XYZ company sells phones for P22, 500 per unit. The variable cost is P10, 000 per unit. The fixed costs are P37, 500, 000. The company wants to have a profit of P12, 500, 000. How many units do they have to sell to achieve this goal? a.3,000 b.4,000 c.5,000 d.6,000
Q: 4. Skate Along, Inc has fixed costs of $740,000. They sell each pair of roller skates for $80 a…
A: Break even point means a point where there is no profit or loss incurred. in other words Break even…
Q: Alex Miller, Inc., sells car batteries to service stations for an average of $30 each. The variable…
A: Break even level = Total fixed costs / Contribution margin per unit where, Contribution margin per…
Q: Company XYZ produces and sells wireless earphones. The selling price per unit is $5 and the total…
A: Solution:- Calculation of Break even point value($) as follows under:-
Q: XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with…
A: Formula: Contribution margin per unit = Sales price per unit - Variable cost per unit
Q: NUBD has fixed cost of P200,000. It has two products that it can sell, X and Y. NUBD sells these…
A: Break Even Point = Fixed Cost/Weighted Contribution Margin Per unit
Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $10 per unit,…
A: Target sales = (Fixed Cost-Desired Income)/contribution per unit
Q: Basic Corp. produces and sells a single product. The seling price is P25 and the variable costs is…
A: Here in this question, we are require to answer various question. Lets start with basic…
Q: Company XYZ produces and sells wireless earphones. The selling price per unit is $5 and the total…
A: Break-even point is the point at which the entity does not make any profit or loss That is Selling…
Q: XYZ manufactures a computer stand. It has fixed costs of S600,000 and each stand sells for $90, with…
A: Selling price = $ 90 Variable cost = $ 48 Fixed cost = $600,000 Contribution per unit = Selling…
Q: Pepper Inc. produces lacrosse sticks. The selling price per stick is $42. Their variable cost per…
A: given that, Selling price per unit = $42 Variable cost per unit = $28 Fixed cost per unit = $12…
Q: Green Meadows makes three types portable coolers. The company's total fixed cost P1,080,000. Selling…
A: The break even is a point where company has no profit no loss situation after its sales.
Q: Company XYZ produces and sells wireless earphones . The selling price per unit is $5 and the total…
A: Break-even point: The break-even point refers to a point where the total cost is equal to the total…
Q: Techiefy Co. wants to launch a new product. it is observed that the fixed cost of the new product is…
A: Cost function = 35,000 + 500D Revenue function = 5000D-100 D2 Profit function at breakeven =…
Q: XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with…
A: Formula: Profit = Revenues - Expenses.
Q: Juniper Enterprises sells handmade clocks. Its variable cost per clock is $6, and each clock sells…
A: Cost volume profit analysis is the technique used by the management for decision-making. These…
Q: Kappa Inc. produces a product that has a variable cost of $8/unit. The company's fixed costs are…
A: Solution: Contribution margin per unit = sales price - variable cost = 12 - 8 = $4 per unit Break…
Q: NUBD Co. sells two products, Avon and Bona. The company sells these products at the rate of 2 units…
A: Break even point is calculated by dividing the fixed cost by the contribution margin.
Q: n Pan Sdn Bhd produces and sells plastic plates to retailers for RM3 per unit. The variable RE b.…
A: Total variable cost per unit = Direct materials + direct labor + variable overheads + selling…
Q: XYZ manufactures a computer stand. It has fixed costs of S600,000 and each stand sels for $90, with…
A: Profit = Contribution margin - Fixed costs where, Contribution margin = Sales - Variable costs
Q: The ABC Sdn Bhd manufactures footballs with Safiey Sali's signature stamped. Each football sells for…
A: The break even sales units are the sales units at which point where business earns no profit or no…
Q: Case 6 A company has fixed costs of $90,000. Its contribution margin ratio is 30% and the product…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: Felix Company produces a product that has a selling price of $12.00 and a variable cost of $9.00 per…
A: Contribution margin per unit = Selling price - Variable cost Contribution margin ratio =…
Q: Cats Products Inc. has a division that makes cat treats. The division has fixed costs of P10,000…
A: Fixed cost (FC) = 10000 Units sold (Q) = 40000 Variable cost per unit (VC) = 2 Let the breakeven…
Q: XYZ manufactures a computer stand. It has fixed costs of S600,000 and each stand sells for $90, with…
A: Formula: Unit contribution margin = Sales price per unit - variable cost per unit
Q: Techiefy Co. wants to launch a new product. It is observed that the fixed cost of the new product is…
A: Units sold = D Revenue function R(D) = 5000D - 100D^2
Q: DAREO Sdn. Bhd. is a well-known chocolate manufacturer based in Penang. The fixed cost of producing…
A: Introduction:- The following basic information as follows:- DAREO Sdn. Bhd. is a well-known…
Q: Zoro, Inc. produces a product that has a variable cost of $6.00 per unit. The company’s fixed costs…
A: Given: Variable cost per unit = $ 6 Fixed costs = $ 30,000 Cost of product sold = $ 10 Estimated…
Q: Hemlock, Inc. sells equipment for $80. Its variable cost is $45 per unit and its fixed costs are a…
A: SOLUTION- GIVEN, SELLING PRICE PER UNIT = 80$ UNITS = 5000 UNITS VARIABLE COST = 45 VARIABLE COST…
Q: . A ceramics manufacturer sold cups last year for P7.50 each. Variable costs of manufacturing were…
A: Solution The problem relates to breakeven analysis and the cost volume profit analysis…
Q: The National Inc. will produce 5,000 boxes of chocolates next year. Variable costs is 60% of sales,…
A: The question is related to Marginal Costing. The details are given as under Fixed Cost = P160000…
Q: Techiefy Co. wants to launch a new product. It is observed that the fixed cost of the new product is…
A: Given: Revenue function = 5000D-100D^2 Fixed Cost = $35000 Variable cost per unit = $500
Q: NUBD has fixed cost of P200,000. It has two products that it can sell, X and Y. NUBD sells these…
A: Solution: Sales mix = 3:1 Weighted average contribution margin per unit = P6*3/4 + P3*1/4 = P5.25…
Q: NUBD has fixed cost of P200,000. It has two products that it can sell, X and Y. NUBD sells these…
A: Weighted Average Contribution margin: X Y Mix 75% 25% Contribution margin P6 P3…
Q: Darigold, Inc., sells Product M for P5 per unit. The fixed cost is P210,000 and the variable cost is…
A: Break even sakes (in "P") = Fixed cost/contribution Margin ratio = P210, 000/(100-60) % = P210,…
Q: The Vetron Company is planning to produce two products, Tig and Lam. Vetron is planning to sell…
A: Solution: - Calculation of Break-even point of "Tig" as follows under(In pesos):-
Q: Benson Corporation is a manufacturing company that makes small electric motors it sells for $40 per…
A: The break even sales are the sales where business earns the no profit no loss during the period.
Q: Samsung manufacturers USB charging cables for mobile devices. It sells these cables to distributors…
A: Solution 1: Contribution margin per cable = Selling price - Variable cost = $2.60 - $0.72 = $1.88…
Q: NewB Company sells bags with a selling price of P10,000 per bag and a variable cost of P4,000 per…
A: a. Total cost function C(x) =F+V(x) C(x)= Total production cost F= Fixed costs V= Variable cost per…
Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $10 per unit,…
A: Units need to sell for desired profit = (Fixed costs + Desired profit) / Contribution margin per…
Q: Lindon Company is the exclusive distributor for an automotive product that sells for $52.00 per unit…
A: As posted multiple independent questions we are answering only single question kindly repost the…
Q: Company XY Z produces and sells wireless earphones. The selling price per unit is $5 and the total f…
A: Break even point: Break even point is the point at which the total cost of the firm equals to total…
Q: Lindon Company is the exclusive distributor for an automotive product that sells for $28.00 per unit…
A: If variable cost reduced by $2.8 per unit. New Variable cost per unit = $19.6-$2.8 = $16.8 New…
Q: Foris Company's product sells for P16 and has a variable cost per unit of P12. Fixed costs are…
A: The Break-even point is that level of sales, where the total cost i.e variable and fixed both are…
Q: How many units must be sold to achieve this goal? a.
A: Maintaining a desired level of profit can be required by many management when there is a possible…
Q: Lindon Company is the exclusive distributor for an automotive product. The product sells $40 per…
A: Given, Sales price is $40 Fixed expense is $180,000 Contribution ratio is 30% Assuming sales be Q…
Q: National Company sells two types of computer chips. The sales mix is 30% (X-Chip) and 70% (Y-Chip).…
A: Introduction:- Break-even point means:- Where total revenues equals to total expenses. There is no…
XYZ company sells phones for P22, 500 per unit. The variable cost is P10, 000 per unit. The fixed costs are P37, 500, 000. The company wants to have a profit of P12, 500, 000. How many units do they have to sell to achieve this goal?
Step by step
Solved in 2 steps
- Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.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
- Gelbart 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?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?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.
- Jakarta Company is a service firm with current service revenue of $400,000 and a 40% contribution margin. Its fixed costs are $80,000. Maldives Company has current sales of $6,610,000 and a 45% contribution margin. Its fixed costs are $1,800,000. What is the margin of safety for jaka rta and Maldives? Compare the margin of safety in dollars between the two companies. Which is stronger? Compare the margin of safety in percentage between the two companies. Now, which one is stronger? Compute the degree of operating leverage for both companies. Which company will benefit most from a 15% increase in sales? Explain why. Illustrate your findings in an Income Statement that is increased by 15%.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.Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.
- 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.Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. 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 October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shell. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320.000. However, the $130 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order? A. Profits will decrease by $1,200. B. Profits will increase by $31,200. C. Profits will increase by $600. D. Profits will increase by $7,200.