Problem 21 same les 361 Use CVP and compute the sales revenue necessary to achieve an IBIT of $162.000 for a multi-product restaurant with total fixed costs of $150,000 from the information below: Sales Contribution Mix Margin 60% 40% Food 40% 70% Beverage
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Q: Problem 20 Use CVP and compute the sales revenue necessary to achieve an IBIT of $162,000 for a…
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- Hd.31. Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $25 per unit. Variable expenses are $8 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales $ 350,000 Variable expenses 112,000 Contribution margin 238,000 Fixed expenses 160,000 Net operating income $ 78,000 Required: Answer each question independently based on the original data: 1. What is the products CM ratio? 2. Use the CM ratio to determine the break-even point in sales dollars. 3. Assume this year's total sales increase by $40,000. If the fixed expenses do not change, how much will operating income increase? Assume that the operating results for last year were as in the question data. 4-a. Compute the degree of operating leverage based on last year's sales. 4-b. The president expects sales to increase by 16% next year. Using the degree of operating leverage from last year, what percentage increase in the operating income will the…Exercise 18-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $330 and of each door is $760. The variable cost of each window is $190 and of each door is $480. Fixed costs are $940,800. (1) Compute the weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin (3) Compute the number of units of each rpoduct that will be sold at the break-even pointeBook Problem 19-01 Management believes it can sell a new product for $7.50. The fixed costs of production are estimated to be $5,500, and the variable costs are $3.50 a unit. Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs. Round your answers to the nearest dollar. Enter zero if necessary. Use a minus sign to enter losses, if any. Quantity Total Revenue Variable Costs Fixed Costs Total Costs Profits (Losses) 0 $ $ $ $ $ 500 $ $ $ $ $ 1,000 $ $ $ $ $ 1,500 $ $ $ $ $ 2,000 $ $ $ $ $ 2,500 $ $ $ $ $ 3,000 $ $ $ $ $ Determine the break-even level using the above table and use the Exhibit 19.5 to confirm the break-even level of output. Round your answers for the break-even level to the nearest whole number. Round your answers for the fixed costs, variable…
- 5. QR Code Inc. sales two products: Queen and Pia. Data concerning the company for March follows: Product Queen Product Pia Sales..................................................................... 200,000 300,000 Variable Expenses................................................ 50,000 100,000 Traceable Fixed Cost........................................... 80,000 150,000 In addition, there were common fixed expenses of 70,000 in March. What was the segment margin for Product Queen? 6. Same data in no. 5. Suppose advertising for product Pia is increased by P20,000 per month, which results in an increased in sales of P90,000 per month. With this, what would be the effect and the amount on Product’s Pia monthly segment margin? put solutionQuestion 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…Problem 18 (Impact on overall profits). MAUREEN Co. has 2 Departments, ANGELICA and JONRIEL. ANGELICA Department sells 80 000 units of X to the outside market. Selling price for this product is P20.00, Variable cost per unit of P9.00 and a fixed cost per unit of P5.00. ANGELICA has a capacity to produce 100 000 units per period. JONRIEL Department currently purchases 10 000 units of X from JONRIEL Department for P20.00, the price charged to outsiders. JONRIEL has been approached by an outside supplier who is willing to charge X for P11.00. What is the effect on MAUREEN Co.’s overall profit if ANGELICA refuses to lower the price and JONRIEL decides to buy outside? What is the effect on MAUREEN Co.’s overall profit if ANGELICA lowered the price to P11.00 yet JONRIEL decides to buy outside? What is the effect on MAUREEN Co.’s overall profit if ANGELICA refuses to lower the price and JONRIEL still decides to buy inside? What is the effect on MAUREEN Co.’s overall profit if ANGELICA lowered…
- Exercise 22-17 a-d Carla Vista Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,960 units Sales price $60 per unit Variable costs $42 per unit Fixed costs $26,640 What is the contribution margin ratio? Contribution margin ratio % LINK TO TEXT LINK TO TEXT LINK TO TEXT What is the break-even point in dollars? Break-even point $ LINK TO TEXT LINK TO TEXT LINK TO TEXT What is the margin of safety in dollars and as a ratio? Margin of safety $ Margin of safety ratio % LINK TO TEXT LINK TO TEXT LINK TO TEXT If the company wishes to increase its total dollar contribution margin by 30% in 2020, by how much will it need to increase its sales if selling price per unit, variable price per…Q7. c) Contribution statement for komfwe dry cleaning Ltd Product A(ZMW) Product B(ZMW) Unit budgeted 1000 1000 Sales 1000 500 Variable costs 600 300 Contribution 400 200 Fixed costs 200 200 Profit 100 - Calculate i) Break-even point for each product ii) Contribution ratio for each product iii) Can you close product B and why? ExplainQ#2HASF & Company produces cleaning kits for shotguns. The production capacity available will enable the firm to produce 50,000 kits annually. A projected income statement for next year shows Sales 460,000 Costs of goods sold 296,000 Gross profit 164,000 Selling and administrative expenses 125,000 Net income 39,000 Fixed manufacturing overhead costs 40% of the cost of goods sold. Regular selling price per unit is 10 A 10% sales commission is paid to sales representatives for each kit sold. The purchasing department of a large discount chain has offered to purchase 1500 kits at $6 each. Company sales manager’s initial response is to refuse the offer because he…
- Q#1HASF & Company produces cleaning kits for shotguns. The production capacity available will enable the firm to produce 50,000 kits annually. A projected income statement for next year shows Sales 460,000 Costs of goods sold 296,000 Gross profit 164,000 Selling and administrative expenses 125,000 Net income 39,000 Fixed manufacturing overhead costs 40% of the cost of goods sold. Regular selling price per unit is 10 A 10% sales commission is paid to sales representatives for each kit sold. The purchasing department of a large discount chain has offered to purchase 1500 kits at $6 each. Company sales manager’s initial response is to refuse the offer…Plz solve correctly. An automotive supply store sells a product that has a demand of 400 units per month. Its supplier charges an ordering cost of $60 per order and $25 per unit with a 20% discount for orders of 250 units or higher. The store incurs a 20% annual holding cost. What is the store’s total annual cost (purchasing, ordering, and holding) if it orders at a quantity of 300 units? a. $121,560 b. $96,000 c. $120,000 d. $97,560QUESTION 6 Eric Clothing Limited’s annual demand for materials X is 50 000 units, and the ordering cost is P10 000 per order and each unit costs P3 000. The estimated cost of holding unit of stock is 15% of the purchase cost.Required:a. Calculate the economic order quantity (EOQ) and; b. Calculate the total annual costs of material X.