A company sold 105,000 units of product last year. The contribution margin per unit was ₱6, and fixed expenses totaled ₱300,000 for the year. These fixed expenses are expected to increase to ₱350,000 this year, but the contribution margin per unit will remain unchanged. How many units must be sold to earn the same net operating income (ignoring tax) as it was earned last year? a. ₱ 122,500 b. ₱ 113,334 c. ₱ 75,834 d. ₱ 105,000 e. ₱ 108,334 f. ₱ 27,500

Q: A firm sells a single product for ₱100 per unit. The firm’s fixed expenses total ₱500,000 per year.…

A: Selling price (P) = ₱100 Fixed cost (F) = ₱500000 Variable cost (V) = ₱40 Commission (C) = ₱5…

Q: Calculate the turning point of economic efficiency!

A: Efficiency is calculated when output is divided by input and multiplied by 100. Input = revenue = 18…

Q: break-even point

A: Crumbley Inc produce and sale two products. Break even point of the business is as below.

Q: For the past year, LaPrade Company had fixed costs of $70,000, a unit variable costs of $32, and a…

A:

Q: The company has P3,000,000 sales.  The variable costs are equal to fifty cents for every peso of…

A: The percentage increase in net income can be calculated with the help of degree of financial…

Q: The break-even point for sales of Luckyme is P200,000 with a contribution margin of 40%. Assuming…

A: Break even sales = P 200,000 Contribution margin = 40% Profit = P 100,000

Q: A company has a total fixed cost of 500.000 TL and produced 1.000.000 TL of profit this year. What…

A: The net income is the net profit of the company earned during the period. The net income includes…

Q: Zekrom Corporation recorded the following information last year:  Sales of ₱450,000;  Net operating…

A: The degree of operating leverage (DOL) is calculated as ratio of contribution and operating income

Q: JAO Company sells a product for P6 per unit. Fixed expenses total P37,500 per month and variable…

A: Desired profit per unit = sales x 15% = P6 x 15% = P0.90 per unit Contribution margin per unit =…

Q: The following information is for Gable, Inc. and Harlowe, Inc. for the recent year, Harlowe, Inc.…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

Q: ans plesase

A: The objective of the question is to calculate the required rate of return for Felton Co. given the…

Q: arukh Corporation sells a single product for Rs. 15 per unit. Last year, the company's sales revenue…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: Operating Profit?

A: Operating profits are profits that are earned by the company from its major business activities…

Q: Suppose that there is a customer expected to annually generate $1,500 of gross contribution. With…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: A product sells for ₱10 per unit and has variable expenses of ₱6 per unit. Fixed expenses total…

A: Given,  Sale per unit = ₱10 Variable expenses per unit = ₱6 Total fixed expenses = ₱45,000 After tax…

Q: Sheeza Corporation sells a single product for Rs. 15 per unit. Last year, the company's sales…

A: Fixed cost means the cost which do not vary with the level of output where as variable cost will…

Q: AM. 119.

A: The objective of the question is to calculate the new return on investment (ROI) if expenses are…

Q: Felton Co. produces rubber bands for commercial and home use. Felton reported $4 million residual…

A: Step : 1 Given information:Residual Income (RI) = $4 millionNet Book Value (NBV) of Assets = $20…

Q: For the past year, Pedi Company had fixed costs of $70,000, unit variable costs of $32, and a unit…

A: Fixed cost = $ 70,000 Selling price = $ 40 Variable cost = $ 32 Contribution per unit = Selling…

Q: Stark Industries reports that its average operating assets are $511,000,000 and its net operating…

A: Residual income is the income that the firm earns over and above the minimum acceptable return of…

Q: Farukh Corporation sells a single product for Rs. 15 per unit. Last year, the company's sales…

A: No. of units sold = Total sales / Sales price per unit = Rs. 225,000 / Rs. 15 per unit = 15,000…

Q: The following annual information is for Dexter Corporation:   Product A Revenue per unit: $20.00…

A: Formula: Unit contribution margin = Selling price - Variable cost per unit

Q: Luxio Luxury Goods & Services Company's sales are ₱600,000, its fixed expenses are ₱150,000, and its…

A: Break even sales (in amount)=Fixed cost/contribution margin ratio

Q: Flamengo Co is a sporting goods manufacturing company. Last year, report the following information:…

A: Profit margin refers to how much profit earn by a company from its total sales made during the year.

Q: Prepare a multiple-step income statement.

A: Income statement represents the net income or net loss that is calculated by deducting the expenses…

Q: Last year, Bridgerton Co. had sales of $1,625,000 on the sale of 25,000 units, variable costs of…

A: The break-even sales are the sales where business earns no profit or loss during the period. The…

Q: Required information [The following information applies to the questions, displayed below.]…

A: INCOME STATEMENTIncome Statement is one of the Important Financial Statements of the Company. Income…

Cost volume profit (CVP) analysis

CVP analysis is a cost-volume-profit technique of cost accounting that examines the influence of varying levels of expenses and volume on operating profit. Cost Volume Profit analysis determines the relationship between Cost, Sale Volume, sales price, and Profit. CVP analysis is also known as break-even analysis which helps the business organization, banks, and their management to determine and forecast how a change in total sales and cost affects the profit of the organization. CVP analysis helps in financial decision-making for the budget, expense, tax, market investment, and corporate finance and aims at measuring variations in cost and volume.