Year Sales volume (units) Selling price per unit Variable cost per unit Fixed cost 1 15,000 450 260 750,000 2 15,000 475 280 750,000 3 10,000 500 295 750,000 4 10,000 570 320 750,000   Oman company has a nominal cost of capital of 13%. Required: Measure the sensitivity of the project to changes in variables and gi

Q: What is the breakeven point in units of production if the selling price per unit is Php40.

A: Given: Fixed cost = $100,000            Variable cost = $140,000             Net sales = $280,000

Q: CVP exercises.  The Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold…

A: Note: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…

Q: Suppose that a company expects the fo llowing financial resuJts from a project during its first year…

A: Compute the contribution margin percentage: Sales revenue (a) $250,000 Less: Variable cost (b)…

Q: For the coming year, Belton Company estimates fixed costs of $60,000, the unit variable cost of $25,…

A: Break-even point: It implies to a level of production at which the business incurs no losses or…

Q: The Sunshine Company manufactures and sells pens. Currently, 6,000,000 units are sold per year at…

A: Note: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…

Q: a) What is theNPV of the project? b) What is the IRR?

A: Year Opening balance Investment Depreciation Closing balance 1 $    16,500,000.00 14.29% $…

Q: What would be the total contribution to profit to the company as a whole for 10,000 units…

A: Selling Price for 10,000 units (10,000 * P21) P2,10,000 Relevant Cost:   Variable cost of…

Q: sales = 950,000, variable costs = 450,000, and fixed costs = 310,000. if an addition is offered to a…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: Drake Company produces a single product. Last year's income statement is as follows: Sales (21,000…

A: Break even point is the units sold at which the company is in no-profit, no-loss situation. This…

Q: The costs and revenue projections for a new product are estimated. What is the estimated profit at a…

A: The contribution margin is calculated as difference between sales and variable costs.  The break…

Q: The Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.50…

A: “Hey, since there are multiple questions posted, we will answer three question. If you want any…

Q: Chambers Company has just gathered estimates forconducting a breakeven analysis for a new…

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: Year Unit Sales 1 73,000 2 86,000 3 105,000 4 97,000 5 67,000 Production of the implants will…

A: Computation:

Q: A plant operation has fixed costs of $2,000,000 per year, and its output capacity is 100,000…

A: Break-even chart is the graphic presentation depicting the break-even point. It consists of fixed…

Q: The Sunshine Company manufactures and sells pens. Currently, 6,000,000 units are sold per year at…

A: At the break even point  there would bee no loss or profit. contribution equals the fixed expenses.…

Q: Question 1: Salalah Company has the financial information given in the table for the year ended on…

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

Q: Net Present Value Analysis; Internal Rate of Return; Simple Rate of Return Casey Nelson is a…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Plant Cost    $3,000,000   year 0   Sales (units)   75,000   year 1  Selling Price   $30   each…

A: Sales includes the selling of units produced by setting a selling price and a profit margin.

Q: CVP exercises. The Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold…

A: “Hey, since there are multiple questions posted, we will answer three question. If you want any…

Q: Using the following data, estimate the new Return on Investment if there is a 10% decrease in…

A: Return of Investment (taking average operating assets as base)=Net IncomeAverage operating…

Q: Jely Company manufactures a single product. In the prior year, the company had sales of P90,000,…

A: Variable cost changes with the changing level of activities i.e. higher the production more will be…

Q: sales = 950,000, variable costs = 450,000, and fixed costs = 310,000. if an addition is offered to a…

A: Calculation of Income before Additions Particulars Amount ($) Sales 950,000 Less: Variable…

Q: Plant Cost    $3,000,000   year 0   Sales (units)   75,000   year 1  Selling Price   $30   each…

A: We know that the formula to calculate revenue is ' Revenue = Sales units * Selling price per unit

Q: A business produces a product that's sold for £30 each. Variable costs are £12 for each product an…

A: Introduction:- The following Formula used to calculate as follows under:- Units required =(Fixed…

Q: BACKGROUND The company ABC, L. C. manufactures some products with an average sales price of €…

A: Answer a:

Q: The Can-Do Co. is analyzing a proposed project. The company expects to sell 12,000 units, give or…

A: Sensitivity analysis calculates the effect on the outcome by changing one input variable at a time.

Q: The more reliable sales amount from which to base projected sales is a) Latest month b) Latest year…

A: Financial Planning has utmost important in any business and strategic management.  If business is…

Q: Raleigh Company produces and sells a single product. The company would like to budget its net…

A: Answer- Option C - $ 233,600 Working   At breakeven sales , Sales = Fixed Cost + Variable Cost…

Q: Leverage Faldo Company produces a single product. The projected income statement for the coming…

A: Since multiple subparts are posted only first three will be answered.

Q: What should be the unit selling price of its product to have a 20% return on investment? Baguio…

A: Selling price of a product is the price at which company sells its products or service.   Company…

Q: The Bebemo Company has provided information concerning its projections for the coming year as…

A: Cost of goods sold = Fixed manufacturing cost + Variable manufacturing cost

Q: A company expects to sell 20,000 units of a product next year. Variable production cost is ₱15 and…

A: Given, Target profit of the firm ₱100,000. Number of units 20,000. Fixed expenses ₱250,000.

Q: Year Unit Sales 1 73,000 2 86,000 3 105,000 4 97,000 5 67,000 Production of the implants will…

A: Step1: Introduction  Net Present Value(NPV): Net present value is a tool of Capital budgeting to…

Q: Harrison Co. expects to sell 200,000 units of its product next year, which would generate total…

A:

Q: Additional data for Required c, d, and e. Division A is considering buying a new equipment to…

A: The net present value helps the management to make the decision whether to go for the project or…

Q: Suppose that a company expects the following financial results from a projectduring its first year…

A: Sales revenue $ 250 Less: Variable costs $ 80 Contribution margin per unit $ 170

Q: Company experts in Cars and can produce at most 900 units per month. Its current monthly production…

A: The contribution margin is computed by subtracting the variable cost from the selling price of the…

Q: An investment of $40,000 today is expected to give rise to annual contribution of $25,000. This is…

A: Net present value (NPV) represents the present values of future cash flows discounted at a rate. The…

Q: A project has following estimated data: Price = $60 per unit; variable cost = $30 per unit; Fixed…

A: The combined leverage is that ratio that is calculated to summarize the combined effect of operating…

Q: Plant Cost    $3,000,000   year 0   Sales (units)   75,000   year 1  Selling Price   $30   each…

A: The total net income is the sum of income over the life of the assets. The sales growth per year is…

Q: What is the project's free CASII TIOW IO1 (Calculating changes in net operating working capital)…

A: The following calculations are done for Faraway Fabricators Incorporation.

Q: 1. An Investment has expected sales of 40.000 unit with the selling price of $20 each unit. The…

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

Q: An investment of $80,000 today is expected to give rise to annual contribution of $45,000. This is…

A: Given: Initial investment: $80,000 Annual Contribution: $45000 Production Volume: 15,000 units…

Q: Plant Cost    $3,000,000   year 0   Sales (units)   75,000   year 1  Selling Price   $30   each…

A: Variable Expenses In a simple term variable expenses are cost which are incurred at the time of…

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.