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Q: Company XYZ currently produces and sells 40000 units. At this level, the total contribution margin…
A: Hi student Since there are multiple question, we will answer only first question.
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: I PDB Manufacturing Corp. produces and sells a single product. The selling price is P25 and the…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
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: Levi Company has revenues of P500,000, variable costs of P300,000, and pretax profit of P150,000. If…
A: Solution:- calculation of the new breakeven point (in pesos) as follows under:- The following…
Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…
A: Hi student Since there are multiple question, we will answer only first question.
Q: National Co.’s variable costs are 30% of sales. The company is contemplating an advertising campaign…
A: Variable costs are those costs which changes with change in activity level. Fixed costs are costs…
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: NUBD is planning to sell 100,000 units of Product Excellence for P12 per unit. The fixed costs ratio…
A:
Q: A firm uses simple linear regression to forecast the costs for its main product line. If fixed costs…
A: Identify total cost equation.
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: 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: ABC Company manufactures the product XE-17. The product is sold at a unit price of $70. Variable…
A: Break-even point is the point of the entity where it is incurring or earning no loss or profit…
Q: annually , at a price of ( 65 S / unit ) . The company wanted to explore the possibility of…
A: in order to find out the require profit the formula that is used is fixed cost is added by profit…
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: In its first year of operations, a firm had P50,000 of fixed operating costs. it sold 10,000 units…
A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…
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: Product A has a selling price of P50 per unit and variable expenses of P30 per unit. If the company…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
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: A company expects to sell 30,000 units of a product next year. Variable production cost is ₱25 and…
A: Number of units = 30,000 Variable Cost per unit = 25 Variable Production Costs = Variable Cost per…
Q: a. What is the company's variable cost ratio b. How much is fixed costs of the new BES level?
A: Break even point = Fixed cost/ PV ratio. PV ratio = Sales - Cost to volume ratio. In…
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: 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 is the difference between the actual sales for the current period and the break…
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: Ratchet Ltd expects to sell 30,000 units this year. The selling price is set at $25 per unit. The…
A: Cost volume profit analysis is useful to find out the different sales volume on the basis of…
Q: A company makes a product with a selling price of $20 per unit and variable costs of $12 12 per…
A: Calculate contribution margin per unit:
Q: A firm has fixed operating costs of $100,000 and variable costs of$4 per unit. If it sells the…
A: The formula to compute break-even quantity:
Q: m has the capacity to produce 650,000 units of a certain product per year (max capacity). At,…
A: ANSWER: Given- Annual Fixed Cost =P1,920,000 Variable Cost =P3.50 Per Unit…
Q: A firm has the capacity to produce 599,374 units of a product each year. At present, it is operating…
A: Break-even point:- Break-even point is defined as the point on which the cost of production is equal…
Q: Q1: A company sells 280,000 units annually, at a price of (65 $/unit). The company wanted to explore…
A: The units are determined by the company and by selling those number of units in a year the company…
Q: Belowis an income statement for NUBD Company P400,000 (120.000) Contribution margin P280,000…
A: The net income is calculated as difference between sales revenue and total costs.
Q: Sales volume for a company is million dollars per month. If the company spends $350,000 per month as…
A: The break-even point: The break-even sales or point refers to the level of sales where the…
Q: The National Inc. will produce 5,000 boxes of chocolates next year. Variable costs is 60% of sales,…
A: The question is related to Marginal Costing. The details are given as under Fixed Cost = P160000…
Q: A firm has fixed costs of P200,000 and variable costs per unit of P6. It plans on selling 40,000…
A: Target profit before tax = P24,000/(100%-40%) Target profit before tax = P24,000/60% Target profit…
Q: What is the company’s break-even point in sales dollars?
A: Contribution per unit = Selling price per unit - Variable cost per unit Break Even point ( units ) =…
Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…
A: Current net profit Net Profit = Contribution margin - Fixed cost Net Profit =…
Q: A certain firm has the capacity to produce 650,000 units of product per year. At present, it is…
A: Profit = Revenue-Expenses
Q: The following are data from a production, calculate; The Break-even point in tenns of sales value…
A: In Marginal Costing break-even analysis technique is used to ascertain…
Q: A company expects to sell 20,000 units of a product next year. Variable production cost is ₱15 and…
A: Given, Target profit of the firm ₱100,000. Number of units 20,000. Fixed expenses ₱250,000.
Q: Last year, the contribution margin ratio of Lamesa company was 30%. this year, fixed costs are…
A: The contribution margin is calculated as difference between sales and variable costs.
Q: A company with fixed costs of P40,000 is now breaking even on sales of P160,000. How much income…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: A company has set its initial selling price at $28 per unit. Its variable manufacturing costs are…
A: (Note: Since you have posted a multi-part question, we will solve the first three parts for you. For…
Q: The BEP Company plans to market a new product. Based on its market studies, it estimates that it…
A: Break-even point is the level of sales at which the net operating profit is zero. In other words,…
Q: A plant has a capacity of producing 80T units per year of a product which it sells for P20.00 per…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Opportunity Co. produced and sold 6,000 units for $12 per unit. The variable cost was $3 per unit,…
A: Given that, units sold = 6000 sales per unit = $12 Variable cost per unit = $3 Net income = $27000…
Q: ABC Ltd produces a single product. The selling price is OMR 50 a unit and the variable costs is OMR…
A: The entity can achieve its target profit of OMR 10,000 by selling a sufficient number of units on…
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: 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: National Co. has revenue of P500,000, variable costs of P300,000 and pretax profit of P150,000. If…
A: Answer) Calculation of New Break-eve Point New Break-even Point = Revised Fixed Cost/ Revised…
Q: n organization's break-even point is 4,000 units at a sales price of $50 per unit, variable cost of…
A: Step 1 Break even point is the production level at which total revenues for a product equal total…
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- 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?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. 2,000Schylar 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 245,000
- 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.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?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.
- Company A has current sales of $10,000,000 and a 45% contribution margin. Its fixed costs are $3,000,000. Company B is a service firm with current service revenue of $5,000,000 and a 20% contribution margin. Company Bs fixed costs are $500,000. Compute the degree of operating leverage for both companies. Which company will benefit most from a 25% increase in sales? Explain why.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.Baghdad Company produces a single product. They have recently received the result of a market survey that indicates that they can increase the retail price of their product by 10% without losing customers or market share. All other costs will remain unchanged. If they enact the 10% price increase, what will be their new break-even point in units and dollars? Their most recent CVP analysis is:
- 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.Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and their product has a per-unit contribution margin of $250, how many units must they sell to reach their target income? A.20 B. 40 C. 60 D. 120
