Answer all please QUESTION 2- COST-VOLUME -PROFIT (CVP) Analysis Question aksTelematics Incorporated manufactures flat-screen television sets. The company's contributionformat income statement for 2021 is given below:Sales (25,000 units)Less variable expensesTotalContribution MarginLess Fixed ExpensesPer Unit$ 2,500,000$ 1,500,000$ 1,000,000$ 800,000Operating Income$ 200,000Management believes operating income can be further improved and would like you to preparethe following analysis:Required:A1. Compute the company's Contribution Margin (CM) ratio and variable expense ratio.marks)2. Compute the company's break-even point in both units and sales dollars. Use the equationmethodPercentage ofSales100%? %$ 100$ 60$40?%3. Assume that sales increase by $ 600,000 next year. If cost behaviour patterns remainunchanged, by how much will the company's operating income increase. Use the ContributionMargin (CM) ratio to determine your answer. merke)4. Refer to the original data. Assume that next year, management wants the company to earn aminimum profit of $ 500,000. How many units will have to sold to meet this target profitfigure?==5. Refer tooriginal data. Compute the company's margin of safety in both ollar andpercentage form.6. Assume that, through a more intense effort by the sales staff, the company's sales increase by12%. By what percentage would you expect operating income to increase? Verify youranswer by preparing a new income statement showing a 12 % increase in sales.

Contribution = $1,000,000 Variable expenses = $1,500,000 Sales = $2,500,000 Contribution margin…

1. Compute the company's Contribution Margin (CM) ratio and variable expense ratio. 4 marks) 2. Compute the company's break-even point in both units and sales dollars. Use the equation method 3. Assume that sales increase by $ 600,000 next year. If cost behaviour patterns remain unchanged, by how much will the company's operating income increase. Use the Contribution Margin (CM) ratio to determine your answer.marke

1. Compute the company's Contribution Margin (CM) ratio and variable expense ratio. 4 marks) 2. Compute the company's break-even point in both units and sales dollars. Use the equation method 3. Assume that sales increase by $ 600,000 next year. If cost behaviour patterns remain unchanged, by how much will the company's operating income increase. Use the Contribution Margin (CM) ratio to determine your answer.marke

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem 2: Contribution margin income statements for Beyonce Couture and Rihanna Cosmetics for the year ended 2020 are as follows: Contribution Margin Income Statement for the year ended 2020 Beyonce Couture 2,500,000 Rihanna Cosmetics Sales 3,000,000 Less: Variable Costs Cost of Goods Sold 512,367 645,978 Selling and Administrative 366,771 1,012,749 1,987,251 Expenses 269,874 782,241 1,717,759 Total Variable Costs Contribution Margin Less: Fixed Costs Rent Expense Wages and Salaries 420,000 267,898 687,898 1,029,861 560,000 369,746 929,746 Total Fixed Costs Operating Income 1,057,505 Suppose that the total number of variable costs per unit sold are P131.58 for Beyonce Couture and P111.11 for Rihanna Cosmetics. Compute for the operating leverage of both companies.
Question Description Company XYZ has a monthly rental amount of 2000 USD, credit payments(1200 per year), materials 30USD, Labor 70 USD, Unit selling price is 150$. Please find BEP andprepare a profit and loss statement. Going forward company also decided to look at theirproductivity from a multifactor perspective. To do so, CEO has determined his labor, capital,energy and material usage and has decided to use dollar as the common denominator. His totallabor hours are now 300 per day and will increase to 308 per day. His capital and energy costs willremain constant at $350 and $150 per day respectively. Material costs for 100 logs per day are$1000 and will remain the same. Because he pays an average of $10 per hour. a) calculate the productivity for current system and with professional buyer.b) Please prepare a flow diagram, process chart, activity chart and operations chart for a teacherteaching a class at FMS?
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Problems Saved Help Muzzillo Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (3,350 units) Variable expenses Contribution margin Fixed expenses Net operating income. Required: $ 224,450 164,150 60,300 57,100 $ 3,200 a. If the selling price increases by $4.00 per unit and the sales volume decreases by 300 units, what would be the estimated net operating income? b. If the variable cost per unit increases by $6.00, spending on advertising increases by $3,700, and unit sales increase by 2,010 units, what would be the estimated net operating income?
screenshot attached vo Company manufactures and sells a single product. The company's sales and expenses for last year follow: gwoii
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Question Two companies Malcom and Yoda manufacture the similar hand-sanitizing products. The following data for the two companies for the year 2019 are provided below: Malcom ($) Yoda ($) Sales revenue 60,000 72000 Total costs 42,000 48000 Variable Costs 40 % of sales revenue 50% Required: Calculate the Break Even Point (BEP) in dollars of product for each company. Calculate the percentage margin of safety for each company. If sales of the product in Yoda company are equal to 3,000 units, determine the BEP (in units), and present the Break-even chart. I Would like more info on point number 3 with the break even chart
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Question 3: Sohar Company's financial information is given in the table below. Sales (OMR) Fixed Costs Year 2019 | 2020 Variable Costs 225000 240000 405000 90000 450000 120000 Calculate: a) P/V ratio, b) B.E.P. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000.
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