ABC Company has revenues of Php500,000, variable costs of Php350,000, and fixed cost of Php135,000. Compute for the total revenues needed to achieve a target operating income of Php45,000.
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ABC Company has revenues of Php500,000, variable costs of Php350,000, and fixed cost of Php135,000. Compute for the total revenues needed to achieve a target operating income of Php45,000.
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- For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of $75, and a unit selling price of $125. The maximum sales within the relevant range are $2,500,000. a. Determine the maximum possible operating loss.Need help with this questionTeh Teratai Sdn. Bhd. involved in making and distributing its herbal tea product, Hebat inBandar Tengah. Its annual fixed cost is RM162,000, where RM130, 000 is for theadministration and distribution effort involved in selling the products. The sales manager istargeting a total of 35, 000 boxes would be sold per year. The variable cost for processing isRM2 per box and its variables sales expense is 30 percent of the selling price. There will beno administrative cost incurred. The management is targeting a profit of RM160, 000 for thecurrent year. (a) Based on the above information, determine the selling price of one box of Hebat. (b) There are several reasons for cost - based approach of a product to become popular andimportant in pricing decision. Discuss these reasons.
- both answer please provide.Interchange Inc. had sales of $400,000, based on a unit selling price of $200. The variable cost per unit was $175, and fixed costs were $75,000. The maximum sales within Interchange Inc.’s relevant range are 2,750 units. Interchange Inc. is considering a proposal to spend an additional $32,750 on billboard advertising during the current year in an attempt to increase sales and utilize unused capacity.a. Construct a cost-volume-profit chart indicating the break-even sales for last year. Verify your answer, using the break-even equation. b. Using the cost-volume-profit chart prepared in part (1), determine (A) the income from operations for last year and (B) the maximum income from operations that could have been realized during the year. Verify your answers using the mathematical approach to cost-volume-profit analysis. c. Construct a cost-volume-profit chart indicating the break-even sales for the current year, assuming that a noncancellable contract is signed for the additional…The Audino Division of Berg Company makes and sells only one product. Annual data on the Audino Division's single product follow: Unit selling price, ₱250 Unit variable cost, ₱200 Total fixed costs, ₱975,000 Average operating assets, ₱1,255,000 Minimum required rate of return, 15% If Audino sells 25,000 units per year, the residual income would be ₱______________.
- ABC Company has made the following projections regarding cost increases: DM will increase by 5%; DL 8%; and 6% for all other costs including fixed costs. The company has the capacity to produce 200,000 units. Consider the following various proposals made by the division managers: a) maintain the current volume and selling price; b) manufacture and sell at capacity and reduce the unit price by ₱2; c) manufacture and sell 180,000 units, increase the unit price by ₱2, and spend an extra ₱300,000 on advertising. What is the operating income of A, B, and CInformation concerning a company's products is as follows: Sales, $300,000; Variable costs, $240,000; Fixed costs, $40,000. Assuming that the company increased sales of the product by 25%, what should the operating income be?A factory can produce 1,20,000 units per annum at its optimum (100%) capacity. The estimated costs of production are as under: Direct Material Tk 6 per unit Direct labor Tk 4 per unit Indirect Expenses: Fixed Tk 3,00,000 Variable Tk 2.50 per unit Semi-variable Tk30, 000 per annum up to 40% capacity and an extra expense of Tk 15,000 for every 20% increase in capacity or part thereof. The factory produces only against orders (and not for own stock). If the production of the factory is as indicated below and management desires to earn profit of 20% on sales for the year, work out the average selling price at which each unit should be quoted: First 2 months of the year: 30% capacity: Remaining months of the year 75% capacity. Ignore selling, distribution and administrative overheads.
- The contribution margin ratio of Donath Corporation's only product is 65%. The company's monthly fixed expense is $573,300 and the company's monthly target profit is $9,100. Required: Determine the dollar sales to attain the company's target profit.a. Imelda Company budgets sales of $1,800,000, fixed costs of $394,000, and variable costs of $1,116,000. What is the contributior margin ratio for Imelda Company? (Enter your answer as a whole number.) % b. If the contribution margin ratio for Peppa Company is 42%, sales were $2,500,000, and fixed costs were $590,000, what was the income from operations?
