Suppose ABC Company sells a product for RM 4 each and the variable costs are RM 2.82 per unit and company has fixed costs of RM 1758.2. Compute the break-even point in units as well as in RM. Add diagrams and explanations.
Q: A company produces and sells two products with the following costs: Variable costs (per £ of sales)…
A: Break-Even Sales: It the amount of Revenue at which the Total Cost of Production (Variable Costs +…
Q: ABC Company has the following information: Variable Cost per Unit is P 15; Fixed Expenses is…
A: Given that, Variable cost per unit = P15 Fixed cost = P54000 Selling price per unit = P20…
Q: Sheridan Inc. sells a product for $106 per unit. The variable cost is $64 per unit, while fixed…
A: Contribution margin per unit = Sales price - variable cost = $106 - 64 = $42 per unit
Q: Suppose Morrison Corp.’s breakeven point is revenues of $1,100,000. Fixed costs are $660,000. Q1.…
A: 1. Compute the contribution margin percentage.
Q: Suppose ADI Corporation’s Break-even sales volume is Php450,000 with fixed costs of Php200,000.…
A: At break even point, Contribution margin - fixed costs = 0 Contribution margin - Php200,000 = 0…
Q: Prestige Ltd. produces 3 products and has fixed costs of RM363,000 a year. Other data for the year…
A: Breakeven point is that point of sales revenue at which business is only recovering its fixed costs…
Q: Rooney Company reported the following data regarding the product it sells: Sales price Contribution…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: t is observed that the fixed cost of the new product is $35,000 and the variable cost per unit is…
A: 1) Revenue Function = 5,000D - 100D^2 2) Cost function = $35,000 + D*$500 =35,000+ 500D 3) Profit…
Q: Suppose a company has fixed costs of $300 and variable 3 costs of x x+1460 dollars per unit, 4 where…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: From the following data, you are required to calculate- 1)P/V Ratio 2) Break even sales with the…
A: The ratio which shows the proportion of fixed expenses and profit in total sales figure is called as…
Q: Miko Firm is assessing its cost structure. It has P680,000 in fixed operating costs, P5.80 in…
A: Break-even Point refers to that point where the cost of production is equal to the revenue of a…
Q: A company would like to determine various costs and points to aid them in deciding whether to expand…
A: The Break-even point is the level of sales where the fixed cost is equal to the contribution margin.…
Q: Hang Kyuk Company has sales of P 200,000, variable costs of P 100,000 and fixed costs of P 75,000.…
A: Cost-volume-profit analysis: Cost-volume-profit analysis is a technique that is used to determine…
Q: Dilts Company has a unit selling price of $670, variable costs per unit of $450, and fixed costs of…
A: Break Even Point: The break even point is the level of production at which the costs of production…
Q: The fixed cost of a ceramic company is 18,000 OMR. The variable cost is 12 OMR per unit and selling…
A: To calculate the profit, total fixed cost and total variable cost is deducted from the total sales…
Q: Currently, a company has fixed costs of P32,500, a contribution ratio of 65%, and is selling its…
A: Breakeven sales: It the level of sales at which the business does not make any profit nor does it…
Q: Ritz Furniture has a contribution margin ratio of 0.17. If fixed costs are $166,600, how many…
A: Formula: Break even point in sales dollars = Fixed cost / Contribution margin ratio Division of…
Q: Assume a company sells a given product for $12 per unit. How many units must be sold to break even…
A: Total variable cost per unit = $3.5 + $0.5 = $4 Contribution per unit= Selling price per unit -…
Q: XYZ Inc. sells a product for OMR 2.5 per unit. The variable cost is OMR 1.7 per unit, and fixed…
A: The break-even point is a point at which the total cost is equal to the total revenue. In other…
Q: business has selling price of P 129.50 with an average variable cost of P 54.40. Fixed costs are P…
A: Solution: Contribution margin is the margin of profits which is the excess part of sale price over…
Q: Compute the number of units or product that must be soid if the company is to break-even in each of…
A: Note: Since you have posted multiple questions, we will solve the first question up to 3 sub-parts.…
Q: If a company's variable costs are 70% of sales, which formula represents the computation of peso…
A: Solution: If variable cost is 70% of sales and profit is 10% for sale, it means: Fixed costs = 20%…
Q: The following information relates to the operations of a company; cost per unit from supplier-…
A: Solution= Selling price= 80/1-0.20 =80/0.80 = GHC100…
Q: Jonathan manufactures a product which was sold in the market for P165 per unit. Its variable cost…
A: Contribution margin per unit =Sales - Variable cost Contribution margin ratio =Contribution margin…
Q: A company's fixed operating costs are $740,000, its variable costs are $2.25 per unit, and the…
A: Paticulars Amount Sales price per unit 4.65 Less Variable Expenses per unit…
Q: LKBP Co. sells two products, Natasha and Bench. The company sells these products at the rate of 2…
A: Weighted average contribution per units = (contribution margin per unit of natasha x sales mix) +…
Q: Based on the below examples (1&2), how can I figure out which contribution margin is needed to…
A: 1. Contribution Margin Per Unit = Sales x (1 - variable cost %) = 28 per unit x (1 - 0.65) = $9.80…
Q: A B C P12 Selling price per unit Variable cost per unit P25 P15 P10 P6 P5 Fixed operating costs…
A: Contribution margin per unit = sales price - variable cost per unit Break-even point = Fixed costs /…
Q: Here are the following data for Al-Nisour Company, as follows: The variable unit costs of 3.5…
A: Break even point means a point where firm is neither earning profit nor incurring any loss. Break…
Q: NUBD Co. sells two products, Avon and Bona. The company sells these products at the rate of 2 units…
A: Break even is the point at which the entity is in a situation of no profit no loss.
