3 Break-even Point in units 9 0 1 Break-even in dollars 2 $424,594 23 24 849.19 25 26 Reconciliation of NOI 27 NOI variable = 128 +fixed MOH per unit change in inventory * 429 equals NOI absorption. 430 Margin of Safety in units 176.54 Margin of Safety in dollars $88,267.70 Margin of Safety percentage 17.21% 24.47 $ 23,991.79 227.71 $ 5.573.14 $ 29,564.93
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Breakeven point where from/how calculated is the breakeven point?
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- 39. The gross profit of Reade Company for each of the years ended December 31, 20PY and 20CY, are as follows: 20PY 20CY Sales P792,000 PB00,000 Cost of goods sold 464.000 480.000 Gross profit P328.000 2320 000 Assuming that selling prices were 10% lower during 200Y, what would be the amounl of decrease in gross profit due to the change in selling price? P 8,000 b. P72,000 P79,200 d. P88,000 a. C. (aicpа)and Control rial X during ubat is the economic order quantity for the company? c. 2,545 d. 2,700 n hand 00 a. 1,800 b. 1,273 00 D00 Assuming that the company will not provide any safety stock units. How much would be the annual inventory costs? a. P5,400 b. Рб,000 с. Р2,700 d. P8,100 al lead time of 39. The following are annual cost of Jazh Corp. relating to Material O which require 40,000 units per year: g normal lead Unit cost Insurance cost P20 Storage cost Freight-in Order cost 32 36 per order and 10 Interest that could have been earned on alternative investment of funds P320,000 What is the annual carrying cost per unit? roducts. The sian country. a. 96 b. 60 с. 106 d. 54 Ea cost of P8 40. Norin Corp. uses 10,500 yards of material X each day to make shirts. It usually takes 10 days from the time Norin orders the material when it is received. If Norin desired a safety stock of 21,000 yards, what is the order point? a. 126,000 b. 157,500 ction process costs P90 to e casting in need…PA1. 10.1 When prices are rising (inflation), which costing method would produce thehighestvalue for gross margin? Choose between first-in, first-out (FIFO); last-in, first-out (LIFO); and weighted average (AVG). Evansville Company had the following transactions for the month. Number of Units Cost per Unit $6,000 7,000 7,500 Purchase 2 Purchase 3 Purchase 4 Calculate the gross margin for each of the following cost allocation methods, assuming A62 sold just one unit of these goods for $10,000. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
- 93 per unit 10, 700 units 8,346 units Selling price 24 Current sales Break-even sales What is the margin of safety in dollars? Multiple Choice $776,178 $218,922 $605,419Selling price per unit 14 current sales 25,249 break – even sales 20,735 Compute the margin of safety in dollars. Enter only the amount of the margin of safety in the box provided below. Enter the amount only do not enter letters, words, dollar signs, or the calculation.From 27th Edition, Carl Warren, James M. Reeve, Jonathan Duchac Chapter 18-21, Margin of Safety If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $ 2. % b. If the margin of safety for Canace Company was 20%, fixed costs were $1,875,000, and variable costs were 80% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)
- $ 104 per unit Selling price Current sales 9,3e0 units 6,789 units Break-even sales What is the margin of safety in dollars?MC34 The management of Goodwill Enterprises, has been using the lower of cost and net realizable value in costing its inventory. It maintains only two items of inventory as follows: Confidence: 300 on hand; cost, P22 each; estimated sales price, P30; estimated distribution cost, P3 each; and normal profit, 10% of the sales price. Positive Attitude: 200 on hand; cost, P55 each; estimated sales price, P80; estimated distribution cost, P28; and normal profit, 20% of the sales price. Using the lower of cost and net realizable value, what are the unit inventory values for Confidence and Positive Attitude? Confidence, P27; Positive attitude, P52 b. a. Confidence, P22; Positive attitude, P52 Confidence, P22; Positive attitude, P55 Confidence, P27; Positive attitude, P55 с. d.3. The Inventory Company' data are as follows: Average re-order period Optimum number of orders per year Average daily usage Cost to store one unit per year Cost of stock out per unit per time` Usage during re-order period 80 90 100 115 125 150 175 Frequency 4 6 10 35 20 15 10 25 days 10 per year 4 units $5 P20 0
- Q7 b.Calculate the effect on profit of a proposed change in 'Sales Mix' from the following data and also suggest that whether company should change the sales mix or continue with the existing: M N Total Sales (in Rs) Existing Sales mix(Rs.) 80,000 1,00,000 40,000 20,000 2,40,000 Variable Cost (in Rs) 48,000 68,000 32,000 8,000 1,56,000 Fixed Cost (in Rs) 58,800 Proposed Sales Mix(Rs.)60,000 88,000 80,000 12,000 2,40,000Use the following to answer questions 30 – 35 Find the missing amounts: Case 1 Case 2 Case 3 Net Sales S687,000 $922,500 COGS ? 478,500 654,000 Gross profit 324.100 456.000| Operating expense 299,500 354,200 Operating income ? ? 94.500 30. $ sold For case 1, determine cost of goods 31. $ For case 1, determine operating income (include “-“ if needed) 32. $ For case 2, determine gross profit 33. $ (include For case 2, determine operating income “_“ if needed) 34. $ For case 3, determine net sales 35. $ For case 3, determine operating expense4. Undertake a sensitivity analysis assessing the impact of operating leverage on net income based on the following two what-if scenarios for both the divisions. (Use appropriate formula and format the cells as 'currency'): a) Conservative scenario: What would be the projected net income (loss) if sales decrease by 40% in the fourth quarter? b) Optimistic scenario: What would be the projected net income (loss) if sales increase by 40% in the fourth quarter? 5. Assume that you are in the position of Cost Accountant in Fitness Fast Inc. Management seeks clarification from you on the notable differences in breakeven units between the two divisions, despite both divisions reporting identical total sales and net income for the period. Additionally, They are keen to understand the reasons behind the substantial disparities in the comparative data of the sensitivity analysis for the two divisions. Explain the reasons for such differences to management. (Write your answer in the Explanation…