KIMEP BCB Task 1-CVP SINGLE PRODUCT- The Arman Company manufactures and sells pens. Present sales output is 5,000,000 units per year at a sel price of KZT 50 per unit. Fixed costs are KZT 9,000,000 per year. Variable costs are KZT 30 per unit. Required: a. What is the present breakeven point in revenues? ( Now Arman is considering adding two more products: pencils and erasers Relevant information for their production is as follows: Pencils KZT75 KZT30 Sales price Erasers 60 30 Variable Costs per unit Fixed costs for the reporting year remain at the same level while the sales mix is predicted as 40:60:20 respectively for pens, pencils and erasers respectively. Required: b. What is the company's breakeven point in units, assuming that the given sales mix is maintained? Calculate the quantities of each product. Bry

KIMEP BCB Task 1-CVP SINGLE PRODUCT- The Arman Company manufactures and sells pens. Present sales output is 5,000,000 units per year at a sel price of KZT 50 per unit. Fixed costs are KZT 9,000,000 per year. Variable costs are KZT 30 per unit. Required: a. What is the present breakeven point in revenues? ( Now Arman is considering adding two more products: pencils and erasers Relevant information for their production is as follows: Pencils KZT75 KZT30 Sales price Erasers 60 30 Variable Costs per unit Fixed costs for the reporting year remain at the same level while the sales mix is predicted as 40:60:20 respectively for pens, pencils and erasers respectively. Required: b. What is the company's breakeven point in units, assuming that the given sales mix is maintained? Calculate the quantities of each product. Bry

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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The information below relates to the only product of Catherine Company: Exercise 4-13 Sales price per unit Variable cost per unit Fixed costs per year P48 36 P240,000 REQUIRED: i Compute the contribution margin ratio and the peso sales volume required to break-even. 2. Assuming that the company sells 75,000 units during the year, compute the margin of safety sales volume. Exercise 4-14 Cristina Corporation has fixed costs of P72,000 per month. It sells two products as follows: Sales Variable Contribution Price Cost Margin Product A P20 P8 P12 B 20 14 REQUIRED: 1. What monthly peso sales volume is required to break-even if three units of product A are sold with one unit of product B? 2. What monthly peso sales volume is required to break-even if one unit of product A is sold with three units of product B?
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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?
Please solve this question X limited has provided the following informationSelling Price Rs. 20 per unit Variable Manufacturing Cost Rs. 11 per unit Variable Selling cost Rs. 3 per unit Fixed Factory Overheads Rs. 5, 40, 000 per year Fixed Selling Cost is Rs. 252, 000 per year You are required to calculate the followings : (1) Break Even point (ii) PV ratio (iii) Number of units that must be sold to earn a profit of Rs. 60,000 per year(iv) Impact of decrease in selling price by 10 percent on Breakeven Point.(v) Impact of increase in selling price by 20% on Break Even point.
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What would be the total contribution to profit to the company as a whole for 10,000 units transferred to Division B and later sold to outside customers at P21 per unit. A. P20,000 B. P40,000 C. (P20,000) D. P80,000
PLEASE ANSWER ONLY QUESTIONS F AND G
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please answer question F and G