ABC Company breaks even at P300,000sales and earns P30,000 at P350,000 sales. Which of the following is true? Fixed costs are P20,000. Profit at sales of P400,000 would be P80,000. The selling price per unit is P3. Contribution margin is 60% of sales.

ABC Company breaks even at P300,000sales and earns P30,000 at P350,000 sales. Which of the following is true? Fixed costs are P20,000. Profit at sales of P400,000 would be P80,000. The selling price per unit is P3. Contribution margin is 60% of sales.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The NUBD Co. Sells Product A for P60 each. Variable costs are P36 per unit. Fixed costs are…

A: Contribution margin per unit = Sales value - variable cost = 60 - 36 = 24 per…

Q: Mazoon Company's variable costs are 60% of the selling price and its fixed costs are $80,000. To…

A: Contribution=fixed cost+Profit=$80,000+$20,000=$100,000

Q: A Company has Sales of P1,457,900, a Contribution Margin Ratio of 35%, and Margin of Safety of…

A: Given that, sales = P1457900 Contribution margin ratio = 35% Margin of safety = P224000

Q: A firm sells a single product for $10. Its variable cost per unit is $6 and fixed costs are $80. If…

A: Let, no. of units sold = X So, Net Profit = (Sales price - variable cost)*No. of units sold - Fixed…

Q: A company's fixed operating costs are $310,000, its variable costs are $3.65 per unit, and the…

A: Break even is the point at which the revenue generated becomes equal to the total costs. Fixed Cost…

Q: Golden Corporation contemplates to market a new product. Estimated fixed costs is P1,000,000. The…

A: Introduction: After deducting costs, allowances, and taxes, net revenue is the money earned by an…

Q: KLM Company produces a single product. The selling price is OMR 40 a unit and the variable costs is…

A: The target sales required to achieve the target profit can be calculated with the help of CVP…

Q: Bonita Industries requires sales of $1500000 to cover its fixed costs of $800000 and to earn net…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Marengo Corporation's total costs at breakeven are $80,000 when it sells 20,000 units. These costs…

A: Fixed cost = total costs x 75% = $80000 x 75% = $60,000 Variable cost = total costs x 25% =…

Q: A product sells for $50 with variable costs of $36 per unit and annual fixed costs of $1,200,000. If…

A: Contribution Margin :— It is the difference between sales revenue and variable cost. Number of…

Q: Miko Firm is assessing its cost structure. It has P680,000 in fixed operating costs, P5.80 in…

A: Break-even Point refers to that point where the cost of production is equal to the revenue of a…

Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…

A: The question is multiple choice question. Required Choose the Correct Option.

Q: Hang Kyuk Company has sales of P 200,000, variable costs of P 100,000 and fixed costs of P 75,000.…

A: Cost-volume-profit analysis: Cost-volume-profit analysis is a technique that is used to determine…

Q: Coney Adventures Inc. sells one product for $5. The variable cost per item is $3, and the fixed…

A: A Break-even point is a situation where the company earns no profit and faces no loss.

Q: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90.…

A: Answer A) Calculation of Breakeven point in units Breakeven point in units = Total fixed Cost/…

Q: XYZ Corporation sells only one product with a selling price of $280 and a variable cost of $80 per…

A: Formula: Break even point in units = Fixed cost / Unit contribution margin

Q: Bluejeans Company has an after-tax profit of P140,000. Bluejeans has a return on sales of 20% and…

A: Before tax profit = P140,000 / 70% = P200,000 Fixed cost = P100,000 Sales = P200,000 / 20% =…

Q: Mazoon Company's variable costs are 65% of the selling price and its fixed costs are $80,000. To…

A: As the questions asked have more than 1 question, the first question is answered. If you want the…

Q: Jasin Company projected operating income ( based on sales of 450,000 units ) for the coming year as…

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

Q: If Canace Company, with a break-even point at $522,600 of sales, has actual sales of $670,000, what…

A: Solution:-a Calculation of margin of safety in dollars and as a percentage of sales as follows…

Q: Radison Inc. sells a product for $40 per unit. The variable cost is $20 per unit, while fixed costs…

A: Contribution margin per unit = sales price - variable costs = $40 per unit - $20 per unit = $20 per…

Q: Papaya Corporation has the following product information: Sales price $9.00per unit $5.00per unit…

A: Operating income= sales- variable cost-fixed cost

Q: Assuming that NUBD increased sales of Product X by 25 percent, what should the profit from Product X…

A: Solution: Contribution margin ratio = Contribution margin / sales = (P300,000 - P240,000) /…

Q: Skyler Company sells a product for $125 per unit. The variable cost is $85 per unit, and fixed costs…

A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…

Q: Bluejeans Company has an after-tax profit of P140,000. Bluejeans hás a return on sa 20% and the tax…

A: Contribution margin- Contribution Margin is defined as selling price minus variable cost, and it…

Q: Altstadt Inc. sells a product for $50 per unit. The variable cost is $20 per unit, and fixed costs…

A: The point at which the company neither earns any profit nor incurs any loss is referred to as the…

Q: 1.AA Corporation sells Product Rainbow for P5 per unit. The fixed costs are P210,000 and the…

A: The calculation of amount of sales if Pearl is to realise a profit of 10% on sales and the weekly…

Q: Mia Enterprises sells a product for $90 per unit. The variable cost is $40 per unit, while fixed…

A: Break-even point in units is computed by dividing the fixed cost by the contribution margin per…

Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…

A: The Calculation of Profit is as follows: Contribution = Sales - Variable Costs…

Q: A company’s sales figure is £250,000 and its margin of safety ratio is 40%. Assuming that the fixed…

A: The margin of safety sales is the difference between the current sales and break even sales.

