Annually (10000) units of a product are sold at a price of (12) $/unit, if the fixed costs is ($40000) and annual profit is (30,000$). The management of company presented a new design that increases fixed costs by (10%) and variable costs by (20%), in return for increasing sales to reach (12,000) annual units. At what price must the product be sold in order to to increase the profit by a third? Also, determine volume of production at break-even point
Q: Use the following information to answer this question. Bayside, Inc. 2017 Income Statement ($ in…
A: The return on equity (ROE) measure is calculated by dividing net income by shareholders' equity. ROE…
Q: Table 1. Raw Data COUNTRY Number of Number of Workers Workers needed to needed to produce 1,000…
A: international trade, that takes place in whole world across the border of the country this trade…
Q: The following balances were taken from a sole trader’s accounts for the year ended 30 June 2021:…
A: Solution: Capital account balance on 30.06.2021 = Beginning capita balance + Profit for the year =…
Q: After analyzing the data, prepare a bank reconciliation for M Park Corporation at March 31st.…
A: Bank reconciliation refers to the method used by the company to match the bank statement as well as…
Q: Unit VIII question 3 part a
A: When the actual price paid for materials used in manufacturing differs from the normal price for the…
Q: Sam Ltd owns a piece of vacant land in Broadmeadows. A substantial number of factory owners…
A: Under the fair value model, the assets are recorded at their current market value.
Q: on cost Required: (a) Assuming the firm bought no extra fixed assets and disposed of none, complete…
A: As per our protocol we provide solution to the one question only but as you have asked multiple…
Q: Partners Ltd operates a car manufacturing plant. It has decided to purchase a 100 per cent interest…
A: Calculation of goodwill Calculation of goodwill in the Acqusition first to taken up the total…
Q: 60,000 Accumulated depreciation on motor vehicle (1 October 2019) 15,000 Purchases and…
A: A company is required to publish its Financial Statements at the end of each accounting period…
Q: (a) Preparethebankreconciliationstatementasat31August2022. (b)…
A: We are given the cash balance of Isofac company and bank balance as on 31st August 2022 which are…
Q: PROBLEM 3 Green Vegetable Mfg. Co. purchased equipment on January 1, 2019, at a cost of $800,000.…
A: Depreciation expense is the reduction in the value of the asset for that period. In the given…
Q: Why is it 100,000 (.75)?
A: In process costing, equivalent units are computed considering total units completed in the current…
Q: Unit VII question 14
A: A budget that analyzes actual and budgeted levels of controllable expenses for a division and its…
Q: Jennifer Smith decides to start a new company that will be operated as a corporation, Comfy Shoes…
A: Transactions relating to the Shareholder's Equity includes: i) Issue of Share Capital (Common shares…
Q: Collins Company is preparing its master budget for April. Use the given estimates to determine the…
A: Total sales = Sales of territory A + Sales of territory B Units produced = Sales + ending inventory…
Q: Miguel is a citizen and resident of Brazil. During the current vear, Miguel never visits the…
A: Solution Tax rate is the rate at which an individual or corporation is taxed.
Q: On January 1, 2021, South Company acquired a building for P5,000,000. The entity paid P500,000 down…
A: The question is related to Journal entries to record purchase of Building by signed non interest…
Q: Mr. Ian make a loan with Cash and Carry Financial Institution by charge their premise building as a…
A: Answer:- 1 Mr. Ian should need to follow the account receivable, so that unpaid invoices can be…
Q: A frim has net working capital of $509, net fixed assets of $2,336, sales of $7,000 and current…
A: The sales to total assets can be calculated by dividing total sales by total assets. The total asset…
Q: Date Activities Units Acquired at Cost e$ 6.00 - Unita sold at Retail $ 840 Beginning inventory…
A: Introduction: LIFO Method: LIFO stands for Last in first out. which means last received inventory to…
Q: One disadvantage of activity-based costing is that it cannot be used for external reporting. This is…
A: Introduction Activity based Costing (ABC) is a method of assignment of overhead costs to the…
Q: Unit viii question 13
A: In flexible budgeting, budgeted expenses will be adjusted as per the actual production. This is to…
Q: From the French Instrument Corporation second-quarter report ended 2018, do a vertical analysis for…
A: Vertical analysis: It implies to a method of analyzing or evaluating the financial statements of a…
Q: Beginning inventory, purchases, and sales for an inventory item are as follows: Sep. 1 Beginning…
A:
Q: During 2021, Bycomb Company generated revenues of £300,000 for services rendered of which £70,000…
A: As per accrual syst of accounting, revenue. and expense will be recognised as and when they are…
Q: How much is the purchase discounts? How much is input tax on purchases? How much is input tax to be…
A: Input tax is the amount of tax which a business pays it to the vendors on the purchasing of the…
Q: ?Which one of the following is correct regarding organization sustaining activities They may be…
A: Needs to choose the correct statement for organisation sustaining activities.
