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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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
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.
KK Corporation resells one product to a small isolated community. It sells an average of 60 sacks, but may sell as low as 20 sacks and as high as 75 sacks each day. The supplier charges P500 per sack and an additional fixed cost of P1,300 for deliveries. It takes an average of ten days for orders to arrive. Investment in inventory are funded thru debt and equity at a weighted average cost of capital of 14%. How much would the minimum total annual inventory-related costs that KK would incur if it applies the reorder point and EOQ models? Use 365 days.
Lindon Company is the exclusive distributor for an automotive product that sells for $50.00 per unit and has a CM ratio of 30%. The company’s fixed expenses are $345,000 per year. The company plans to sell 27,200 units this year. Required: What are the variable expenses per unit? Note: Round your "per unit" answer to 2 decimal places. What is the break-even point in unit sales and in dollar sales? What amount of unit sales and dollar sales is required to attain a target profit of $195,000 per year? Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $5.00 per unit. What is the company’s new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $195,000?
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
Adams Company sells a single product. The product sells for $100 per unit. The company’s variable expenses are 80% of sales and its fixed expenses total $150,000 per year. What is the company’s break-even point in dollars?
The hehe Company sells widgets. The company breaks even at an annual sales volume of 75,000 units. Actual annual sales volume was 100,000 units, and the company reported a profit of P300,000. How much is the annual fixed cost of Childless Company?
The company sales price is $35 per unit. The variable cost of production bowties is $21 per unit. The company expect to have fixed cost of $70000 next year. The company expect to sell 8,800 bowties next year. Assume no tax What is the operating income?
(b) The cost of materials is expected to rise by 20%, while total fixed costs are expected to rise by RM13,000 per year:Calculate the number of units that must be sold for the company's net profit to be maintained. Assume that the rest of the data is unchanged. Determine a new break-even point and margin of safety in bottles if the selling price change to RM 6 per packet. Assume that all other variables remain constant. please provide calculations for each of them.
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
D) Brolin Company sells a single product. The product has a selling price of $50 and variable expenses of 80% of sales. If the company's fixed expenses total $150,000 per year, what is the company's break-even point in sales dollars? per unit $750,000 A) $187,500 B) $15,000 C) $3,750 D) Page 2 of 4 O 48°F Sunny re to search

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