The Mandaue Furniture produces tables. The fixed monthly cost of production is P8,000, and the variable cost per table is P65. The tables sell for P180 per piece. a. For a monthly volume of 300 tables, determine the total cost, total revenue, and profit. b. Determine the monthly break-even volume for the Mandaue Furniture.
Q: As a finance manager in a company, you considering purchasing a call option on the stock of Crude…
A: An option is a financial instrument whose value is calculated on the basis of underlying securities.…
Q: Awal Co. has a proposed project that will generate sales of 1419units annually at a selling price of…
A: Cash flows are the cash generated from the operation of the business organisation. In other words,…
Q: Marian Plunket owns her own business and is considering an investment. If she undertakes the…
A: Year 0 cash flow = - $10,000 Year 1 cash flow = $40,000 Year 2 cash flow = - $10,000 (i.e. $40,000 -…
Q: Company X reported the following information for the last fiscal year. COMPANY X Assets As of…
A: Given, The sales are USD 800000 Cost of goods sold 380000
Q: onesia is one of the most prestigious companies providing holiday travel packages to tourism…
A: When comparing different projects or in instances where determining a discount rate is problematic,…
Q: The effective interest rate over this period equals ...
A: Effective Interest Rate: It refers to the annual rate of interest which takes into account the…
Q: Trying to buy a new house. (1) In the case of paying $200,000 in a lump sum plus $1,000 in…
A: To evaluate the given options, we shall first calculate the present value of both and accordingly…
Q: What is the difference between a mutually exclusive project/investment and an independent…
A:
Q: The amount you will have at the end of 30 years will be $ (Round to the nearest dollar.)
A: Future Value of Annuity: It represents the future worth of the present annuity stream of cash flow.…
Q: (a) An MNC has total assets of $150 million and debt of $50 million. firm's before-tax cost of debt…
A: Weighted average cost of capital is the weighted cost of debt and weighted cost of equity and is…
Q: A washer- dryer combination listed at $ 1136 has a net price of $ 760. What is the rate of discount?
A: Discount is the amount which deducts from the listed price of the commodity or any good. Rate of…
Q: Finance A borrower takes out a 30-year mortgage loan (with monthly payments) for $300,000 with an…
A: A discount point: A discount point is earned by paying 1% of the mortgage value. It typically…
Q: Present value of an uneven stream of payments) You are given three investment alternatives to…
A: Present value of Investment is calculated with the help of cash flows and discount rate. The cash…
Q: Fire Hydrant Pet Supply just paid its first annual dividend of $0.75 a share. The firm plans to…
A: The cost of equity is the percentage cost of raising the fund through equity. It is the annual cost…
Q: Q37 Board Company's direct labor information for February is as follows: Direct labor hours…
A: First, we will calculate the standard rate using the unfavorable variance, after that, we calculate…
Q: During a software project Earned Value. Analysis is performed and gives the following results EV:…
A: An earned value analysis of the project is performed by the managers so that the managers can…
Q: The cost of equipment is PHP 50857 and the cost of installation is PHP 35878. If the salvage value…
A: Sinking fund method of depreciation In case of sinking fund method of depreciation, a fixed…
Q: Please answer immediately. A certain equipment has a first cost of P 12,000 and a salvage value of…
A: Sinking fund method is a method to provide a depreciation by considering a discount rate. This…
Q: st borrowed $267,000 at 2.125%for 15-years.My lender is looking to sell my loan and the market rate…
A: The loans are paid by the monthly regular payments that carry the payment for principal amount and…
Q: Winston Company had two products code named X and Y. The firm had the following budget for August:…
A: we will apply the formula for calculating the price variance. We will calculate the per-unit price…
Q: Juan invested an amount of $16,000.00 in a mutual fund. After 3 years and 6 months the accumulated…
A: Invested Amount $ 16,000.00 Future Value $…
Q: Portfolio diversification does not affect the variability of returns of an individual stock held in…
A: True. Portfolio diversification does not affect the variability of returns of an individual stock…
Q: Find i (the rate per period) and n (the number of periods) for the following annuity. Annual…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: In the aggressive approach to current asset financing, a. fixed assets and permanent current assets…
A: A company's asset financing strategy may be aggressive. The firm is said to be following an…
Q: A payment of $2,690 was due two years ago, and a payment of $1,650 is due today. What single payment…
A: Payment due two years ago $2,690 Payment due now is $1,650 Interest rate is 5.25% compounded…
Q: What are Fidelity Investments?
