The P/V ratio of a company is 50% and the margin of safety is 40% You are required to calculate the BEP and the net profit if the volume of sales is Rs.800,000/-
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A: Given: Fixed cost = $500,000 Unit sales = 50,000
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A: Formula used: Margin of safety = [ Current sales - Break even sales ) / Current sales ] x 100 In…
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A: Answer: Option c
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A: Variable costs are those costs which changes with change in activity level. Fixed costs are costs…
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: NAPOLEN SALES REVENUE IS $ 500000 , VARIABLE COST IS 20000 , FIXED C OST FOR THE YEAR IS 50000 SHOW…
A: Formula used: Net profit = Total revenues - Total Expenses Deduction of expenses from revenues…
Q: XYZ company has sales of $300,000, a contribution margin ratio of 50%, and a target profit of…
A: Given that sales $300000 contribution margin 50% 20000 units sold
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A: Profit is the excess of revenue over cost. Profit can be found out by deducting cost price from…
Q: Bellevue Corporation sells a product for $310 per unit. The product's current sales are 14,200 units…
A: Margin of safety in units = 14,200 - 10,224 = 3,976
Q: On the average, a company has a work-in-process lead time of 10 weeks and annual cost of goods sold…
A: Work in process (WIP), work in advance (WIP), merchandise in preparation, or in-process stock are a…
Q: Awtis Corporation has a margin of safety percentage of 25% based on its actual sales. The break-even…
A:
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: If a business had sales of $3,510,000 and a margin of safety of 20%, the break-even point was Oa.…
A: Formulas: Margin of Safety = (Sales - Break even Sales) / Sales
Q: Campbell Company has fixed costs of $200,000, sales price of $50, and variable cost of $30 per unit.…
A: To earn a target profit of $50,000, Campbell must earn a contribution margin of $250,000…
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.
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A: Current sales = RM 10,000 Profit margin = 5% Growth rate = 4%
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: 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: 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: Compute (a) the margin of safety in dollars and (b) the margin of safety ratio with the given…
A: Margin of safety can termed as an difference between the sales of an product and break-even sales.
Q: The fixed cost at Harley motors are $1M annually. The main product has a revenue of $9.90 per unit…
A: Net profit or loss can be calculated by deducting fixed costs and variable costs from the sales…
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: 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: Margin of Safety The Rachel Company has sales of $500,000, and the break-even point in sales dollars…
A: Margin of safety (MOS) computes the distinction between the real or planned sales and break-even…
Q: A company currently sells 400 units at a sales price of $300. Its contribution margin is 40%, and…
A: The calculation of Margin of safety is shown hereunder : Actual sales = $ 120,000 ( 400 units × $…
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A: Calculate the unit sales needed to attain a target profit of $10,000: 1. Contribution margin per…
Q: Total Sales are 500,000 OMR, Total Variable cost is 150000 OMR. Fixed cost is 200000 OMR Calculate…
A: Profit is incurred in a business or a company by subtracting expenses from revenue of the company.…
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: 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: A company’s forecasted sales are $300,000 and its sales at break-even are $180,000. Its margin of…
A: Margin of safety: It can be defined as the difference between the expected or projected sales and…
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: If a business had sales of $3,894,000 and a margin of safety of 20%, the break-even point in sales…
A: Formula: Break even point in sales dollars = Sales value x ( 100 - Margin of safety )
Q: A company’s forecasted sales are $300,000 and its sales at break-even are $180,000. Its margin of…
A: Margin of safety: Difference between total sales and break even sales is called margin of safety.…
Q: The P/v ratio of a company is 50% and margin of safety is 40%. If present sales is Rs 30,00,000 then…
A: We have the following information: P/V ratio: 50% Margin of Safety: 40% Present Sales: Rs.30,00,000
Q: Requirements: What is the margin of safety as percentage and in unit? Assume that next…
A: Margin of Safety=Planned sales-Break- even sales Break-even sales=Fixed costs/Contribution margin…
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: The selling price of a product has been set at $300 per unit, and at that price the company expects…
A: Target costing is one of costing technique in which target costs are being determined on the basis…
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- Communication The controller of New Wave Sounds Inc. prepared the following product profitability report for management, using activity-based costing methods for allocating both the factory overhead and the marketing expenses. As such, the controller has confidence in the accuracy of this report. Home Theater Speakers Wireless Speakers Wireless Headphones Total Sales 1,500,000 1,200,000 900,000 3,600,000 Cost of goods sold 1,050,000 720,000 810,000 2,580,000 Gross profit 450,000 480,000 90,000 1,020,000 Marketing expenses 600,000 120,000 72,000 792,000 Income from operations (150,000) 360,000 18,000 228,000 In addition, the controller interviewed the vice president of marketing, who provided the following insight into the company's three products: The home theater speakers are an older product that is highly recognized in the marketplace. The wireless speakers are a new product that was just recently bunched. The wireless headphones are a new technology that has no competition in the marketplace, and it is hoped that they will become an important future addition to the companys product portfolio. Initial indications are that the product is well received by customers. The controller believes that the manufacturing costs for all three products are in line with expectations. Based on the information provided: 1. Calculate the ratio of gross profit to sales and the ratio of income from operations to sales for each product. 2. Write a brief (one page) memo using the product profitability report and the calculations in (1) to make recommendations to management with respect to strategies for the three products.Crafts 4 All has these costs associated with production of 12,000 units of accessory products: direct materials, $19; direct labor, $30; variable manufacturing overhead, $15; total fixed manufacturing overhead, $450,000. What is the cost per unit under both the variable and absorption methods?ParticularsAmountDirect materialR12Direct laborR50Variable manufacturing overheadR6.50Fixed manufacturing overhead (R81,000/2,550 units)R31.76Unit product cost for the month under absorption costingR100.26 Prepare an income statement for the month using the Marginal costing method
- Q15. A company manufacturing two products furnishes the following data Annual output: Product Output units Machine Hours Purchase Orders Machine set-ups A 5000 20000 160 20 B 60000 120000 384 44 Total 65000 140000 544 64 The annual overheads are as under. Rs Volume related activity costs 550,000 Set up related costs 820,000 Purchase related costs 618,000 Total 1,988,000 You are required to calculate the overheads cost per unit of each product A and B based on Activity based costing method.Overheads cost analysisRProduction 4 400 000Materials handling 1 000 000Set-up 1 050 000Quality control 1 900 000Materials procurement 400 000Cost driver analysisCost drivers Product A Product B TotalDirect labour hours 320 000 180 000 500 000Number of set-ups 420 280 700Materials movements 700 300 1 000Number of orders 1 300 700 2 000Number of inspections 1 140 760 1 900 Annual outputProduct A 200 000 unitsProduct B 100 000 units Use the information provided below to calculate the overhead cost per product using the followingcosting systems: Traditional Absorption Costing, using direct labour hours as the basis for allocation.…A certain company is selling a specific product with a selling price of P105.00. Data regarding costs incurred are as follows: Direct Materials P600,000 Direct Labor 400,000 Variable Factory Overhead 250,000 Fixed Factory Overhead 850,000 Variable Selling and Other Expenses Per Unit 2.50 Fixed Selling and Other Expenses 250,000 Data regarding units are as follows: Case A Case B Case C Beginning Inventory 20,000 15,000 5,000 Ending Inventory 10,000 15,000 25,000 Produced 50,000 25,000 40,000 Requirements: Compute for the product cost per unit for each case under both absorption costing and variable costing. Compute for the inventory cost for each case under both absorption costing and variable costing. Prepare an income statement for each case under both absorption costing and variable costing.
- EstimatedFixedCost EstimatedVariableCost(perunitsold) Production costs: Direct materials $19 Direct labor 13 Factory overhead $261,300 10 Selling expenses: Sales salaries and commissions 54,300 4 Advertising 18,400 Travel 4,100 Miscellaneous selling expense 4,500 4 Administrative expenses: Office and officers' salaries 53,100 Supplies 6,500 2 Miscellaneous administrative expense 6,040 2 Total $408,240 $54 It is expected that 8,640 units will be sold at a price of $135 a unit. Maximum sales within the relevant range are 11,000 units. Required: Question Content Area 1. Prepare an estimated income statement for 20Y7. Belmain Co.Estimated Income StatementFor the Year Ended December 31, 20Y7 $- Select - Cost of goods sold: $- Select - - Select - - Select -…Subject: Cost management & accounting MCQs: 1) Grover Company has the following data for the production and sale of 2,000 units. Sales price per unit $ 800 per unitFixed costs: Marketing and administrative $ 400,000 per periodManufacturing overhead $ 200,000 per periodVariable costs: Marketing and administrative $ 50 per unitManufacturing overhead $ 80 per unitDirect labor $ 100 per unitDirect materials $ 200 per unitWhat is the total manufacturing cost per unit? a) $380 b) $480 c) $730 d) $430 2) Vegas Company has the following unit costs: Variable manufacturing overhead $ 25 Direct materials 20 Direct labor 19 Fixed manufacturing overhead 12 Variable marketing and administrative 7 Vegas produced and sold 10,000 units. If the product sells for $100, what is the gross margin?…1) Eberling, Incorporated, manufactures and sells two products: Product Q9 and Product Z8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product Q9 900 8.0 7,200 Product Z8 1,000 7.0 7,000 Total direct labor-hours 14,200 The direct labor rate is $27.70 per DLH. The direct materials cost per unit is $122.40 for Product Q9 and $103.20 for Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product Q9 Product Z8 Total Labor-related DLHs $ 531,080 7,200 7,000 14,200 Production orders Orders 74,880 600 700 1,300 Order size MHs 541,944 3,800 4,000 7,800 $ 1,147,904 Required: Determine the unit product cost of each product under the activity-based…
- PROBLEM 1 FIGHTING Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor hours (DLHs). The company has two products, H16Z and P25P, about which it has provided the following data: H16Z P25P Direct materials per unit P10.20 P50.50 Direct labor per unit P8.40 P25.20 Direct labor-hours per unit 0.40 1.20 Annual production 30,000 10,000 The company’s estimated total manufacturing overhead for the year is P1,464,480 and the company’s estimated total direct labor-hours for the year is 24,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity Measures Estimated Overhead Cost Supporting direct labor (DLHs) P 552,000 Setting…The total prime cost of a product 400. The variable manufacturing overhead is calculated based on the number of direct labor hours. The variable manufacturing overhead cost per hour is three times the direct labor cost per hour. The fixed manufacturing overhead was OMR5,500. Assuming that direct labor hours were 700 and that the direct labor cost was 40% of direct materials cost, how much is the total manufacturing cost? Select one a OMR83,600 b: OMR39,100 c. OMR17100 d. OMR13,900 e. OMR21,100ParticularsAmountDirect materialR12Direct laborR50Variable manufacturing overheadR6.50Unit product cost for the month under marginal costingR68.50 Prepare an income statement for the month using the Marginal costing method.