Q: The following information relates to the operations of a company; cost per unit from supplier-…
A: Solution = Selling price is by adding 20% cost of product is =80 selling price = 80/1-.20…
Q: company's fixed operating costs are $430,000, its variable costs are $2.95 per unit, and product's…
A: As per Given information: Fixed cost = $430,000 Variable cost =$2.95 Sale price = $4.50
Q: Suppose Elon Musk Ltd. That produces and sells two products. The X space sells for 5 $ and has a…
A: Break-Even Point is a point of sale where the company is able to recover the costs incurred for…
Q: NewB Company sells bags with a selling price of P10,000 per bag and a variable cost of P4,000 per…
A: a. Total cost function C(x) =F+V(x) C(x)= Total production cost F= Fixed costs V= Variable cost per…
Q: Company XYZ is producing and selling 2,500. At this level, the selling price per unit is $10, the…
A: To calculate the profit, fixed expenses and the total variable expenses will be deducted from the…
Q: Lara Sdn. Bhd. has a variable cost ratio of 0.56. The fixed cost is RM103,840 and 23,600 units are…
A: Formula break even point = fixed cost / contribution margin per unit Contribution margin per…
Q: Zachary Company reported the following data regarding the product it sells: Sales price Contribution…
A: Break even point = Fixed cost/Contribution margin ratio
Q: Lablanc Inc. sells a product for $60 per unit. The variable cost is $34 per unit, while fixed cost…
A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…
Q: From the following data, you are required to calculate 1) p/v ratio 2) break even sale with the…
A: Cost-volume-profit analysis is a technique which is used to determine the impact of costs and sales…
Q: Nicolas Enterprises sells a product for $56 per unit. The variable cost is $25 per unit, while fixed…
A: Formula: Break even point in sales units = Fixed cost / Contribution margin per unit
Q: The following information relates to the operations of a company; cost per unit from supplier-…
A: The breakeven number of units, is the quantity of products or services that a company needs to sell…
Q: Suppose a company has fixed costs of $47,600 and variable cost per unit of +222 dollars, where x is…
A: Honor Code: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: A company with P280,000 of fixed costs has the following data: Product A Product B Sales price per…
A: Break-even point can be defined as the point at which total cost and total revenue are equal. There…
Q: roblem: The Company has Sales of P420,000, a Contribution Margin Ratio of 40%, and Margin of Safety…
A: Solution Given Sale 420000 Contribution margin 40% Margin of safety 100000
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- 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.If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Their sales mix s reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $25,000 per year. What are total variable costs for Morris with their current product mix? Calculate the number of units of each product that will need to be sold in order for Morris to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.
- 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.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.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?
- 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.Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follows: Their sales mix is reflected in the ratio 4:4:1. If annual fixed costs shared by the three products are $1 8840 how many units of each product will need to be sold in order forJj to break even?Abilene Industries manufactures and sells three products (XX, W, and ZZ). The sales price and unit variable cost for the three products are as follows: Their sales mix is reflected as a ratio of 4:2:1. Annual fixed costs shared by the three products are $345.000 per year. What are total variable costs for Abilene with their current product mix? Calculate the number of units of each product that will need to be sold in order for Abilene to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.
- Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?The profit function for two products is: Profit3x12+42x13x22+48x2+700, where x1 represents units of production of product 1, and x2 represents units of production of product 2. Producing one unit of product 1 requires 4 labor-hours, and producing one unit of product 2 requires 6 labor-hours. Currently, 24 labor-hours are available. The cost of labor-hours is already factored into the profit function, but it is possible to schedule overtime at a premium of 5 per hour. a. Formulate an optimization problem that can be used to find the optimal production quantity of products 1 and 2 and the optimal number of overtime hours to schedule. b. Solve the optimization model you formulated in part (a). How much should be produced and how many overtime hours should be scheduled?Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Their sales mix is reflected in the ratio 7:3:2. If annual fixed costs shared by the three products are $196,200, how many units of each product will need to be sold in order for Salvador to break even?