The P/v ratio of a company is 50% and margin of safety is 40%. If present sales is Rs 30,00,000 then Break Even Point in Rs will be
Q: NUBD has fixed costs of P160,000. At a sales volume of P400,000, return on sales is 10%; at P500,000…
A: Solution: Net income at Sales volume of P400,000 = P400,000 * 10% = P40,000 Net income at Sales…
Q: Product A sells for $24 and has a contribution margin ratio of 25%. Sales are expected to decline by…
A: Operating Income: It refers to the income a company generates after deducting operating expenses…
Q: Spice Inc.'s unit selling price is $51, the unit variable costs are $38, fixed costs are $102,000,…
A: Formula: Contribution margin = Selling price - variable cost
Q: If a business had sales of $4,000,000 and a margin of safety of 25%, the break-even point in sales…
A: Margin of safety = Actual sales - Break even point Sales Actual sales = $4,000,000 Margin of safety…
Q: Assume that sales are predicted to be $3,750, the expected contribution margin is $1,500, and a net…
A: The correct answer can be arrived by establishing how much of sales should increase such that loss…
Q: Assume the selling price per unit is $30, the contribution margin ratio is 40%, and thetotal fixed…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: An organization's break-even point is 4,000 units at a sales price of P50 per unit, variable cost of…
A: Given: Selling price = P50 Variable cost = P30 Additional units sold = 500 Fixed cost = P80,000
Q: a. If Canace Company, with a break-even point at $568,800 of sales, has actual sales of $790,000,…
A: 1) a) Margin of safety (in dollars) = Actual sales - Break-even sales = 790,000 - 568,800 =…
Q: Sunland Corporation sells a product for $175 per unit. The product's current sales are 41,900 units…
A: Margin of safety in units = 41,900 - 34,155 = 7,745
Q: Stellar Company has the following sales, variable cost, and fixed cost. If sales increase by $10,000…
A: Given Sales = $50000 Variable Cost = $9600 Fixed Cost = $27000 Profit before the increase is :
Q: the firm must have a sales price per unit of at least *
A: Fixed cost will not change with the change in the number of units sold. Profit = Sales - Variable…
Q: |The cost per unit of producing a product is 60 + 0.2x dollars, where x represents the number of…
A: Revenue: It is the income earned by a business in the course of its regular business activities.…
Q: The Price Company will produce 55,000 widgets next year. Variable costs will equal 40 percent of…
A: Solution:- Earnings before interest and taxes (EBIT) means the operating income of an entity before…
Q: Stellar Company has the following sales, variable cost, and fixed cost. If sales increase by $10,000…
A: Variable costs are those costs which changes directly with change in level of sales, but fixed costs…
Q: A firm has a margin of safety percentage of 25.1% based on its actual sales. The break-even point is…
A: Break-even analysis is a technique used widely by the production management. It helps to determine…
Q: the P/V (profit volume) ratio of a company is 50% and tha margin of safety is 40% you are required…
A: Break even for a company is a place when it is having no loss no profit situation.
Q: The manufacturer of a product had fixed costs of $120,300 per year. The variable costs are 50% of…
A: Break-even analysis is the easiest form of cost-volume-profit analysis. Break-even analysis is used…
Q: If sales are forecasted at 60,000 units and the break-even point is 48,000 units, what is the margin…
A: We need to calculate margin of safety in this question from the following given information : Sales…
Q: If Canace Company, with a break-even point at $308,000 of sales, has actual sales of $440,000, what…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: If fixed costs are $750,000 and variable costs are 60% of sales, what is the break-even point in…
A: Break-even point in sales dollars = Fixed Cost/Contribution Margin ratio Contribution Margin ratio =…
Q: The contribution margin ratio is 25% and contribution margin at break even point is $200,000. What…
A: Formula: Fixed costs = Break even point in sales x Contribution margin ratio Multiplying…
Q: Virgil Corp. has a selling price of $30 per unit, and variable costs of $20 per unit. When 12,000…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: Hong Kong Ltd has provided the following data for the current fiscal period: Sales 5,000 units…
A: ANSWER - Calculation of Existing Operating Profit : Particulars Amount Sales Price Per Unit…
Q: If a business had sales of P4,000,000 and a margin of safety of 10%, the break-even point was?
A: The question is based on the concept of Cost Accounting.
Q: P Company has provided the following data: Sales Price per unit: $50 Variable Cost per unit: $30…
A: We have the following information: Sales Price per unit: $50 Variable Cost per unit: $30 Fixed…
Q: What is the breakeven point in dollars if annual fixed costs are 114,000 and Cost to Overhead is…
A: The following calculations are done as per the given information.
Q: What will be the new contribution if the sales increase by 20%?