Q: Trailblazer Company sells a product for $270 per unit. The variable cost is $150 per unit, and fixed…

A: Target Profit: It refers to the desired amount of profit that a company expects to achieve by the…

Q: Solomon company has total fixed cost of $15,000, variable cost per unit of $6, and a price of $8. If…

A: Units required to earn Targeted profits can be calculated by the formula as follows, =(Total fixed…

Q: Company M's fixed costs were P45,000, its variable costs were P24,000, and its sales were P80,000.…

A: Break-even point:- Break-even point is that point in which the total cost of particular production…

Q: Problem: The Company has Sales of P88,000, a Contribution Margin Ratio of 25%, and Margin of Safety…

A: Introduction: Break even point sales: At the break even point level sales there is no profit and no…

Q: igelow Inc. sells a product for $1,200 per unit. The variable cost is $816 per unit, while fixed…

A: Break even point is a point where total expenses are equal to total sales. At break even point…

Question

ABC Company breaks even at P300,000sales and earns P30,000 at P350,000 sales. Which of the following is true?

Fixed costs are P20,000.

Profit at sales of P400,000 would be P80,000.

The selling price per unit is P3.

Contribution margin is 60% of sales.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin is $320,000 while the total fixed costs $80,000. If sales are expected to increase by 50% in the next period, how much would the new profit be ($)? O a. 336,000 O b. None of the given answers Oc 304,000 O d. 272,000 O e. 400,000
.
James Company has a margin of safety percentage of 20%. The break-even point is £200,000 and the variable expenses are 45% of sales. Given this information, the operating profit is: Select one: O A. £27,500 O B. £18,000 O C. £22,500 O D. £22,000
Sinclair Company's product has a selling price of £25 per unit. Last year the company reported a profit of £20,000 and variable expenses totalling £180,000. The product has a 40% contribution margin ratio. Because of competition, Sinclair Company will be forced in the current year to reduce its selling price by £2.00 per unit. How many units must be sold in the current year to earn the same profit as was earned last year? Select one: O A. 15,000 units O B. 12,000 units O C. 16,500 units O D. 12,960 units
The company sells a single product for $57. Variable costs are 54% of the selling price. Fixed costs are $489,846 and the company currently sales 8,298 units. What is the breakeven in units?
The Blue Co. will produce 25,000 units of product next year. Variable costs ratio is 70%, while fixed costs will total P85,000. The price of each unit to be sold by the firm to achieve an EBIT of P60,000 is A P19.33 B P17.33 C P33.33 D P3.33
Problem: The Company has Sales of P420,000, a Contribution Margin Ratio of 40%, and Margin of Safety of P100,000.Required:1. How much is Sales at Break - even Point?2. How much is the Fixed Cost?
xZ Companys single produchas a selling pnce of 525 per unit. Last year the company reported profit of 5200,000 and variable expenses totaling 5960,000. The product has a 40% contribution margin ratio. Because of competition. XYZ Company will be forced in the current year to reduce its selling price by $2 per unit How many units must be sold in the current year to earn the same profit as was earned last year? Select one: Oa.64.000 Oc44000 0000 00 O e.116 000
Yusuf Company sells a product for $220 per unit. The variable cost is $170 per unit, and fixed costs are $180,000. Determine (a) the break-even point in sales units and (b) the sales units required to achieve a target profit of $56,000.
Lindon Company is the exclusive distributor for an automotive product. The product sells $40 per unit and has a CM ratio of 30%. The company's fixed expenses are $180,000 per year. Required: 1. What are the variable expenses per unit? 2. Using the equation method: a. What is the break-even point in units and sales dollars? b. What sales level in units and in sales dollars is required to earn an annual profit of $60,000? c. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4 per unit. What is the Company's new break-even point in units and in sales dollars? 3. Repeat (2) above using the unit contribution method.
Kerrigan Ltd makes and sells product A. The current selling price is £11 and the total of variable costs per unit is £6. The fixed costs of production are £350,000 and the company currently sells 75,000 units. Required: (a) Calculate the break-even point (in units and revenues) of product A for Kerrigan Ltd. ] (b) Calculate the profit made on sales of 75,000 units. [] (c) The company will make an advertising campaign costs £10,000 and will improve the product specifications, which will increase the variable cost per unit by £1. This is expected to allow the company to increase the selling price to £13 and the sales is expected to be 80,000 unites. Calculate the new profit figure for the improved product.
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