The Blue Co. will produce 25,000 units of product next year. Variable costs ratio is 70%, while fixed costs will total P85,000. The price of each unit to be sold by the firm to achieve an EBIT of P60,000 is *
Q: Green Corporation expects to sell 3,000 plants a month. Its operations manager estimated the…
A: Contribution required = P 15000/ P 3000 Contribution required = P5 per plant Variable cost per plant…
Q: For the coming year, Belton Company estimates fixed costs of $60,000, the unit variable cost of $25,…
A: Break-even point: It implies to a level of production at which the business incurs no losses or…
Q: What would be the total contribution to profit to the company as a whole for 10,000 units…
A: Selling Price for 10,000 units (10,000 * P21) P2,10,000 Relevant Cost: Variable cost of…
Q: Each of two similar companies has sales of $20,000 and total costs of $15,000 for a month. Company…
A: Contribution Margin: It is defined as the difference between the sales and the variable cost. In…
Q: A firm has the capacity to produce 1,000,000 units of a product per year. At present, it is able to…
A: Break-even is the point wherein the company is in a situation of no profit no loss.
Q: For XYZ Company, how many units of their product would have to be sold to yield a target operating…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: A certain company has the capacity to produce 500,000 units of a product yearly. This year, the…
A: Answer - Formula for Break even Point - Break even Point = Fixed Cost/ (Sales price per unit -…
Q: If the company has a target profit of $15,000, how many units must be sold
A: Breakeven point: Breakeven point is the point at which the company makes no profit nor loss or it is…
Q: The Ronowski Company has three product lines of belts—A, B, and C— with contribution margins of $3,…
A: Operating income: Income statement reports revenues and expenses from business operations, and the…
Q: For the coming year, Cleves Company anticipates a unit selling price of $80, a unit variabie cost of…
A: Formula: Break even sales units = Fixed cost / Unit contribution margin
Q: A company expects to sell 30,000 units of a product next year. Variable production cost is ₱25 and…
A: Units = 30,000 Selling price = P Sales = 30000*P = 30000P Variable cost = P 25 Variable cost =…
Q: Barometers sell for $300 each. Variable costs are $200 per unit, fixed production costs are $2,000,…
A: Profit is the excess of revenue over cost. Profit can be found out by deducting cost price from…
Q: A certain firm has the capacity to produce 650 000 units of a certain product per year. At present,…
A: Capactity - 6,50,000 units Operating capacity - 62% Annual Income PhP 41,95,000 Annual Fixed Costs -…
Q: Elkins, a manufacturer of ice makers, realizes a cost of $250 for every unit it pro- duces. Its…
A: The conceptual formula used:
Q: On the average, a company has a work-in-process lead time of 10 weeks and annual cost of goods sold…
A: Work in process (WIP), work in advance (WIP), merchandise in preparation, or in-process stock are a…
Q: plant operation has fixed costs of ₱2,000,000 per year, and its output capacity is 100,000…
A:
Q: For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of…
A: a) Prepare Break-even chart: 4800 units Operating Loss area 12000 units Break-even point…
Q: Tamarisk Inc is a company that manufactures and sells a single product. Unit sales for each of the…
A: Profitability means revenue minus expenses, whatever is left over is the profit. Businesses can’t…
Q: Farrow Co. expects to sell 150,000 units of its product in the next period with the following…
A: Incremental income refers to the extra incomes from an extra quantity sold. It is like marginal…
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: The Price Company will produce 55,000 widgets next year. Variable costs will equal 40 percent of…
A: Solution:- Earnings before interest and taxes (EBIT) means the operating income of an entity before…
Q: CCC Company produce 15,000 units. It estimates the following operating costs for next year:…
A: Given that: Capital invested = $900,000 Target return on investment = 25%
Q: For the coming year, Cleves Company anticipates a unit selling price of $100, a unit variable cost…
A: Step 1: Workings
Q: John's Company owns three production lines A, B, and C, and each production line achieves a…
A: Break Even Point Under Multiplicity of Product means the total quantity of units sold of each…
Q: The Ronowski Company has three product lines of belts—A, B, and C— with contribution margins of $3,…
A:
Q: Happy Face Company has fixed cost of P500,000 per year, variable.cost of P30 per unit, and a selling…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three subparts…
Q: The fixed costs at Harley Motors are $1 million annually. The main product has revenue of $9.90 per…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: A company has $25 per unit selling price, $7.00 per unit in variable manufacturing cost and $2.00…
A:
Q: Mix Electronics purchases 2,400,000 units per year of a component with a purchase price of P50. The…
A: EOQ formula: EOQ = [2*d*s/h]^0.5 where d = annual quantity = 2,400,000 s = cost per order = 15 h =…
Q: Assume Sparkle Co. expects to sell 150 units next month. The unit sales price is $90, unit variable…
A: Contribution Margin = ( Unit Sales Price - Unit Variable Cost ) x Number of units Net profit=…
Q: The National Inc. will produce 5,000 boxes of chocolates next year. Variable costs is 60% of sales,…
A: The correct calculation of the above question is given in the following steps for your reference.
