16. Lamar has the following data: Selling Price $ 40 Variable manufacturing cost $ 22 Fixed manufacturing cost $ 150,000 per month Variable selling & administrative costs $ 6 Fixed selling & administrative costs $ 120,000 per month If Lamar produces and sells 30,000 units, what is the margin of safety in units?

16. Lamar has the following data: Selling Price $ 40 Variable manufacturing cost $ 22 Fixed manufacturing cost $ 150,000 per month Variable selling & administrative costs $ 6 Fixed selling & administrative costs $ 120,000 per month If Lamar produces and sells 30,000 units, what is the margin of safety in units?

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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NUBD Company manufactures a face masks that sells for P10 per unit. This is its sole product and it has projected the break-even point at 50,000 units in the coming period. If fixed costs are projected at P100,000, what is the projected variable cost ratio?
A projected income statement of Hailwork’s company for the coming year follows: Sales $506300 |Total Variable Cost 170865 Contribution Margin ? Total Fixed Cost 175000 Operating Income ? Compute contribution margin and contribution margin ratio Compute the Operating Income How much revenue must be earned in order to breakeven What is the effect on contribution margin ratio if the unit selling price and unit variable cost increase by 10 percent each?
Fountain Corp. has a selling price of $14 per unit and variable costs of $9.80 per unit. When 18,000 units are sold, profits equaled $24,900. What is the margin of safety?
Big Chill, Inc. sells portable dehumidifier units at $193. Unit variable costs are $110. Fixed costs are $4,175,000. Management has set a profit objective of 15.1% return on sales. Calculate the sales volume in dollars that will provide a 15.1% return on sales. Round your answer to the nearest dollar .
J2.
The Blue Co. will produce 25,000 units of product next year. Variable costs ratio is 70%, while fixed costs will total P85,000. The price of each unit to be sold by the firm to achieve an EBIT of P60,000 is A P19.33 B P17.33 C P33.33 D P3.33
The following are data from a production, calculate; a. The Break-even point in terms of sales value and in units. b. The production demand is at 20,000 units. What is the current production profit? c. If the management decides to lower down its selling price by 50% given the same demand, will this be a sound decision? Justify. Monthly Fixed Factory Overhead Cost = P600,000 Monthly Fixed Selling Overhead Cost = P120,000 Variable Manufacturing Cost per Unit = P220 Variable Selling Cost per Unit = P30 Variable Distribution Cost per Units = P50 Selling Price per unit = P400
P Company has provided the following data: Sales Price per unit: $50. Variable Cost per unit: $30; Fixed Cost: $135,000 Expected Sales: 20,000 units. d. Determine the margin of safety in dollars. e. If the company wants to have net income of $70,000, how many units must they sell.
s
company X produce and sell 80000 calculators yearly. the capacity for company to produce 100000 calculators . the next data available the variable cost per calculator: manufacturing cost 22 selling and administrative 10 the fixed cost: manufacturing cost 256000 selling and administrative 112000 if the company accepted to special order to sell 10000 calculator at selling price 50 per calculator. whats the effect of the company income?
Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $8 while the variable cost ratio is 20%. Assuming ?total fixed costs of $30,000, what is the margin of safety in ($) value 142,500 a O None of the given answers b O 102,500 .c O 82,500 d O 122,500 e O

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Selling Price	$	40
Variable manufacturing cost	$	22
Fixed manufacturing cost	$	150,000	per month
Variable selling & administrative costs	$	6
Fixed selling & administrative costs	$	120,000	per month