Swifty Corporation is planning to sell 810000 units for $1.50 per unit. The contribution margin ratio is 20% . If Swifty will break even at this level of sales, what are the fixed costs? O $810000 $567000. O $930000. $243000.
Q: NUBD has fixed costs of P160,000. At a sales volume of P400,000, return on sales is 10%; at P500,000…
A: Solution: Net income at Sales volume of P400,000 = P400,000 * 10% = P40,000 Net income at Sales…
Q: A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are…
A: Break-even point: It can be defined as that level of production at which the total costs incurred by…
Q: Vaughn Manufacturing sells radios for $50 per unit. The fixed costs are $425000 and the variable…
A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…
Q: A company is considering a project with a breakeven point of 18,000 units. The selling price is $22…
A: Formula:
Q: Mazoon Company is producing 30000 units every year and making a profit of RO 450000. The company…
A: Degree of Operating Leverage = Contribution margin/ Net Income
Q: FRT Company sells each unit for $ 60, variable costs for each unit $ 25, Fixed costs $ 200000 Wants…
A: Contribution means the difference between the selling price and variable cost . Fixed cost remain…
Q: Jarvis Company produces a product that has a selling price of $20.00 and a variable cost of $15.00…
A: Contribution margin per unit = sales price - variable cost = $20 - $15 = $5 per unit Contribution…
Q: Kyle Inc. is planning to sell 197,500 units of Product K. The fixed costs are P1,200,000 and the…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: An organization's break-even point is 4,000 units at a sales price of P50 per unit, variable cost of…
A: Given: Selling price = P50 Variable cost = P30 Additional units sold = 500 Fixed cost = P80,000
Q: Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $8 while…
A: Current sales = 20000 units Selling Price per unit = $8 Variable Cost Ratio = 20% Fixed Costs…
Q: NUBD Company is planning to produce two products, X and Y. NUBD is planning to sell 100,000 units of…
A: Profit = Sales Revenue - Total Variable costs - Total Fixed costs We know that variable costs…
Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…
A: Units produced and sold = 40,000 Contribution margin = $320,000 Fixed cost = $80,000 Increase in net…
Q: Orchid Corp. has a selling price of $15, variable costs of $10 per unit, and fixed costs of $25,000.…
A: Contribution margin is difference of Sales and variable costs Contribution Margin = Sales Revenue…
Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: Sweet Manufacturing is planning to sell 400,000 hammers for $3 per unit. The contribution margin…
A: Contribution margin per unit = Sales x Contribution margin ratio = $3 per unit x 20% = $0.60 per…
Q: NUBD is planning to sell 100,000 units of Product Excellence for P12 per unit. The fixed costs ratio…
A: Total sales value=100000*12=1200000 Fixed cost=1200000*25%=300000
Q: Johnston Company wants to double production of Product X from 1,000 units to 2,000 units. The…
A: Incremental net operating income is the change in the operating income due to change in the units…
Q: What is the break-even volume?
A: In order to calculate breakeven point, we need to calculate contribution. To calculate contribution…
Q: Jack’s Jax has total fixed costs of $25,000. If the company’s contribution margin is 60%, the income…
A: Given that, total fixed costs of $25,000 company’s contribution margin is 60% the income tax rate…
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: Summersville Production Company had the following projected information for the current year:…
A: Formula: Break even point in units = Fixed cost / ( Selling price per unit - variable cost per unit…
Q: In the upcoming year, NUBD estimates that it will produce and sell 4,000 units. The variable costs…
A: Analysis: As per Marginal costing, Margin of safety is the difference between Total sales Amount and…
Q: Drape Corp. would like to market a new product at a selling price of P15 per unit. Fixed costs for…
A: Contribution margin per unit = P15 x 35% = P5.25
Q: The manufacturer of a product that has a variable cost of $2.50 per unit and total fixed cost of…
A: The break-even point (BEP) appears to be an accounting term that refers to the point where a…
Q: Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $7 while…
A: It is pertinent to note that margin of safety is the additional sales made by the entity over and…
Q: how many units must Tony sell to breakeven?