Q: PROBLEM 6-5 Comprehensive You have been asked by a client to audit the financial statements of…
A: Answer 1: (1) A model containing rectifier is a circuit of converter that enables only one half of…
Q: Whispering has the following inventory data: Nov. 1 Inventory 28 units@$5.50 each Purchase 110 units…
A: Specific Identification Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory…
Q: Requirement: Prepare adjusting entries
A: Adjusting Entries are the journal entries made at the end of the accounting period after the Trial…
Q: How much will be the freight in share of C if base on invoice price and in weight P190, P156.25…
A:
Q: rented office space and pald two month's rent in advance in the amount of P8.000, The entry would be…
A: Prepaid expenses refers the expenses which are part of the current assets and it could be converted…
Q: Activity Cost Pool Annual Activity 10,000 Machine hours 30,000 Material moves 15,000 Setups 25,000…
A: Activity based costing: Activity based costing is one of the costing approach defined in cost…
Q: 9. The Sample Company discounts a $100,000 note receivable on 15 May 20x2. The following facts are…
A: Maturity amount can be calculated as: = Principal + Interest accrued Further, the proceeds can be…
Q: An analysis of the Marketable Securities control account of Melville Markets, Inc., shows the…
A: calculation of purchase and proceeds from marketable securities are as follows
Q: Unit VI question 12 part a
A: Contribution margin refers to the difference between sales value and variable cost. After deducting…
Q: Marie Company, a publicly-listed entity, had the following account balances on December 31, 2021:…
A: Cash is an assets recorded in the financial position of the business organization. Characteristics…
Q: The conversion cost per equivalent unit (to the nearest cent) for April is a.$3.45 b.S3.97 c.$3.20…
A: The total of the conversion costs for the initial work in progress inventory plus the conversion…
Q: Geary Corporation had the following transactions: · Apr. 15 - Received $6,000 from Marion Company…
A: Journal entry shows the recording of transactions during an accounting year and every transaction…
Q: Flora Inc. reported the following information: Net income: $640,000 Depreciation expense: $79,000…
A: Introduction: Statement of cash flows: All cash in and out flows are shown in cash flow statements.…
Q: Campbell Corporation uses the retail method to value its inventory. The following information is…
A: The cost to retail ratio is calculated as goods available for sale at cost divided by goods…
Q: On March 23, 2020 United Bank enters into an agreement to sell Treasury Notes to State Bank for…
A: In this question, we will prepare journal entries on March 23 and July 15.
Q: What amount should Dona Company report as dividend income in its 2022 income statement?
A: On 01.01.2021 Dona Company purchased 10% of another entity o/s ordinary shares for 6000000…
Q: A A partnership begins ils Ilrst yeɛ Ог орегаtions with the following capital balances: Winston,…
A: The partnership comes into existence when two or more partners agree to do the business and share…
Q: :Changing the design of the product is an example of A product level activity a O A batch level…
A: Product-level activities are the activities that are related to a specific product or activity.…
Q: The selling price of Product Y is set at $1,200 for each unit and sales for the coming year are…
A: Target cost = Desired Sales revenue - Desired profit Desired Sales revenue = 1,000 units x $1,200 =…
Q: Should I use cash-basis or accrual accounting?
