The following data refer to Clear Panes, a division of Global Corporation. Clear Panes makes and sells residential windows that sell for $150 each. Clear Panes expects sales of 150,000 units in 2017. Clear Panes’ annual fixed costs are $2,750,000 and their variable cost is $90 per window. Global evaluates Clear Panes based on residual income. The total investment attributed to Clear Panes is $12 million and the required rate of return on investment is 16%. Ignore taxes and depreciation expense. Answer each of the following parts independently, unless otherwise stated. Q. What is the expected residual income in 2017?

(1) A company sells its products for $50 per unit. It has annual fixed cost of $300,000 and variable costs of $20 per unit. The company has a capacity to make 100,000 units per year. (a) How many units must be sold to breakeven? (b) What is the percentage of capacity at breakeven? (c) What is the profit at 25,000 units?

Sanchez & Ryan, Inc, sells a single product. This year, 20,000 units were sold resulting in $130,000 of sales revenue, $60,000 of variable costs, and $17,500 of fixed costs. If sales increase by $19,500 in a year, profits will increase by:

Ratchet Ltd expects to sell 30,000 units this year. The selling price is set at $25 per unit. The variable cost per unit is $12 and annual fixed cost is $345,000. Assume a tax rate of 28%.   Required: Calculate the following: Break-even point in dollars. Margin of safety in dollars. Number of units Ratchet Ltd has to sell to earn an after-tax profit of $420,000.

Sunn Company manufactures a single product that sells for $145 per unit and whose variable costs are $143 per unit. The company's annual fixed costs are $638,000. The sales manager predicts that next year's annual sales of the company's product will be 40,800 units at a price of $208 per unit. Variable costs are predicted to increase to $148 per unit, but fixed costs will remain at $638,000. What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for the next year. SUNN COMPANY Contribution Margin Income Statement $ per unit Contribution margin Units

The Titan Company provides you with the following information for the current year: Revenues = $2,000,000Cost of goods sold = $750,000  (2/3 of this amount varies with the number of units produced)S&A costs = $200,000 (1/2 of this amount is fixed)Selling price = $40 per unit The company sold 50,000 units of their product in the current year. The company expects unit sales of their product to increase 20% in the next year. Based on the information above, what would be the expected increase to profit before taxes in the coming year?

Memex Corp. manufactures memory expansion boards for microcomputers. The average selling price of its finished product is $240 per unit. The average variable cost per unit is $160. Memex incurs fixed costs of $1,920,000 per year. c-1. What will be the company's profit or loss at 26,000 units of sales for a year? (Click to select) is $ c-2. What will be the company's profit or loss at 23,500 units of sales for a year? (Input the value as positive number.) ✓ (Click to select) $ Profit Loss

A firm has the capacity to produce 599,374 units of a product each year. At present, it is operating at 21 percent of capacity. The firm's annual revenue is $1,054,613. Annual fixed costs are $346,003 and the variable costs are $.51 cents per unit.   The following equations will be useful. Profit = Revenue - Costs Revenue = Price each * quantity Costs = Fixed Cost + Variable Costs Variable Cost = Variable Cost per unit * number of units At the break even point, Profit = 0 What is the price for each unit?

Management believes it can sell a new product for $9.00. The fixed costs of production are estimated to be $7,000, and the variable costs are $3.40 a unit.   Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs. Round your answers to the nearest dollar. Enter zero if necessary. Use a minus sign to enter losses, if any.   Quantity Total Revenue Variable Costs Fixed Costs Total Costs Profits (Losses) 0   $   $   $   $   $   500   $   $   $   $   $   1,000   $   $   $   $   $   1,500   $   $   $   $   $   2,000   $   $   $   $   $   2,500   $   $   $   $   $   3,000   $   $   $   $   $     Determine the break-even level using the above table and use the Exhibit 19.5 to confirm the break-even level of output. Round your answers for the break-even level to the nearest whole number. Round your answers for the fixed costs, variable costs, total costs,…

Jasmine Inc. makes a single product that it sells for $25 each.  Variable costs are $13 per unit and annual fixed costs total $30,000 per year.  The company would like to realize operating income next year of $60,000.  What level of sales in dollars must the company achieve to reach its target profit?