A firm with $65,000 in fixed costs (including depreciation) breaks even on unit sales of 10,000 How many units must the firm sell to earn $23,000 in operating profits?
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A: Break-Even Point: It refers to a point of production at which there is no profit no loss.
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A: Residual income is the leftover income for company or business after payment of all its expenses and…
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A: Break even point:— It is the point of production where total cost is equal to total revenue. At this…
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A: In this we have to operating cash flow and from that we can get required value of sales per unit.
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A: The objective of the question is to calculate the net operating income, break-even point in unit…
Q: 4. A firm produces and sells a product with a contribution margin of $32 per unit. The firm is…
A: Lets understand the basics. Break even point is a point at which no profit and loss arise. In other…
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A: The net income is the net profit of the company earned during the period. The net income includes…
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A: We will set up the selling price in such a way that total costs are recovered along with 15% imputed…
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A: Analyzing the financial performance of a company involves examining its revenues, costs, and profits…
Q: ity (1000 kg product per year) has an d variable costs are 61 per cent of ne it (ie, profit per kg…
A: Break even point = Fixed cost / Contribution margin
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A: Increase in profit = current contribution margin x increase in sales % = 450000 x 10% = $45000
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A: The break even sales are the sales where business earns no profit no loss during the period.
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A: Formulas: Increase in net operating income % = (Expected net operating income - Current net…
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A: Operating income= sales- variable cost-fixed cost
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Q: sell to earn a profit after taxes
A: Profit before taxes = Profit after taxes/(1 - Tax rate) Profit after taxes P15,000 Tax rate 25%…
Q: Q3.…
A: Contribution means the difference between the selling price and variable cost. Fixed cost remain…
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A: Break even point(BEP)= Fixed cost/Contribution per unit Variable cost ratio + Contribution Ratio=…
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A: Break even sales in units = Fixed cost/Contribution margin per unitContribution margin per unit =…
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A firm with $65,000 in fixed costs (including
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- If the objective of the firm is to get 25% profit, how many units does the firm need to sell if the price per unit is $250? Given information: Annual fixed costs are 114,000, CTO is .65, breakeven point is 175,384.62.A company with fixed costs of P40,000 is now breaking even on sales of P160,000. How much income can be expected on sales of P200,000?Last year Minden Company introduced a new product and sold 25,700 units of it at a price of $93 per unit. The product's variable expenses are $63 per unit and its fixed expenses are $839,700 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2 (e.g., $68, $66, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price that you determined in requirement 3? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3…
- A company is currently operating at a sales level (D) of only 1,250 units per year, with a selling price in pesos (p) given by p = 4200 – 2.50 per unit. The fixed cost of the company is P450,000 per year and the variable cost is P325 per unit. Is the company gaining or losing? It is being planned that the company will engage in a modernization plan that would increase the fixed cost by P85,000 per year, will lower the number of units sold per year by 10 units but would reduce the variable costs by P65 per unit. Would you agree with the plan?1. If the company accepts this offer and rejects some business from regular customers so as not to exceed capacity, what would be the total net operating income next year? 2. If the company rejects the offer of the foreign distributor, how much is the opportunity cost?Last year Minden Company introduced a new product and sold 25,800 units of it at a price of $95 per unit. The product's variable expenses are $65 per unit and its fixed expenses are $836,100 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2 (e.g., $68, $66, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price that you determined in requirement 3? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3…
- Last year Minden Company introduced a new product and sold 25, 300 units of it at aprice of $99 per unit. The product's variable expenses are $69 per unit and its fixedexpenses are $837,300 per year. Required: 1. What was this product's net operatingincome (loss) last year? 2. What is the product's break - even point in unit sales anddollar sales? 3. Assume the company has conducted a marketing study that estimates itcan increase annual sales of this product by 5.000 units for each $2 reduction in itsselling price. If the company will only consider price reductions in increments of $2 (e.g$68, $66, etc.), what is the maximum annual profit that it can earn on this product?What sales volume and selling price per unit generate the maximum profit? 4. Whatwould be the break - even point in unit sales and in dollar sales using the selling pricethat you determined in requirement 3?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,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.
- A company generates $5,000,000 in sales by selling 1.250,000 units at $4 per unit. Its variable costs equal 75 percent of sales and its fixed costs are $750,000. Therefore, the company's operating Income (EBIT) equals $500,000. The company estimates that if its EBIT were to increase 10 percent, its net income and EPS would increase 25.0 percent. How much will net income and EPS increase if sales increase by 10 percent? (Assume that the change in sales will have no effect on the company's tax rate.) O 67.9% O 60.1% O 70.0% O 65.3% O 62.5%If a company reduces their fixed costs from $219,000 to $158,000 when the selling price of $35 per unit and the variable costs of $34 per unit remain the same, how many units do they need to sell to generate the same operating income (round to the nearest whole number)?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