Racine Tire Co . manufactures tires for all-terrain bicycles , The tires sell for P60 and variable cost per tire is P45 ; monthly fixed cost is P450 , 000 . Required: If the company can increase sales volume by 15 percent above the current level ,8 , 400 , 000 tires monthly What will be the increase in net income ?

Q: Lucid Images Ltd manufactures premium high definition televisions. The firm’s fixed costs are…

A: In this numerical has covered the concept of Cost Volume Profit Analysis.

Q: Relay Corporation manufactures batons. Relay can manufacture 300,000 batons a year at a variable…

A: Variable cost per unit = Total Variable cost / No. of units = $750,000 / 300,000  = $2.50 per unit

Q: . Ruffa Company earns an average contribution margin ratio of 40% on its sales. The store manager…

A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…

Q: a) Calculate the break-even point in units.  b) What will the new break-even point be if fixed costs…

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: X Ltd. has annual sales of 10,000 units at $300 per unit. The annual fixed costs amount to $300,000.…

A: Existing Proposed  Total cost other than bad debts 2,300,000 2,400,000 2,960,000 Collection…

Q: e books of V-cut Company shows that the business has a fixed cost of 20 million pesos annually. Its…

A: Break even quantity is at which all cost are covered.

Q: Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit…

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…

Q: The Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.50…

A: “Hey, since there are multiple questions posted, we will answer three question. If you want any…

Q: Zira Ltd sells mobile gadgets for 15 each. The gadgets have a variable cost of 4 per unit, and…

A: Formula: Break even point in units = Fixed cost / Unit contribution margin

Q: Racine Tire Co. manufactures tires for all-terrain bicycles , The tires sell for P60 and variable…

A: The break even sales are the sales where business earns no profit no loss during the period.

Q: Racine Tire Co . manufactures tires for all-terrain bicycles , The tires sell for P60 and variable…

A: Contribution margin per unit = sales price - variable costs = P60 - P45 = P15 per unit

Q: Zira Ltd sells mobile gadgets for 15 each. The gadgets have a variable cost of 4 per unit, and…

A: Formula: Break even point in units = Fixed cost / Unit contribution margin

Q: Green Corporation expects to sell 3,000 plants a month. Its operations manager estimated the…

A: Minimum selling price is the price which is used to prevent the items from being sold with the no or…

Q: The Sunshine Company manufactures and sells pens. Currently, 6,000,000 units are sold per year at…

A: At the break even point  there would bee no loss or profit. contribution equals the fixed expenses.…

Q: Evergreen Fertilizer Company produces fertilizer. The company's fixed monthly cost is $25,000 and…

A: Break-Even Point is a level of sales at which the company incurred no loss no profit. It is the…

Q: Boron Company will produce 2,500 boxes of batteries next year.  Variable costs is 60% of sales,…

A: In this we have to calculate the sales price from operating income.

Q: Lucid Images Ltd manufactures premium high definition televisions. The firm’s fixed costs are…

A: Break even point in units = Fixed costs / Contribution margin per unit Where, Contribution margin…

Q: Firm M expects to earn $210,000 next year after taxes. Sales will be $4 million. This firm makes…

A: Given Information: Sales = $4,000,000 Profits after taxes = $210,000 Sales per unit = $200 Variable…

Q: The Valdez Mug Company manufactures plastic mugs that sell to wholesalers for P4.00 each. Variable…

A: Contribution margin per unit = Sales price - Total variable cost per unit = P4 - P2.2 = P1.80 per…

Q: Lucid Images Ltd manufactures premium high definition televisions. The firm’s fixed costs are…

A: Break-even point in units = (Fixed costs / Contribution margin per unit) Where, Contribution margin…

Q: Lindon Company is the exclusive distributor for an automotive product that sells for $46.00 per unit…

A: Break-even analysis is a technique used widely by the management for decision-making. It helps to…

Q: ) Samara Company is the exclusive distributor for a revolutionary bookbag. The product sells for $60…

A: SOLUTION- 1- CALCULATION OF CONTRIBUTION MARGIN PER UNIT- The contribution margin is the difference…

Q: lawn mowers, has a projected income for the coming year as follows:           Sales         $…

A:

Q: A company produces and sells 1000 units per month at a price of 2000$. By reducing the price by 50$…

A:

Q: Lucid Images Ltd manufactures premium high definition televisions. The firm’s fixed costs are…

A: Break even point in units = Fixed costs / Contribution margin per unit Where,…

Q: Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit…

A: Old variable expense per unit = $40 x 70% = $28

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A: Net income refers to the amount of income computed after deducting sales from cost of goods sold ,…

Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit.…

A: Solution..     Selling price per unit = $20. Variable cost per unit = $8  Fixed costs = $180,000 per…

Q: The Titan Company provides you with the following information for the current year: Revenues =…

A: It is given that cost of goods sold = $750,000 2/3rd of the above is variable , variable cost =…

Q: Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit…

A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…

Q: the company's sales volume in pounds must be:

A: Operating profit is the income generated by the company through its daily operating activities. The…

Q: You are selling a new line of T-shirts on the boardwalk. The selling price will be $25 per shirt.…

A: Break even point in units = Fixed costs / contribution margin per unit  Break even point in sales…

Q: The fixed cost at Harley motors are $1M annually. The main product has a revenue of $9.90 per unit…

A: Net profit or loss can be calculated by deducting fixed costs and variable costs from the sales…

Q: Lucid Images Ltd manufactures premium high definition televisions. The firm's fixed costs are…

A: a. Break Even point = Fixed costs / Contribution margin per unit Contribution margin per unit =…

Q: Lindon Company is the exclusive distributor for an automotive product that sells for $52.00 per unit…

A: As posted multiple independent questions we are answering only single question kindly repost the…

Q: Q. Samara Company is the exclusive distributor for a revolutionary bookbag. The product sells for…

A: Break-Even Point: It is the point where the company is at zero profit. It is where the company is…

Q: Treat each of the requirements as independent situations: a) Calculate the break-even point in…

A:

Q: Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit…

A: Variable cost ratio = 100 - Contribution margin ratio = 100 - 30% = 70%

Q: Cebu Tires and Rubber Company has a capacity to produce 650,000 tires of variable sizes per year. At…

A: The sales volume refers to the quantity of merchandise and the break-even sales volume is the…

Q: Welker Products sells small kitchen gadgets for $15 each. The gadgets have a variable cost of $4 per…

A: Marginal costing is an costing method and it is the variable cost of one unit of a product. Marginal…

Q: Disk City, Inc. is a retailer for digital video disks. The projected net income for the current year…

A: Calculate the contribution margin: Particulars Amount ($) Selling price 19 Less:…

Q: A business has the capacity to manufacture 720 electronic components per annum that it sells for…

A: Cost sheet is the pro forma of estimating number of units of sales, sales value and other costs…

Q: Lindon Company is the exclusive distributor for an automotive product. The product sells $40 per…

A: Given, Sales price is $40 Fixed expense is $180,000 Contribution ratio is 30% Assuming sales be Q…

Q: Tiktok Company distributes a lightweight lawn chair that sell for P150 per unit. Variable costs are…

A: Number of additional units sold = Increase in sales/selling price