A: Breakeven sales is the sales at which there is no profit or no loss. Breakeven point = Fixed cost/…
Q: Mazoon Company's variable costs are 75% of the selling price and its fixed costs are $80,000. To…
A: As per CVP equation, Contribution margin ratio = 1 - variable cost ratio Fixed costs + Profits =…
Q: A firm expects to sell 25,700 units of its product at $11.70 per unit and to incur variable costs…
A: Cost-volume-profit analysis is a technique that is used to determine the impact of costs and sales…
Q: A company needs to sell 10,000 units of its only product in order to break even. Fixed costs are…
A: Margin of Safety: The break-even point reflects the level of sales volume where no profit or loss is…
Q: Koda electronics has the details of one of its product "X" with annual fixed cost of P150,000. Its…
A: Annual fixed cost=P150,000 Selling price per unit=P30 Variable cost=P15 Contribution per unit =…
Q: Bozo Company has total costs of $90,000 when it sells 20,000 units. If total fixed costs are…
A: The total cost of product= $ 90000 Total fixed cost= $ 30000 Total variable cost= Total cost- total…
Q: NUBD Company manufactures a face masks that sells for P10 per unit. This is its sole product and it…
A: Break Even Point = Total Fixed CostContribution Per Unit 50,000 units =…
Q: costs of P120,000. At a sales volume of P400,000, return on sales is 10%; at a P600,000 volume,…
A: Breakeven sales volume is the amount of your product that must be manufactured and sold in order to…
Q: NUBD Company is planning to produce two products, X and Y. NUBD is planning to sell 100,000 units of…
A: Formula: Contribution margin = Sales - variable cost
Q: A company needs to sell 10,000 units of its only product in order to break even. Fixed costs are…
A: The correct answer is Option (2).
Q: Solomon company has total fixed cost of $15,000, variable cost per unit of $6, and a price of $8. If…
A: Units required to earn Targeted profits can be calculated by the formula as follows, =(Total fixed…
Q: If the objective of the firm is to get 25% profit, how many units does the firm need to sell if the…
A: Unit Contribution margin = Unit selling price x Contribution margin ratio
Q: A product sells for $30 per unit and has variable costs of $20 per unit. The fixed costs are…
A: Expected Contribution margin per unit = Expected sales price per unit - Expected variable cost per…
Q: Mueller Corp. manufactures flash drives that sell for $5.00. Fixed costs are $28,000 and variable…
A: Answer: Given, Fixed cost TFC $28,000 Variable cost UVC $3.60 per unit Selling price SP $5 per unit…
Q: NUBD Company manufactures a face masks that sells for P10 per unit. This is its sole product and it…
A: Solution: Contribution margin per unit = Fixed costs / Breakeven units = P100,000 / 50000 = P2 per…
Q: At the break-even point of 2600 units, variable costs are $56000, and fixed costs are $35000. How…
A: At break even level, there is no profit and no loss. Accordingly sales revenue is equal to the total…
Q: Sooner Industries charges a price of $88 and has fixed cost of $301,000. Next year, Sooner expects…
A: Net operating income = Contribution margin - Fixed costs Contribution margin = Net operating income…
Q: Ace Company manufactures a western-style hat that sells for P10 per unit. This is its sole product…
A: Break Even Point ( In units ) = Fixed cost Contribution per unit…
Q: The Blue Co. will produce 25,000 units of product next year. Variable costs ratio is 70%, while…
A: Number of units = 25,000 Variable cost ratio = 70% Fixed cost = P 85,000 EBIT = P 60,000 Price =…
Q: A bike manufacturing company has fixed costs of $130,000 per annum and the variable costs are 36% of…
A: Old contribution margin ratio = 100% - 36% Old contribution margin ratio = 64%
Q: Dishman Ltd plans to sell 200,000 items a year for £15 each. Fixed costs are £360,000 a year and…
A: Margin of Safety:- It is the difference in the intrinsic value and the market value of the stock. It…
Q: Darigold, Inc. sells Product M for P5 per unit. The fixed cost is P210,000 and the variable cost is…
A: Cost-volume-profit (CVP) analysis is an important and systematic method which provides useful…
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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.Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000If 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. 2,000
- 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?Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.
- Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.Shelby Industries has a capacity to produce 45.000 oak shelves per year and is currently selling 40,000 shelves for $32 each. Martin Hardwoods has approached Shelby about buying 1,200 shelves for a new project and is willing to pay $26 each. The shelves can be packaged in bulk; this saves Shelby $1.50 per shelf compared to the normal packaging cost. Shelves have a unit variable cost of $27 with fixed costs of $350,000. Because the shelves dont require packaging, the unit variable costs for the special order will drop from $27 per shelf to $25.50 per shelf. Shelby has enough idle capacity to accept the contract. What is the minimum price per shelf that Shelby should accept for this special order?Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.
- Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.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?Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shell. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320.000. However, the $130 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order? A. Profits will decrease by $1,200. B. Profits will increase by $31,200. C. Profits will increase by $600. D. Profits will increase by $7,200.
