A furniture manufacturer specializes in wood tables. The tables sell for $220 per unit and incur $110 per unit in variable costs. The company has $17,575 in fixed costs per month. Calculate the breakeven point in units under each independent scenario.14.Variable costs increase by $15 per unit.15.Fixed costs decrease by $525.16. Sales price increases by 20%.Begin by selecting the formula labels. Then enter the amounts to compute the number of wood tables the company must sell to break even under each independent scenario, beginning with scenario 14. (Abbreviation used: CM = contribution margin. Complete all input fields. Foritems with a zero value, enter "0". Round the breakeven point-the required sales in units-up to the nearest whole unit. For example, 10.25 would be rounded to 11.)= Required sales in units14. (15. (16. (+++) ÷) ÷) =) ÷==-C=

Breakeven is the point at which an entity is in situation of no profit and no loss. At this point,…

Answered: A furniture manufacturer specializes in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Robert's Repair Shop has a monthly target profit of $19,500. Variable costs are 75% of sales, and monthly fixed costs are $13,000. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Robert's margin of safety as a percentage of target sales. 3. Why would Robert's management want to know the shop's margin of safety? ... Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Select the labels and enter the amounts to compute Robert's Repair Shop's monthly margin of safety in dollars. Target sales in dollars Breakeven sales in dollars Margin of safety in dollars
6. Atlantic Manufacturing produces and sells children’s bikes at an average price of $80. Its costs are as follows: direct materials = $14; direct labour = $8; variable overhead = $3; sales commission is 10% of price. Its fixed monthly costs are $42,000. Required: 1. Using the above cost data, set up a monthly cost equation. 2. What is the company’s contribution margin percentage? (Round your answer to 2 decimal places.)
Spruce Enterprises anticipates fixed costs of $25,000. Variable costs and expenses are expected to be 60% of sales. The president has asked you to develop a worksheet to calculate sales needed to break even and sales needed to achieve any desired net income (file name DESNI). Your worksheet should include a Data Section that contains fixed costs, desired net income, and variable costs as a percentage of sales. Assume as initial input for your model that the company wishes to achieve a net income of $10,000.
Sanju
Last month when Holiday Creations, Incorporated, sold 38,000 units, total sales were $152,000, total variable expenses were $127,680, and fixed expenses were $37,200. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 500 units and total sales by $2,000? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income %
Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 420 100.00 Variable costs 217 51.67 Unit contribution margin $ 203 48.33 Assume that Staley Co. is currently selling 550 computer monitors per month and monthly fixed costs are $79,300.Staley Co.'s margin of safety ratio (MOS%) if 550 units are sold would be (round intermediate calculation up to nearest whole number of units): Multiple Choice 41.81%. 26.11%. 28.91%. 27.91%. 82.91%.
Big Chill, Inc. sells portable dehumidifier units at $193. Unit variable costs are $110. Fixed costs are $4,175,000. Management has set a profit objective of 15.1% return on sales. Calculate the sales volume in dollars that will provide a 15.1% return on sales. Round your answer to the nearest dollar .
Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Incorporated, has been experiencing financial difficulty for some time. The company's contribution formaet Income statement for the most recent month is given below Sales (12,600 units $30 per unit) Variable expenses Contribution margin Fixed expenses $ 378,000 226,800 151,280 160,200 Net operating loss $ (18,000) Required: 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales. 2. The president believes that a $6,600 Increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $82,000 per month. If the president is right, what will be the Increase (decrease) in the company's monthly net operating Income? 3. Refer to the original dets. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $39,000 in the monthly advertising…
Mulhi
United Merchants Company sells 20,000 units at $27 per unit. Variable costs are $16.20 per unit, and fixed costs are $108,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) fill in the blank 1 % b. Unit contribution margin (Round to the nearest cent.) $fill in the blank 2 per unit c. Income from operations $fill in the blank 3

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