A company desires to sell a sufficientquantity of products to earn a profit of$300,000.If the unit sales price is $20, unit variablecost is $12 and total fixed costs are$600,000, how many units must be sold toearn net income of $300,000?a) 168,750 units.b) 90,000 units.c) 112,500 units.d) 67,500 units.

Definition of Variable cost:Variable cost refers to expenses that fluctuate directly with production…

Answered: A company desires to sell a sufficient…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Solomon company has total fixed cost of $15,000, variable cost per unit of $6, and a price of $8. If Solomon wants to earn a target profit of $3,600, how many units must be sold? 2,500 7,500 9,300 18,600 18,750
A company's fixed operating costs are $360,000, its variable costs are $2.95 per unit, and the product's sales price is $5.10. What is the company's break-even point; that is, at what unit sales volume will its income equal its costs? Round your answer to the nearest whole number.
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…
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?
A firm sell a single product for $6. Its variable cost per unit is $4 and fixed costs are $50. Ignoring income taxes, the amount of sales revenue needed for $20 profit is Select one: a. $210. b. $150. c. $35. d. $25.
.
Forest Company sells a product for $100 per unit. The variable cost is $50 per unit, and fixed costs are $200,000. Determine (a) the break-even point in sales units and (b) the sales units required for the company to achieve a target profit of $66,000.a. Break-even point in sales units fill in the blank 1 of 2 unitsb. Break-even point in sales units required for the company to achieve a target profit of $66,000 fill in the blank 2 of 2 units
The Zin Company wants to achieve an operating income of $126.000, They currently sell 5,000 units at a price of $72 per unit with variable costs of $32 per unit fixed costs total $84, 000. In order to achieve their target operating income before taxes without increasing the selling price, the company will need to increase sales by $94,000 $84,000 600 units. 250 units
The Selling Division’s unit sales price is P20 and its unit variable cost is P10. Its capacity is 10,000 units. Fixed costs per unit are P4. Current outside sales is 7,500 units. What is the maximum transfer price that the Purchasing Division would be willing to accept if 4,000 units will be sold to the Purchasing Division? Assume that the Purchasing Division can buy the same from outside market at P18.50 and that a cost of P1 per unit will be saved from the transfer. _____________________5. The Selling Division’s unit sales price is P20 and its unit variable cost is P10. Its capacity is 10,000 units. Fixed costs per unit are P4. Current outside sales is 10,000 units. What is the maximum transfer price that the Purchasing Division would be willing to accept if 4,000 units will be sold to the Purchasing Division? Assume that the Purchasing Division can buy the same from outside market at P18.50. _____________________6. The Selling Division’s unit sales price is P19 and its unit variable…
Li Company has a unit selling price of $150, unit variable costs of $45, and total fixed costs of $47,200. How much sales revenue must Li Company generate to achieve net income of $27,700. Sales revenue needed to achieve target net income $
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? 1. 120,000 units 2. 111,000 units 3. 96,000 units 4. 80,000 units
Trailblazer Company sells a product for $270 per unit. The variable cost is $110 per unit, and fixed costs are $1,056,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $190,080. a. Break-even point in sales units fill in the blank 1 units b. Break-even point in sales units if the company desires a target profit of $190,080 fill in the blank 2 units

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS