: $ 5.00 Variable cost per cone:Ingredients $1.35Direct labour $0.45Overhead $0.20Fixed cost per month $3,000Required: a. Calculate the breakeven point in units and in dollars. Click or tap here to enter text.b. The company’s general director has determined a target profit of $6,000 for next year. Given the price and cost information above, what are the required sales in units and in dollars for the company to achieve this target? Click or tap here to enter text.c. Calculate Zeroll’s new break-even point (in units and in dollars) for each of the following independent scenarios: Selling price decreases by $0.50 per cone. Click or tap here to enter text. Fixed costs decrease by $300 per month. Click or tap here to enter text. Variable costs increase by $0.50 per cone Click or tap here to…QUESTION 1 (c) A software company has invested RM10 mil into development and marketing forits latest application program, which sells for RM50 per copy. Each costs thecompany RM15 to sell. Sales volume reaches one million copies. Calculate theoperating leverage (DOL). Answers should be written with proper example and elaborations. Thank you.SCRUMPTIOUS CUPCAKESProfit and loss accountfor the year ended 30 April 20202020£SalesSales 220,000Cost of sales 120,000Gross Profit 100,000ExpensesSalaries 24,000Other Fixed cost 4,800Distribution 3,000Advertising 4,500Rent 13,200AHUtilities 3,600Other Cost 4,00057,100Operating Profit 42,900 SCRUMPTIOUS CUPCAKESBalance Sheetas at 30 April 20202020£Fixed assetsIntangible assets -Tangible assets 35,000Investments -35,000Current assetsStocks 3,000Debtors 10,000Cash at bank and in hand 6,30019,300Written ReportsCreditors: amounts falling duewithin one year (11,300)Net Current Assets 8,000Total assets less currentliabilities 43,000Net Assets 43,000Capital and reservesCalled up share capital 100Profit and loss account 42,900Shareholders' funds 43,000 please calculate the folliwing ratios: Profitability Ratios – Gross Profit Margin, Net Profit Margin and ROCE● Liquidity – Current Test and Acid Test● Gearing● Activity/Performance – Stock Turnover, Debtors’ Collection Period and AssetTurnover…
- Consider the following information for a given business. Sale revenue =GHS40,000 VC per unit =GHS20 Activity level =1,000 to break even Required: 1. Determine the TFC 2. Express the contribution as a percentage of sale. 3. The company plans to sale 1,500 unit in the next period. What will be the percentage margin of safety (MoS) 4. What margin should the business employ for planning purposes? 5. What total profit should the business expect in order to achieve it's planned sales?Segment margin Muffins: $450,000 Tortes: $540,000 Cookies: $100,000 In 2014 Janice Martin fulfilled a life-long dream and moved her home-based cottage baking business to a retail storefront with a commercial kitchen. Since then, she has continued to develop here product lines and now specializes in three products featuring high quality cocoa: muffins, tortes, and cookies. Janice just received the latest annual income statement, shown below. Muffins Tortes Cookies Total Sales volume 100,000 boxes 60,000 tortes 40,000 boxes Sales revenue $2,500,000 $2,400,000 $480,000 $5,380,000 Cost of goods sold 1,500,000 1,380,000 240,000 3,120,000 Gross profit 1,000,000 1,020,000 240,000 2,260,000 Selling & Administrative Expense Variable 400,000 360,000 80,000 840,000 Fixed 330,000 260,000 180,000 770,000 Total Selling & Administrative Expense 730,000 620,000 260,000 1,610,000 Operating income (loss) $ 270,000 $…A6) Finance XYZ is a retailer and sells 179,000 units per year. It purchases from a single supplier. Fixed costs per order are $868 and carrying cost is $11 per unit. How many units should XYZ purchase per order? That is, what is the Economic Order Quantity? Enter your answer rounded off to two decimal points. Margin for error: +/- 1
- Firm: FedEx • 140 accounts in the advertising industry use 2,285 Courier Packs (CP) per month • CP price is $12.50 and variable cost is $4.25 • Retention rate=0.9, discount rate=12% • What is the maximum FedEx should be willing to spend to acquire a new account in this industry?12. Menchie Corporation is developing standards for its products. One product requires an input that is purchased for P57.00 per kilogram from the supplier. By paying cash, the company gets a discount of 8% off this purchase price. Shipping costs from the supplier's warehouse amount to P3.60 per kilogram. Receiving costs are P0.26 per kilogram. The standard price per kilogram of this input should be: A.P 57.70 В. Р 56.30 С. Р 65.42 D. P 57.00XXX Company sells products Laptop, Desktop and Tablet. In 2020 the unit sales price, variable costs, and sales mix of these products were: Products Laptop Desktop Tablet Sales Mix Ratio 4 4 2 Selling price per unit $ 1800 $ 1400 $ 1000 Variable Cost per unit $ 1200 $ 1000 $ 200 Fixed Cost $ 10,000,000 Required (1) Compute Jasmine's breakeven sales (units) in 2020. Prove your answer (2) Calculate the sales required to earn a target profit $ 20,000,000 and prove your answer
- Practice 1: D& F., Inc. has developed a new product, the Number Cruncher 2000 to add to its ever-expanding offerings. After doing market research, it has determined that customers would be willing to pay $140 for the NC2000. D&F seeks to earn 25% profit on the product. At present, D&F makes a similar, old style model (The NC1000) for $101.25, which sells for $130. What must the target cost be in order to earn the 25% profit that the company demands? If D&F can adjust its costs to the target cost, the company estimates that it can sell 50,000 NC2000s. What would D&F’s profit be at this point? How many of the old style NC1000s would have to be sold to reach the same profit? D&F’s head of manufacturing operations is sensitive to the attainability of the cost projections in number 1 above. He has been analyzing the production process to determine how long it takes for one of its NC1000, or NC2000 products to pass through the process. The following…10 Slosh Cleaning Corporation services both residential and commercial customers. Slosh expects the following operating results next year for each type of customer: Residential Commercial Sales P60,000 P140,000 Contribution margin ratio 50% 30%Slosh expects to have P50,000 in fixed expenses next year. What would Slosh's peso sales revenues from Commercial customers have to be next year in order to generate a profit of P166,000? Group of answer choices P600,000 P432,000 P210,000 P500,000 P420,000 P300,000 P216,000 P540,000Question 2 Style photo sells only one product. The statement of comprehensive income for 2021 is provided below: Sales 60,000 Less variable expenses -30,000 Contribution margin 30,000 Less fixed expenses -22,500 Net income 7,500 Required: Calculate with workings: The contribution margin ratio in percentage. Three breakeven point in total sales ringgits. The sales in RM if the company wants to achieve RM40,000 in net income.