The Numb Co. is expecting an increase in fixed costs by P78,750 upon moving their place of business to the downtown area. Likewise it is anticipating that the selling price per unit and the variable expenses will not change. At present, the sales volume necessary to breakeven is P750,000 but the expected increase in fixed costs, the sales volume necessary to breakeven will go up to P975,000. Based on these predictions, what would be the required peso sales to earn P35,000 in the coming year?

Q: In 2019, Preston Company provided the following data: Sales price per unit P100; Variable cost per…

A: New Fixed cost = 1,500,000 + 500,000 = 2,000,000 New Unit variable cost = P60 - 25% = P45 New…

Q: XYZ Company is facing changes in its cost structure so that fixed costs will decrease from $600,000…

A: The correct option is:- It will Increase .d

Q: Forrester Company is considering buying new equipment that would decrease monthly fixed costs from…

A: Break even sales (in units) = Fixed costs/(sales - variable cost) Currently, 12000 = Fixed costs/…

Q: Forrester Company is considering buying new equipment that would increase monthly fixed costs from…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Currently, the unit selling price of a product is $750, the unit variable cost is $600, and the…

A:

Q: How much will profit decrease by?

A: Introduction Contribution is calculated by Deducting Variable Cost from Sales. When Fixed Cost is…

Q: he Falling Snow Company is considering production of a lighted world globe that the company would…

A: Given, variable cost per unit = $62 Total fixed cost = $240,000 Markup = 0.30

Q: Forrester Company is considering buying new equipment that would increase monthly fixed costs from…

A: Contribution margin: It refers to the leftover revenue after deducting or decreasing the variable…

Q: Newton cellular manufactures and sells the top line cell phone for the year 2022. Newton has…

A: Solution 1: Contribution margin ratio = 100% - Variable cost ratio = 100% - 70% = 30%

Q: XYZ Company is facing changes in its cost structure so that fixed costs will decrease from $800,000…

A: Net income can be defined as the difference between total revenues and total expenses. Expenses can…

Q: Forrester Company is considering buying new equipment that would increase monthly fixed costs from…

A: For New Equipment: Fixed costs = $150,000 Variable cost = $60 per unit Selling price = $100 per unit…

Q: In 2020, National Co. sold 3,000 units at P500 each. Variable expenses were P250 per unit, and fixed…

A: Breakeven Point (Units) = Fixed ExpensesSelling Price - Variable Costs

Q: how can the changes  below affect Mirabel’s overall cost structure. For those changes that are…

A: Break even point refers to that volume of operation where, there is no profit or loss to an…

Q: Your company opens and starts production this year and has variable costs per unit of $5,674 and…

A: Hence, under variable costing the amount of inventory reported is higher as compared to the amount…

Q: The NUBD Co. is expecting an increase in fixed costs by P78,750 upon moving their place of business…

A: The break even sales are calculated as fixed cost divided by contribution margin ratio.

Q: Hello, I have the following question. D&R Corp. has annual revenues of $284,000, an average…

A: Computation of Selling Price of New Product

Q: If Mirabel invests the additional $650,000 in fixed marketing expenses, sales of the Model 301 are…

A: Cost accounting is regarded as the method used by a manufacturing business in order to estimate the…

Q: Summersville Production Company had the following projected information for the current year:…

A: Formula: Break even point in units = Fixed cost / ( Selling price per unit - variable cost per unit…

Q: In 2019, Crest Company provided the following data: Sales price per unit P100; Variable cost per…

A: Reduced sale price=Existing price×100-10%=P 100×100-10%=P 90

Q: Forrester Company is considering buying new equipment that would increase monthly fixed costs from…

A: Break-even sales in units: The number of units of items that the company must sell to break even is…

Q: implemented and production decreased to 45,000 units? a- It will stay the same. b -It will increase…

A: The correct answer is :-  b. It will increase

Q: XYZ Company is facing changes in its cost structure so that fixed costs will increase from $400,000…

A: Cost that changes irrespective of production level are called fixed costs whereas costs that changes…

Q: A producer of chairs is considering the addition of a new plant to absorb the backlog of demand that…

A: Break even point is the point where revenue is equal to variable cost and fixed cost.

Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: In the upcoming year, NUBD estimates that it will produce and sell 4,000 units. The variable costs…

A: Margin of safety = Current sales - Breakeven sales

Q: NUBD Company manufactures a face masks that sells for P10 per unit. This is its sole product and it…

A: Break Even Point = Total Fixed CostContribution Per Unit                 50,000 units =…

Q: Refer to Value Pro. In the upcoming year, Value Pro estimates that it will produce and sell 4,000…

A: Margin of safety: Margin of safety is the point  after which profit will be happen in multiple of…

Q: Company XYZ is currently operating with a 60% contribution margin. The company is planning an…

A: Contribution margin= Contribution/ Sales Contribution= Sales-Variable cost

Q: Due to an increase in labour rates, the company estimates that variable costs will increase by €3…

A: Revenue refers to the whole income which the business generates from the operations or activities…

Q: Shiela Co. is expecting an increase in fixed costs by P78,750 upon moving their place of business to…

A: At break even sales. Sales - Contribution margin - Fixed costs = 0 or  Sales - Contribution margin =…

Q: The manufacturer of a product that a variable cost of $2.50 per unit and total fixed cost of…

A: The manufacturer of a product that a variable cost of $2.50 per unit and total fixed cost of…

Q: KYZ company is studying the profitability of a change in operation and has gathered the following…

A: Current Operations Anticipated Operation Sales Price (A) 22 16 Variable Cost (B) 12 10…

Q: Akira Enterprises is considering forming a new business to manufacture cutting-edge automotive…

A: Answer Variable cost per unit = P2.50 Sales price per unit is 1.5 of variable cost Means sales price…

Q: In 2019, Reyes Company provided the following data: Sales price per unit P100; Variable cost per…

A:

Q: In 2021, Roger sold 1,500 units at P500 each. Variable expenses were P300 per unit, and fixed…

A: >The relationship between Cost, Volume and profit is necessary as it tells how each of them are…

Q: Loessing Compan produced and sold 12,000 units last year with sales price of $45 per unit and unit…

A: Since all direct expenses have been deducted from sales, contribution seems to be the amount of…

Q: NUBD Company manufactures a face masks that sells for P10 per unit. This is its sole product and it…

A: Solution: Contribution margin per unit = Fixed costs / Breakeven units = P100,000 / 50000 = P2 per…

Q: Currently, the unit selling price of a product is $200, the unit variable cost is $160, and the…

A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: PJS Seating Company, a manufacturer of chair, had the following data for 2020. Sales 2,400 units Php…

A: Solution:-1 Calculation of margin of safety in Peso as follows:- First we need to calculate…

Q: An electronics firm is currently manufacturing anitem that has a va riable cost of $.50 per unit and…

A: We first need to determine the profit in the two cases by considering the revenue and the total…

Q: The NUBD Co. is expecting an increase in fixed costs by P78,750 upon moving their place of business…

A: At break even sales. Sales - Contribution margin - Fixed costs = 0 or  Sales - Contribution margin =…

Q: raceable annual fixed costs: Production $51,000 Selling $75,000 Allocated annual fixed cost $54,000…

A: Net profit refers to the total sum value of money earned by an entity after deducting all the…

Q: XYZ company is studying the profitability of a change in operation and has gathered the following…

A: This numerical has covered the concept of Cost Volume Profit Analysis.

Q: n 2020, National Co. sold 1,000 units at P500 each, and earned net income of P40,000. Variable…

A: solution given details of 2020 Units sold 1000 Selling price per unit 500 Net income…

Q: The Rizal Marketing Company is expecting an increase of fixed costs by P78,750 upon moving their…

A: Break-Even Sales:- It is a point where the company earns no profit no loss, after this point…

Q: The NUBD Co. is expecting an increase in fixed costs by P78,750 upon moving their place of business…

A: Solution Given Present breakeven sales 750000 Necessary sales volume to breakeven 975000…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.