What are the three approaches to calculating the sales required to achieve the target profit? Give the formula for each one.

Q: Under the gross profit method, if the gross profit rate is based on cost, the cost of sales is…

A: The gross profit method is the one wherein the amount of inventory is measured using the gross…

Q: Give the solution in each letter: a. How much is the total net revenue? b. How much is the total…

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

Q: Describe the ways to increase sales and profitability

A: Sales indicate the revenue generated by the business entity in consideration of offering their…

Q: Determine the gross profit from sales for the period.

A: Revenue:   It refers to the earnings of an organization form business operations for a particular…

Q: What is the formulae to find New sales level?

A: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin.        or

Q: Describe the difference between the units sold approach to cvp analysis and the sales revenue…

A: Sales can be defined as the source of earning to the business entity out of the sale of inventory…

Q: Which of the following formulas is used to calculate the contribution margin ratio? (Sales − Fixed…

A:

Q: Define the term profit Margin on Sales?

A: The profit margin on sales is the ratio of net income to sales. The profit margin on sales is…

Q: the dollar amount of sales needed to achieve a target operating income is computed by what

A: The break even sales units are the sales where business earns no profit no loss.

Q: Using the table below, create a line chart in which profit or loss is plotted on the Y-axis and…

A: Selling price per Unit= $16 Variable Cost per unit= $11 Fixed cost in total= $505000

Q: Profit volume ratio is used for the calculation of: Select one: O a. Profit at given sales O b.…

A: The profit volume ratio is also known as contribution margin ratio.

Q: What do you understand by rate of markup on cost and rate of markup on selling price, illustrate…

A: Answer: Mark-up is nothing but the difference between a good or service’s selling price and its…

Q: Which of the following would be considered as a limiting factor to maximize the profit? O a. Book…

A: Limiting factors can be defined as the constraints in availability of production resources in order…

Q: Will the profit calculated on the absorption cost basis be higher or lower than the profit…

A: The key difference in profit under marginal costing and absorption costing technique comes because…

Q: Explain percent of sales method.

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: What are the three components that can be described as the profit margin?

A: Income minus expenses gives us profit. The profit margin is the percentage of profits on sales or…

Q: Which one of the following is defined, at any given sales volume, as the ratio of the total…

A: Contribution margin is Sales less variable expenses at any given volume. Operating profit is…

Q: How to get or compute the gross sales

A: Gross sales is presented in income statement.

Q: How do I get the sales formula?

A: Sales is the total revenue earned by the business from the inventory sold during the period.

Q: Which of the following is the correct calculation of selling price? O a. Cost + Mark-up O b.…

A: Selling price is price at which goods and services are sold to customer. This selling price includes…

Q: An analyst is constructing a simple model to determine the gross and net profit of a product, given…

A: Profit per unit = $ 4 Quantity = 11,700  Units   Therefore        Gross profit = Profit per…

Q: How do we calculate cost of sales

A: The net sales are calculated as difference between sales and sales discounts.

Q: Is the cost of sales under weighted average always greater than the cost of sales in FIFO?

A: as FIFO method of inventory valuation goods purchased first will be used first or sold first. The…

Q: WHAT IS THE COST OF SALES?

A: Cost of sales in the business means all costs that are directly incurred for the manufacturing of…

Q: the dollar amount of sales needed to achieve a target operating income is computed by

A: Target operating income is the desired income which the business wants to earn by selling products…

Q: Relative to the above data, how much is the Cost of sales and Net income for the period

A: The cost of goods sold is the cost of purchases and manufacturing of the products which the company…

Q: What are the basic steps that you must take to determine if you are able tomake a profit?

A: Profitability is a basic need and objective of every business. If company can able to make the…

Q: How do you determine the number of units that must be sold to earn this target operating profit. Is…

A: Target profit is a profit that the company wishes to obtain by changing certain variables like sales…

Q: What is sales revenue? How will you calculate it?

A: Answer 1) The amount received by the business entity by offering and selling the goods &…

Q: In vertical analysis, the relevant base for cost of goods sold is which of the following?…

A: Cost of sold is a term reported in the income statement. So the relevant base for it should also be…

Q: Which of the following statement is CORRECT about the foundational assumption used in CVP analysis.…

A: CVP analysis means the cost-volume profit analysis. This analysis in cost management is done to have…

Q: Which of the following is the indicator of the rate at which company is earning profit? Select one:…

A: Ratio Analysis Each  items in the financial statements of an enterprise is compared by using ratio…

Q: The equation for Gross Profit is "Gross Profit = Revenues - Cost of Goods." Which of the following…

A: Gross income is direct income of a business generated from direct revenues of the company. It is an…

Q: What are the different profitability ratios?

A: Profitability ratios are the measure which is used to depict the profitability position of the…

Q: Use the attached information to complete the ratio analysis.  The Ratio Analysis is for…

A: Ratio analysis is useful to measure the financial performance of the company and helpful to make…

Q: Why does the sales value at splitoff method use the sales value of the total production in the…

A: Split-off Point: Split-off point is the point in production process where joint products are capable…

Q: Which product line has the highest gross profit %? Which product line has the highest net income %?

A:

Q: Which donut is giving the most profit on each one sold . On average, which donut brings in the most…

A: When all the expenses incurred for production and sales are deducted from the revenue we get the…

Q: Of the three approaches to calculate sales required to achieve the breakeven point, which one(s)…

A:

Q: Cost-volume-profit-analysis can be used to determine expected income from predicted sales and cost…

A: Cost volume profit analysis -   generally cost volume profit analysis is used to determine the…

Q: A company can use cost-volume-profit analysis to determine the level of sales required to earn a…

A: CVP Analysis Equation Profit = Revenue – Fixed Costs – Variable Costs

Q: Calculate the effect on profit of a proposed change in ‘Sales Mix’ from the following data and also…

A: Sales mix should be such that the total contribution can be maximised. Which can be done by giving…

Q: mula for Gross Margin ratio? Seleccione una: a. Cost of Sales / Gross Revenues b. Revenues / Gross…

A: Gross margin ratio is one of indicator of the profitability of company and depends on the total…

Q: A component of operating efficiency and profitability, calculated by expressing net profit as a…

A: Profit is the amount earned by an entity after deducting all the outlays from the revenues.

Q: what is the cost of sales?

A: Cost of sales are the cost incurred for producing the goods which is sold. The concept related to…