The East Division of Abel Company reported the following information for 2025: Variable costs per unit .... Average operating assets Return on investment ..... Margin ...... Minimum required rate of return Sales (in units) ..... $10 $425,000 18% 30% 11% . 15,000 units The management of Abel Company is beginning to budget for 2026 and would like answers to some what-if scenarios. Calculate the number of units the East Division needed to sell in 2025 in order for its residual income to be 50% larger than what was reported.
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- The management of Lambda Corporation has received the Notifications following forecast for the next year. Sales revenue $600 000 Fixed cost Vanable cost $275 000 270 000 Total cost Net income 545 000 $55 000 Capacity is a sales volume of $800 000. CASE STUDY 217 (a) Compute (1) the contribution margin: (1) the contribution rate. (b) Compute the break-even point (i) in dollars. (1) as a percent of capacity. (c) Determine the break-even volume in dollars it fixed cost is increased by 540 000, while variable cost is helo to 40% of3. The management of Lambda Corporation has received the following forecast for the next year. Sales revenue $600,000Fixed costs $275,000Variable costs 270,000Total costs 545,000Net income $ 55,000 Capacity is a sales volume of $800,000.a. Computei. the contribution margin ii.the contribution rate. b. Compute the break-even pointi. in dollars; ii. as a percent of capacity. c. Determine the break-even volume in dollars if fixed costs are increased by $40,000, while variable costs are held to 40% of sales.The Atlantic Division of Oriole Productions Company reported the following results for 2022: Sales Variable costs Controllable fixed costs Average operating assets Management is considering the following independent alternative courses of action in 2023 in order to maximize the return on investment for the division. 1. 2. 3. (a) $4,032,000 3,213,504 314,000 2,514,000 Reduce controllable fixed costs by 10% with no change in sales or variable costs.. Reduce average operating assets by 10% with no change in controllable margin. Increase sales $500,000 with no change in the contribution margin percentage. Compute the return on investment for 2022. (Round answer to 1 decimal place, e.g. 52.5.) Return on Investment Save for Later % Attempts: 0 of 1 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Submit Answer
- Matipid Division of Expenditures Company expects the following results for 2019:Unit sales 70,000Unit selling price P10Unit variable cost P4Total fixed costs P300,000Total investment P500,000The minimum required ROI is 15 percent, and divisions are evaluated on residual income. A foreign customer has approached Matipid’s manager with an offer to buy 10,000 units at P7 each. If Matipid accepts the order, it would not lose any of the 70,000 units at the regular price. Accepting the order would increase fixed costs by P10,000 and investment by P40,000.What is the minimum price that Matipid could accept for the order and still maintain its expected residual income?Suppose that a company expects the following financial results from a project during its first-year operation: Sales revenue: $300,000 Variable costs: $100,000 Fixed costs: $50,000 Total unit produced and sold: 10,000 units a. Draw and label a break-even point graph. b. Compute the contribution per unit. c. Compute the break-even point in units sold. d. Compute the profit be if only 7500 units are soldUse the information given below to calculate each of the following independently 3.1 Expected total Marginal Income and Net Profit/Loss Slumber Limited manufactures beds. The following information was extracted from the budget for 2024:Expected production and sales (units) 1 200Selling price per bed R6 000Direct materials cost per bed R1 700Direct labour cost per bed R860Variable manufacturing overheads cost per bed R320Fixed manufacturing overheads cost R1 084 800Sales commission (as a percentage of the selling price) 20%Fixed administrative and selling costs R720 000 PLEASE PUT THE ANSWER IN RANDS
- Use the information given below to calculate each of the following independently 3.4 Break-even value using the marginal income ratio, if the company spends an additionalR435 200 on salaries INFORMATIONSlumber Limited manufactures beds. The following information was extracted from the budget for 2024:Expected production and sales (units) 1 200Selling price per bed R6 000Direct materials cost per bed R1 700Direct labour cost per bed R860Variable manufacturing overheads cost per bed R320Fixed manufacturing overheads cost R1 084 800Sales commission (as a percentage of the selling price) 20%Fixed administrative and selling costs R720 000 PLEASE PUT THE ANSWER IN RANDSHarrison Company expects to sell 180,000 units of its product next year, which would generate total sales of $14,940,000. Management predicts that income for next year will be $1,230,000 and that the contribution margin per unit will be $27. Complete the below table to calculate the next year's expected variable costs and fixed costs. HARRISON COMPANY Forecasted Contribution Margin Income Statement Units $ per unit Contribution margin 180,000 27Company A reported the following results for 2021: Sales $4,000,000 Variable costs 3,200,000 Controllable fixed costs 300,000 Average operating assets 2,500,000 Management is considering the following independent alternative courses of action in 2022 in order to maximize the return on investment for the division. Reduce controllable fixed costs by 10% with no change in sales or variable Reduce average operating assets by 10% with no change in controllable Increase sales $500,000 with no change in the contribution margin Instructions Compute the return on investment for 2021 Compute the expected return on investment for each of the alternative courses of action
- Company A reported the following results for 2021:Sales $4,000,000Variable costs 3,200,000Controllable fixed costs 300,000Average operating assets 2,500,000 Management is considering the following independent alternative courses of action in 2022 in order to maximize the return on investment for the division.1. Reduce controllable fixed costs by 10% with no change in sales or variable costs.2. Reduce average operating assets by 10% with no change in controllable margin.3. Increase sales $500,000 with no change in the contribution margin percentage.Instructions(a) Compute the return on investment for 2021.(b) Compute the expected return on investment for each of the alternative courses of action.Spartans Inc gathered data on sales (in units) and costs ($) over the past 12 months (displayed below) and estimated its cost function as: Y = $2,395 + $34.81(X) Month January February March April May June July August September October November Sales (units) December 228 129 218 156 177 68 129 83 90 107 139 Costs ($) $10,332 $8,651 $11,294 $9,734 $10,006 $4,762 $6,837 $5,138 $8,004 $7,774 $10,869 $6,935 98 (data used to generate cost function) Over the next three months Spartans Inc. has forecasted units sales (in units) as shown below. Estimate the total costs to be incurred and indicate whether the cost function generates a reliable forecast valueViolet Sales Corp, reports the year-end information from 2023 as follows: Sales (35,500 units) $284,000 Cost of goods sold 105,000 Gross margin 179,000 Operating expenses 152,000 Operating income $27,000 Violet is developing the 2024 budget. In 2024 the company would like to increase selling prices by 3.5%, and as a result expects a decrease in sales volume of 14%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. What is budgeted sales for 2024?