PT Manunggal sells its production during 2022 as many as 15,000 units with a selling price of Rp. 10,000 per unit. To produce 15,000 units, the fixed costs are Rp. 50 million and variable costs are Rp. 4,000 per unit. For 2023, it is estimated that the number of units sold will increase by 10%. Requested: Assuming the selling price, fixed costs and variable costs do not change, calculate the estimated operating profit/loss for 2023. Notes : Write it down along with the complete way of working

PT Manunggal sells its production during 2022 as many as 15,000 units with a selling price of Rp. 10,000 per unit. To produce 15,000 units, the fixed costs are Rp. 50 million and variable costs are Rp. 4,000 per unit. For 2023, it is estimated that the number of units sold will increase by 10%. Requested: Assuming the selling price, fixed costs and variable costs do not change, calculate the estimated operating profit/loss for 2023. Notes : Write it down along with the complete way of working

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 13E

See similar textbooks

Similar questions

Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $18,250 per year. The information they will use to consider these changes is shown here.
Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?
Caduceus Company is considering the purchase of a new piece of factory equipment that will cost $565,000 and will generate $135,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return In Excel, see Appendix C.
Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)
Ziga Company manufactures lamps and expects to sell 350,000 units in 2022 at P21 per unit. Planned per unit manufacturing costs at the level of production are as follows: Variable manufactuing costs P9.00 Fixed manufacturing costs 5.00 Earning in 2020, a new customer approaches Ziga Co. offers to buy 15,000 lamps at P11.00 per unit. Ziga can produce additional units with no change in fixed manufacturing cost or per unit variable cost. The only additional fixed cost for this order is for packing and shipping, estimated at P30,000. Required: Determine whether Ziga should accept the special order (filling the special order will not affect the regular sales). What is the total profit of Ziga if the special order is accepted. Show supporting computations. If the new customer’s offer to buy 15,000 lamps is accepted, what is the minimum price per unit charge by Ziga if the company expects a profit of…
In 2020, National Co. sold 3,000 units at P500 each. Variable expenses were P250 per unit, and fixed expenses were P150,000. The same selling price is expected for 2021. National Co is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is National Co.’s break-even point in units for 2021?
In 2020, National Co. sold 1,000 units at P500 each, and earned net income of P40,000. Variable expenses were P300 per unit, and fixed expenses were P160,000. The same selling price is expected for 2021. National Co.’s variable cost per unit will rise by 10% in 2021 due to increasing material costs, so they are tentatively planning to cut fixed costs by P20,000 and to increase the selling price by P150. How many units must National Co. sell in 2021 to maintain the same income level as 2020? (round to whole number)
In 2019, Vaughn sold 3000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $490000. The same selling price is expected for 2020. Vaughn is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is Vaughn’s break-even point in units for 2020? 2450. 2352. 2940. 1960.
In 2019, Crest Company provided the following data: Sales price per unit P100; Variable cost per unit P60; Total fixed cost at P1,500,000. For 2020, Crest Company is planning to buy a machine that will reduce the production workers and cut the sales price of the product at the same time. The new machine will increase the fixed cost by P500,000 due to depreciation; variable cost per unit will decrease by 25% due to reduction of direct workers; and the sales price will be reduced by 10%. What is the profit (before tax) if the company produces and sells 45,000 units in 2020? 25,000 26,000 27,000 28,000
For XYZ Company , how many units of their product would have to be sold to yield a target operating income of $92,000 for the financial year ending 2021, assuming variable costs are $50 per unittotal fixed costs are \$8, , and the unit selling price is $60 ? a. 800 units b. 2,000 units c. 10,000 units d. 9,200 units
In 2019, Preston Company provided the following data: Sales price per unit P100; Variable cost per unit P60; Total fixed cost at P1,500,000. For 2020, Preston Company is planning to buy a machine that will reduce the production workers and cut the sales price of the product at the same time. The new machine will increase the fixed cost by P500,000 due to depreciation; variable cost per unit will decrease by 25% due to reduction of direct workers; and the sales price will be reduced by 10%. What is the break-even units in 2020? 44,444 45,000 50,000 37.500
In 2019, Reyes Company provided the following data: Sales price per unit P100; Variable cost per unit P60; Total fixed cost at P1,500,000. For 2020, Papa Company is planning to buy a machine that will reduce the production workers and cut the sales price of the product at the same time. The new machine will increase the fixed cost by P500,000 due to depreciation; variable cost per unit will decrease by 25% due to reduction of direct workers; and the sales price will be reduced by 10%. What is the profit (before tax) if the company produces and sells 45,000 units in 2020? a.28,000 b.25,000 c.27,000 d.26,000 What is the break-even units in 2020? a.37.500 b.50,000 c.44,444 d.45,000 What is the profit if the company operates at 45,000-unit volume? a.P600,000 b.P300,000 c.P 45,000 d.None of the above