A corporation charges P30 per unit for their goods. The monthly unit variable cost is P22, while the total fixed expenses are P100,000. The firm now pays monthly salary of P40,000 without commission. It is exploring a pay plan in which salesmen would earn a 5% commission on sales, but their monthly salary would be reduced to P25,000. At what point in the sales cycle is the corporation unconcerned about the two compensation plans?

Q: Honda Motor Company is considering offering a $1,900 rebate on its minivan, lowering the vehicle's…

A: cost and benefit analysis is best used for decision making in the field of finance. This analysis…

Q: Network Systems is introducing a new network card. Suppose Network Systems knows its fixed costs are…

A: Breakeven refers to the point at which the original cost equals the market price which is determined…

Q: Suppose your firm receives a $4.93 million order on the last day of the year. You fill the order…

A: Debit what comes in, Credit what goes out Debit all Assets, Credit all Liabilities Debit all income…

Q: If each sales rep earns a salary of €60,000 per year, whatsales are necessary to break even on the…

A: Break-Even Point: It refers to a point of production at which there is no profit no loss.

Q: I am having trouble with break even analysis and target profit, taxes. There was not a clear example…

A: Break-even analysis determines how many units of a product must be sold in order to pay fixed and…

Q: Should Shoecraft get into the slipper business? House slippers sales will be worth $122.0 million…

A: Break-even point can be defined as that level of sales revenue at which the business earns zero…

Q: Data concerning the single product a company sells show that selling price and variable expenses per…

A: Solution : Given Current sales units 9900 units per month Selling price per unit $150…

Q: Your corporation sells a product for $10 per unit. The variable expenses are $6 per unit, and the…

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

Q: The marketing manager has proposed a commission of $8 per unit. In exchange, the staff would accept…

A: Net operating income = Sales - variable cost - fixed cost

Q: OceanGate sells external hard drives for $184 each. Its total fixed costs are $27 million, and its…

A: The percentage decline in sales and in profits are estimated as follows:State of…

Q: Your storage firm has been offered $95,700 in one year to store some goods for one year. Assume your…

A: Given information: Cost : $95,200 Profits : $95,700 Cost of capital : 8.2%

Q: Carrolton, Inc., currently sells widgets for $80 per unit. The variable cost is $30 per unit, and…

A: The change in income can be calculated by calculating the difference between original net income and…

Q: Honda Motor Company is considering offering a $1,900 rebate on its minivan, lowering the vehicle's…

A: Cost and benefit analysis is best used for decision making in the field of finance. This analysis…

Q: The Warren Watch Company sells watches for $22, fixed costs are $145,000, and variable costs are $11…

A: As per guidelines, we are supposed to answer only 3 sub-parts. a). Firm's gain or loss is calculated…

Q: Hammerhead Charters runs fishing trips out of the local port. Hammerhead charges $90 per trip for a…

A: At break even point , cost of a product equals the revenues of the product. Break Even Point =…

Q: The Warren Watch Company sells watches for $27, fixed costs are $130,000, and variable costs are $14…

A: Break Even Point:The break-even point is the point at which a business’s revenue equals its costs,…

Q: A company is considering the following three compensation plans for the salespeople listed in the…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Your Corporation produces and sells a single product. The selling price is $140 per unit. The…

A: The excess of the selling price over the variable cost is termed as contribution margin which shows…

Q: OceanGate sells external hard drives for $184 each. Its total fixed costs are $27 million, and its…

A: Operating leverage is used to set the selling price of companies products so that all the costs are…

Q: Your firm sells widgets for $10 each. You make a gross profit of $3 on each widget. You have…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: PQ Company currently sells a piece of equipment for $150 per unit.  It plans on lowering the price…

A: Sales depends on the price of products and sales increases with decreases in the prices and hence…

Q: A company, subject to a 25% tax rate, desires to earn P600,000 of after-tax income.  How much should…

