19. A company manufacturing calculators has a capacity of 200 units a month. The variable costs are P1,000 per unit, The average selling price of the calculators is P25,000. Fixed costs of the company amount to P150,000 per month which include all taxes. The company pays an annual dividend of P12 per share on each of the 30,000 shares of common stocks. Determine the sales volume corresponding to the unhealthy point.

19. A company manufacturing calculators has a capacity of 200 units a month. The variable costs are P1,000 per unit, The average selling price of the calculators is P25,000. Fixed costs of the company amount to P150,000 per month which include all taxes. The company pays an annual dividend of P12 per share on each of the 30,000 shares of common stocks. Determine the sales volume corresponding to the unhealthy point.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Alexander Corporation sells its only product for $30 per unit. Its variable costs per unit are 40% of its selling price. Its total fixed costs for the year are $450,000. The company has an average income tax rate of 40 %. How many units must the company sell in order to earn an after tax profit of $360,000 ? Question 12 options: 45,000. 58,334. 1, 750, 020. 75,000.
Please Solve E
During a slack period, a manufacturer can sell 3000 articles per month at a price of $1.20 each. A $200,000 investment is used which is depreciated over a 20-year life. An annual fixed cost of $20,000 myst be considered well as an annual maintenance cost of $10,000. The production cost is $1.10 per item. The manufacturer's tax rate is 45%. Should the factory shut down?
United Snack Company sells 50-pound bags of peanuts to university dormitories for $5 a bag. The fixed costs of this operation are $60,000, while the variable costs of peanuts are $.5 per pound. a. What is the break-even point in bags? b. Calculate the profit or loss on 18,000 bags. c. What is the degree of operating leverage at 20,000 bags ? d. If United Snack Company has an annual interest expense of $10,000, and EBIT $80.000, calculate the degree of financial leverage at 18,000. e. What is the degree of combined leverage at both sales level
Last year company A introduced a new product and sold 25,900 units at $97.00 per unit. The product variable expense $67.00 per unit with a fixed price expense of $835,500 per year. a. What is the product's net income or loss last year? b. What is the product break-even point in unit sales and dollar sales? c. Assume the company has conducted a market study that estimates it can increase sales by 5,000 units for each $2.00 reduction in its selling price. If the company would only consider increments of $2.00(e.g. $68,$66, etc) What is the maximum annual profit that can be earned on this product? What sales volume and selling price per unit generate the maximum profit? d. What would be the break-even point in unit sales and dollar sales using the selling price that was determined in the required letter c above? Thank you,
A company’s forecasted sales are $300,000 and its sales at break-even are $180,000. Its margin of safety in dollars is a. $180,000. c. $480,000. e. $300,000. b. $120,000. d. $60,000.
Xeta Inc., sells a box for $15 each. The box have a variable cost of $4 per unit, and the products' fixed operating costs are at $220,000 per year. The company's capital structure includes 55% debt and 45% equity. Annual interest expense is $25,000, and the corporate tax rate is 35%. 1.Calculate the break-even point in units. 2.If it sells 25,000 units, calculate the firm's EBIT and net income.
12. General Electric Company which manufactures electric motor has a capacity of producing 150 motors a month. The variable costs are P4,000.00 per month, the average selling price of the motor is P750.00 per motor. Fixed costs of the company amount to P78,000.00 per month which includes all taxes. The company has 12,000 shares of stock at P150.00 par value whose annual dividends is 15%. Determine the unhealthy point.
A company’s forecasted sales are $300,000 and its sales at break-even are $180,000. Its margin of safety in dollars is:
A company produces 400 units per month and the unit is sold at 1,800 pesos each. The dividends are 0.08 on 8,000 shares with per value of 25 pesos each. 25,000 pesos is the monthly operation cost, and the other costs of 1,000 pesos per unit. Determine the break even point in pesos
The Warren Watch Compony sells watches for $25, fixed Costs are $170,000, and variable costs are $15 per watch! watchili 1 ngay 20 a) What is the firm's gain or loss at sales st. of 10,000 watches & Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent. $ NOM MAX 250 Seb(2 Bek What is the firm's gain or loss at sales of 18,000 watches? Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent. ( st b) What is the break-even point Cunit sales)? Round your answer to the nearest whole number. Slow EHMNY 2.3
ABC Company had sold 500 pieces of handbags at 150 pesos each in just one month period. The company is positive to increase their sales by 10% per month. The cost of goods sold is 75 pesos. The operating and administrative expenses is 50,000 pesos per month. How much will be the total income at end of the year without EBIT? approximately 201.613 pesos O approximately 201,964 pesos O approximately 201,911 pesos O approximately 201,113pesos

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