A: Which one of above accounting method you should use would depend on the nature and the size of the…
Q: Each of the following scenarios requires the use of accounting information to carry out one ormore…
A: Generally the audit will be conducted at the end of the year so that the operations of the company…
Q: At the beginning of Year 2. ABC Company had $100.000 of Goodwill on its Balance Sheet. During Year…
A: Introduction:- Goodwill arises when a company acquires another entire business. Goodwill is…
Q: Cash $38,100; Short-term investments $4,100; Accounts receivable $48,500; Supplies $6,100; Long-term…
A: Introduction: Balance sheet: All Assets and liabilities are shown in balance sheet. It tells the Net…
Step by step
Solved in 3 steps
- 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. 2,000Gelbart 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?Schylar 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
- Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.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.
- ABC Company manufactures the product XE-17. The product is sold at a unit price of $70.Variable expenses are $13.50 per unit and fixed expenses are $220,000 per year.Required :a. What should be the product’s CM ratio? b. Calculate the BEP is sales dollars and in units for ABC Company. c. The manager of ABC company estimates that in the coming year, the company’s sales willincrease by $80,000 (from the current sales). How much should the net profit / loss increase/decrease if the fixed costs remain constant? d. The manager of ABC company predicts that by spending an additional $80,000 per year onadvertising and using higher quality raw material (which will in turn increase the raw materialcost per unit by $3), and increasing selling price per unit by 2% (to compensate for theincreased costs), unit sales will increase by two- thirds of the current sales units. Should thecompany go with the manager’s proposed plan? Explain your answer. (Assume that in thecurrent year, the company sold…ABC Company manufactures the product XE-17. The product is sold at a unit price of $70.Variable expenses are $13.50 per unit and fixed expenses are $220,000 per year.Required :a. What should be the product’s CM ratio? b. Calculate the BEP is sales dollars and in units for ABC Company. c. The manager of ABC company estimates that in the coming year, the company’s sales willincrease by $80,000 (from the current sales). How much should the net profit / loss increase/decrease if the fixed costs remain constant? d. The manager of ABC company predicts that by spending an additional $80,000 per year onadvertising and using higher quality raw material (which will in turn increase the raw materialcost per unit by $3), and increasing selling price per unit by 2% (to compensate for theincreased costs), unit sales will increase by two- thirds of the current sales units. Should thecompany go with the manager’s proposed plan? Explain your answer. (Assume that in thecurrent year, the company sold…2. Annually (10000) units of a product are sold at a price of (12$) per unit, the amount of fixed costs is ($40000) and the annual profit is (30000$). The management of the producing company was presented with a new design that increases fixed costs by (10%) and variable costs by (20%), in return for increasing sales to reach (12,000) annual units. At what price must the product be sold in order for the profit to increase by a third? What is the volume of production at which the realized returns will be equal to the costs for the two cases?
- Agta Enterprises manufactures a product that sells for R180 each. The company presently produces and sells 50 000 units per year. Unit variable manufacturing and selling expenses are R90 and R18 respectively. Annual fixed costs are R2 200 000 for manufacturing overheads and R1 040 000 for selling and administrative activities Suppose the marketing manager proposes that the selling price be increased to R198 per unit. Calculate the amount by which fixed costs must decrease in order to achieve the company’s profit objective of R1 800 000, if 50 000 units are sold.D) Nuevo Company manufactures a product which sells for P5. At present, the company produces and sells 50,000 units per year. Unit variable manufacturing and marketing expenses are P2.50 and P.50 respectively. Fixed expenses are P70,000 for tactonY overhead and P30,000 for marketing and administration. The sales manager hos proposed that the price be increased to P6. To maintain the present sales volume. advertising must be increased. The company's profit objective is 10% of sales. 2. Compute the additional expenditure the company can afford for advertising. E) The annuUal FC amounted to P798,000. At present, the contribution margin ratio is 42%. 3. Determine the amount of sales if the desired profit is P173,800 net of the ff. fax rates: For the first P100,000 25% In excess of P100,000 35% F) Bosh Company expects to incur the following costs to produce and sell 70,000 units of its product: Variable manufacturing cost Fixed manufacturing cost Variable marketing expense Fixed marketing…Golden Corporation contemplates to market a new product. Estimated fixed costs is P1,000,000. The variable costs ratio is 60%. if the product is to be sold at P25 per unit, how many units should the company sell to earn a net income of P200,000?