A: Tax rate = 25% Desired earning after tax  = P600,000  Earning before tax shall be added  to fixed…

Q: total contribution margin

A: We know that as per Marginal Costing  Contribution Margin = Sales Revenue - Total Variable Cost  It…

Q: The ABC Corporation is considering introducing a new product, which will require buying new…

A: Calculation of break even sale in units are as follows, Break even point where revenue  equal to…

Q: Alfa publishing publishes cookbooks that sell for $50 each. The variable cost per book is $15. At…

A: Contribution per unit = sales price - variable cost

Q: Firm M expects to earn $210,000 next year after taxes. Sales will be $4 million. This firm makes…

A: Given Information: Sales = $4,000,000 Profits after taxes = $210,000 Sales per unit = $200 Variable…

Q: Honda Motor Company is considering offering a $2,000 rebate on its minivan, lowering the vehicle's…

A: Variables in the question:Rebate on minivan=$2000Increase in sales due to rebate=54700 -…

Q: Leo Consulting enters into a contract with Highgate University to restructure Highgate’s processes…

A: The transaction price that Leo will estimate for this contract is $30,000.

Q: Nike Enterprises sells widgets for $10 a piece which cost them $6 to make. In a good year…

A: Since question involves multiple subparts , we will answer 1st sub 3 parts for you as per prescribed…

Q: Frank Corporation manufactures a single product that has a selling price of S30.00 per unit. Fixed…

A: Formula used: Units to be sold to earn a target profit = ( Fixed cost + target profit ) / Unit…

Q: OceanGate sells external hard drives for $200 each. Its total fixed costs are $30 million, and its…

A: Given information in question Selling price                =          $200 Fixed cost…

Q: L. Boyd Company's total fixed costs are $130,000 per year. The company's break-even point in sales…

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

Q: Camp Corporation produces a single product that it currently sells for P10. Fixed expenses are…

A: Advertising expense is a fixed cost. So the total fixed cost will be P130,000 (120,000 + 10,000).

Q: Blossom Inc. currently grants no credit, but it is considering offering new credit terms of net 30.…

A: Here,Increase in Sales Price is $2Original sales Price is $40Increase in Sales Unit is 1,000Original…

Q: Togo clothes sells suits. The average selling price is $1000 per suit, variable cost are fixed at…

A: Contribution margin per unit = Selling price - Variable cost Units to be sold = (Pre-tax income +…

Q: Required Information Exercise 3-31 and 3-32 (Static) (LO 3-1) [The following information applies to…

A: The Break-even point in units is the number of units to be sold for the profit to be "Zero".…

Q: What is the break-even point (unit sales)? Round your answer to the nearest whole number.…

A: Break even point is where there is no loss or no profit and all cost variable cost and fixed cost…

Q: the use of "high powered" quarterly sales commissions, used by virtually every firm that sells…

A: Introduction: The curve, or degree of the curve, in the connection between borrowing costs and bond…

Q: Grixdale Tax Services prepares taxes for individuals. Grixdale offers a simplified pricing model…

A: Break even point is that point where there is no profit or no loss. The contribution margin earned…

Q: Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the…

A: Given information : Capacity to sell and produce = 48,000 Rets Selling price = $56 Fixed…

Q: rporation is considering introducing a new product, which will require buying new equipment for a…

A: Answer : Sales require (in unit) = (Fixed cost + target profit)/(Selling price per unit - Variable…

Q: Carrolton, Inc. currently sells widgets for $80 per unit.  The variable cost is $30 per unit and…

A: we need to calculate the estimated revenue with the expected price and sales. For that use the…

Q: The Warren Watch Company sells watches for $29, fixed costs are $180,000, and variable costs are $10…

A: Calculate the gain or loss for 7,000 watches as follows: Gain or (loss) = Total contribution - Fixed…

Q: a. The Co. can increase unit sales from 500 to 540 by increasing the monthly advertising budget by…

A: The marginal cost process is based on the difference between product costs and period costs. Only…