Q: Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is…
A: New sales = Current sales + Current sales x 10% = $11700,000 + $11700,000 x 10% = $12,870,000 New…
Q: A business produces a product that's sold for £30 each. Variable costs are £12 for each product an…
A: Introduction:- The following Formula used to calculate as follows under:- Units required =(Fixed…
Q: Jasmine Inc. makes a single product that it sells for $25 each. Variable costs are $13 per unit and…
A: Contribution margin is sales revenue over and above it's variable costs. In order to earn target…
Q: Alice's company has a machine that can produce a maximum of 2722 components annually. She sells each…
A: a) Break even components=Fixed costs/Contribution margin per unit Fixed costs=$35,120 Contribution…
Q: For XYZ Company, how many units of their product would have to be sold to yield a target operating…
A: Contribution margin per unit = sales - variable costs = 65 - 50 = $15 per unit
Q: markup percentage, using the product cost concept
A: Particulars Amount in $ Variable product cost 100000 units@$15 1500000 Fixed product cost…
Q: Blossom Footballs, Inc., management expects to sell 15,000 balls this year. The balls sell for $105…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: Funtastic Company has capacity for the production and sales of 30,000 units. Current production is…
A: Fixed cost: It refers to the cost that remains constant and does not change with a change in the…
Q: Pankey Inc. has a $700,000 investment opportunity that would involve sales of $1,050,000, a…
A: Contribution = Sales x contribution margin ratio Operating Income = Contribution - Fixed expenses…
Q: Krismuch Co. estimated that the company can sell 200,000 units of a product next period and earn a…
A: The price of the product per unit = P14.7 Refer step2 for explanation
Q: For the current year ending October 31, Papadakis Company expects fixed costs of $530,200, a unit…
A: In this numerical has covered the concept of Cost volume Profit Analysis . Break even point is point…
Q: For the coming year, Bernardino Company anticipates a unit selling price of $85, a unit variable…
A: Break-even analysis is the easiest form of cost-volume-profit analysis. Break-even analysis is used…
Q: Nothern Company manufactures and sells a single product that it sells for $90 per unit and has a…
A: 1.Answer to the above question is 2,600 units if $ 46,800 is monthly fixed cost. 2. If $ 46,800 is…
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: A company has a production capacity of 580 units per month and its fixed cost is P185,000 a month.…
A: The Break-even point indicates that total units are to be sold by the business entity to recover its…
Q: The selling price of a product has been set at $300 per unit, and at that price the company expects…
A: Target costing is one of costing technique in which target costs are being determined on the basis…
Q: Gilberto Company currently manufactures 66,000 units per year of one of its crucial parts. Variable…
A: Incremental cost: Incremental cost is the analysis of the costs in different avenues, which could be…
Step by step
Solved in 4 steps
- 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 245,000Faldo 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?Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs per gas grill are 225, and the average price per gas grill is 600. Required: 1. How many gas grills must Gelbart Company sell to break even? 2. If Gelbart Company sells 46,775 gas grills in a year, what is the operating income? 3. If Gelbart Companys variable costs increase to 240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?
- 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.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.
- 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.Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are $600,000. Company B is a service firm with current service revenue of $2,800,000 and a 15% contribution margin. Company Bs fixed costs are $375,000. Compute the degree of operating leverage for both companies. Which company will benefit most from a 15% increase in sales? Explain why.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. 2,000
- 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?Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)Wellington, Inc., reports the following contribution margin income statement for the month of May. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $10 but will increase fixed costs by 20%. Prepare a projected contribution margin income statement for Wellington, Inc., assuming it purchases the new equipment. Assume sales level remains unchanged.