A: Investments are referred to as the asset or item which is acquired with the aim of generating…
Q: Times-Interest-Earned Ratio The Morrit Corporation has $480,000 of debt outstanding, and it pays an…
A: Ratio analysis is defined as an quantitative method for gaining an insight into the liquidity of the…
Q: Superior Cement Company has an 8 percent preferred stock issue ou share having a $100 face value.…
A: Preferred carry the fixed payment of dividends that are to be paid regularly on face value but the…
Q: D4) An investor has total wealth of $50,000 and wants to invest in a portfolio with 3 securities A,…
A: A portfolio is a mix of different securities in different industries. It is advised to maintain a…
Q: Evaluate the following statement: If CAPM (Capital Asset Pricing Model) holds, the expected return…
A: CAPM or Capital Asset Pricing Model is the formula that represents the relationship between the…
Q: Ten years ago, you deposited P5400 per month. You made the deposit for 6 years and then stopped. 4…
A: Calculations are done in excel so there is no intermediate rounding effective monthly interest rate…
Q: corporation,dividend,limited liability,over-the counter market,stock exchange and stock market index
A: In finance we often hear the words corporation, dividends, limited liability etc. These are all…
Q: Sandra has just purchased Insidia Ltd bonds.Using the following information at the time of the…
A: Nominal coupon rate: It is the stated interest rate on bond and is calculated by dividing sum of…
Q: What is CAPM and how it used in portfolio management?
A: Risk and return are the two main parts of any investment and before investing in any security or…
Q: Ed Long promised to pay his son $370 semiannually for 11 years. Assume Ed can invest his money at 4%…
A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…
Q: Vincent invested his savings into a Registered Retirement Savings Plan (RRSP) at an interest rate of…
A: Interest Rate(Compounded semi-annually) 3.50% Future Value After 1 Year $…
Q: How does short-term financing differ from long-term financing? Give two business uses for each type…
A: Short term financing refers to financial requirements for a period of less than 1 year. In other…
Q: John bought a car with cash value of P15,294 on the installment plan under the following terms:…
A: Annuity: An annuity is the series of payments which is received or paid for a certain period of…
Q: What is the essence of sound financial management to the procurement manager.
A: Financial management Financial management is strategic planning, organising, directing, and…
Q: al trade and capital flows between U.S and Italy. U.S. exports soft drinks to France and imports…
A: There are international trades between the countries but each government try to protect the business…
Q: Problem 3. Humble Manufacturing is interested in measuring its overall cost of capital. The firm is…
A: Financing is referred to as the process of providing finance or funds to the business through…
Q: Tokyo Corporation must pay one of its suppliers P765,000. The bank requires a 15 percent…
A: Banks and financial organizations often lend money to various businesses, clients, and investors in…
Q: The 14 year $1000 par bond pays 7 percent interest annually. Market price $945 What is the bond…
A: Par value = $1000 Coupon rate = 7% Coupon amount = 1000*0.07 = $70 Years to maturity = 14 Years Bond…
Q: STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31 2020 2019 2018 Turnover…
A: Financial Ratios There are different types of financial ratios. These ratios are used to evaluate…
Q: Zietlow Corporation has 2.1 million shares of common stock outstanding with a book value per share…
A: The weighted average cost of capital is the discount rate used to evaluate a project which is…
Q: What is the logic behind the concept of time value of money, and what comes to your mind once as…
A: It means money has time value. A dollar today is more valuable than a dollar a year hence. Rate of…
Q: 7. A public decision-maker has a budget of $100 which must be spent in the current year. Three…
A: Capital Budgeting: It is the process an enterprise undertake to analyse potential major projects…
Q: ► 1. Consider projects A and B and a cost of capital of 10%. Use the profitability index to select…
A: The profitability index is an index that depicts the relationship between a proposed project's…
Q: a barbeque is listed for $700.48 less 48% , 18% and 6%
A: This is a case of successive discounts. Successive discounts means discount on discount. In other…
Q: Use the FV formula for an ordinary annuity to calculate the future value of investing $507 a month…
A: Future Value of Ordinary Annuity refers to the concept which dictates the compounded value of a sum…
TYPEWRITTEN ONLY PLEASE. ILL UPVOTE ONLY IF TYPEWRITTEN, COMPLETE, AND CORRECT. DONT ANSWER IF YOU ALREADY ANSWERED THIS, ILL DOWNVOTE. THANK YOU
Step by step
Solved in 2 steps
- 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.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.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.
- 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?Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?
- 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?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
- A company produces two products. E and F in batches of 100 units. The production and cost data are: The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product. What is the differential profit from producing product E instead of product F for the year? A. $216,000 B. $204,000 C. $12,000 D. $54,000Gelbart 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?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