A: Contribution: It is the part of the revenue not spent by variable cost. It is computed by reducing…
Q: If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000,…
A: Break even point shows the sales in units or amount at which the company will be in a position of no…
Q: The selling price is $160 per unit. The contribution margin ratio is 70%. Fixed expenses are…
A: Net income = [(New selling price - variable cost) x revised units] - revised fixed cost
Q: Compute the break-even point in units. 2) How many units…
A:
Q: P Company has provided the following data: Sales Price per unit: $50. Variable Cost per unit: $30;…
A: Unit Ratio Sales 50 100% Variable cost 30 60% Contribution margin 20 40% Fixed…
Q: If the margin of safety is 40% of sales, which are P400,000, the break-even point: a.is greater…
A: Break-Even point:- It is a point from which a company starts incurring profit and covering its cost,…
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. If Canace Company, with a break-even point at $244,200 of sales, has actual sales of $370,000,…
A: Margin of safety: Difference between total sales and break even sales is called margin of safety.…
Q: If the objective of the firm is to get 25% profit, how many units does the firm need to sell if the…
A: Unit Contribution margin = Unit selling price x Contribution margin ratio
Q: A product sells for $30 per unit and has variable costs of $20 per unit. The fixed costs are…
A: Expected Contribution margin per unit = Expected sales price per unit - Expected variable cost per…
Q: The P/v ratio of a company is 50% and margin of safety is 40%. If present sales is $ 30,00,000 then…
A: The Break-even point is the point of sales where there is no profit and no loss.
Q: The P/V ratio of a company is 50% and the margin of safety is 40% You are required to calculate the…
A: PV Ratio = ContributionSales×100 Margin of Safety = Current Sales - Breakeven SalesCurrent Sales×100
Q: The contribution margin ratio is 20% for Grain Company and the break-even point in sales is…
A: To arrive at a contribution margin (CM), an income statement with variable costs deducted from sales…
Q: A company's forecasted sales are $300,000 and its sales at break-even are $180,000. Calculate the…
A: Margin of safety: It can be defined as the difference between the budgeted and break-even sales.
Q: Sales volumes are expected to be either 20,000 units with 60% probability or they are expected to be…
A: We have the following information: Sales volumes are expected to be either 20,000 units with 60%…
Q: If the selling price per unit is $80, the variable expense per unit is $40, and total fixed expenses…
A: Formula: Break even sales dollars = Break even units x Sales price per unit
Q: A company's forecasted sales are $300,000 and its sales at break-even are $180,000. Calculate the…
A: Margin of safety is the sales value which exceeds the break even sales. We can calculate Margin of…
Q: Your Company's fixed expenses total $150,000, its variable expense ratio is 60% and its variable…
A: The total costs incurred during a period can be further classified into fixed costs and variable…
Q: Versa Inc. sells a product for $100 per unit. The variable cost is $75 per unit, and fixed costs are…
A: (a) Break-even point in sales units = Fixed costsSales price per unit-Variable cost per units…
Q: Margin of Safety The Rachel Company has sales of $550,000, and the break-even point in sales dollars…
A:
Q: Zhao Co. has fixed costs of $354,000. Its single product sells for $175 per unit, and variable costs…
A: Given: The values are, fixed costs of $354,000. Its single product sells for $175 per unit, and…
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…
Q: Darigold, Inc. sells Product M for P5 per unit. The fixed cost is P210,000 and the variable cost is…
A: Cost-volume-profit (CVP) analysis is an important and systematic method which provides useful…
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- Margin of safety Jorgensen Company has sales of 380,000,000, and the break-even point in sales dollars is 323,000,000. Determine Jorgensen Companys margin of safety as a percent of current sales.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. 2,000Faldo 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 firm has a contribution margin of $78M90 and a net income of $13,700 for the current month, what is their degree of operating leverage? 0.21 1.21 2.4 5.7the P/V (profit volume) ratio of a company is 50% and tha margin of safety is 40% you are required to calculate break even point and the Net profit if the volume of sales is Rs.800,000/-. If the margin of safety is 40% of sales, which are P400,000, the break-even point: a.is greater than P400,000 b.is P160,000 c.is P240,000
- If the objective of the firm is to get 25% profit, how many units does the firm need to sell if the price per unit is $250? Given information: Annual fixed costs are 114,000, CTO is .65, breakeven point is 175,384.62.If Sales are $2,000,000 and the Break Even point is $1,500,000. What is the Margin of Safety (ratio)? A. 33% B. 175% C. 25% D. 75%A firm has a margin of safety percentage of 25.1% based on its actual sales. The break-even point is $300.2k and the variable expenses are 44.3% of sales. Given this information, calculate the firm’s actual profit.
- What is the breakeven point in dollars if annual fixed costs are 114,000 and Cost to Overhead is 0.65? If the objective of the firm is to get 25% profit, how many units does it have to sell if the price per unit is $250?The contribution margin ratio is 30% for your company and the break even point in sales is $150,000. If the company’s target net operating income is $60,000, sales would have to be: a) $550,000 b) $700,000 c) $400,000 d) $350,000Stellar Company has the following sales, variable cost, and fixed cost. If sales increase by $10,000 then their profit increases/decreases by how much? Sales $50,000 Variable Costs $9600 Fixed Costs $27,000