Algee Ltd plans to manufacture kettles and the following information is applicable:Estimated sales for the year 20.15Estimated costs for the year 20.15Direct material14 000 units at R80 eachR24 per unitDirect labourFactory overheads (all fixed)Selling expensesAdministrative expenses (all fixed)R4 per unitR48 000 per annum30% of salesR78 000 per annum3.1 Calculate the break-even quantity3.2 Calculate the break-even value using the marginal income ratio.3.3 Calculate the selling price per unit if the profit per unit is R4.3.4 Calculate the new break-even quantity and value if selling price is increased by 10%.3.5 Calculate the selling price if 14 000 units provide an operating profit of RO after anadditional advertising expense of R54 000

Step 1: 3.1 Break-even quantity To calculate the break-even quantity, we need to determine the fixed…

Answered: Algee Ltd plans to manufacture kettles…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Lattimer Company had the following results of operations for the past year: Contribution margin income statement Sales (18,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income Multiple Choice O $6,000 profit. Per Unit $ 12.00 $4,000 loss. 1.50 4.00 1.00 5.50 1.00 1.40 $ 3.10 A foreign company offers to buy 6,000 units at $7.50 per unit. In addition to variable costs, selling these units would add a $0.25 selling expense for export fees. Lattimer's annual production capacity is 28,000 units. If Lattimer accepts this additional business, the special order will yield a: Annual Total $ 216,000 27,000 72,000 18,000 99,000 18,000 25, 200 $ 55,800
Determinant Company is a price−taker and uses a target−pricingapproach. Refer to the following information: Production volume 602,000 units per year Market price $34 per unit Desired operating income 17% of total assets Total assets $13,800,000 What is the target full product cost in total for the year? Assume all units produced are sold. Question content area bottom Part 1 A. $13,800,000 B. $18,122,000 C. $2,346,000 D.$ 102, 340
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Question 1: Estimation of WC The management of ABC Company Limited has called for a statement showing the WC needed to finance a level of activity of 3,00,000 units of output per year. The cost statement of the company's product, for the above-mentioned activity level, is given below: Cost per unit TK 20 Direct material Direct labor Overhead Total cost Target profit Target selling price 5 TK 15 40 10 TK 50 1. Past records show that raw materials are held in stock, on an average, for two (2) months; 2. Work in process (WIP) will approximate to 15 days production; 3. Finished goods remain in warehouse on average for 1 month; 4. Suppliers for materials extend one month's credit; 5. Two months credit is normally allowed to customers (assume all sales are on credit) 6. A minimum cash balance of TK 5,00,000 is expected to be maintained; 7. The production pattern is assumed to be even during the year. Prepare a Statement of Working Capital Requirements
Munabhai
Cost Volume Profit Total Company produces one type of machine with the following costs and revenues for the year: Total revenues $4,200,000 Total fixed costs $1,400,000 Total variable costs $2,800,000 Total units produced and sold 700,000 a calculate the breakeven in unit b calculate the quantity that would produce an operating profit of $100000 c calculate the quantity that would produce an operating profit of 10 percent of sales dollars d calculate the breakeven quantity if sales increased by 20 perc ent e calculate the operating margin if 50000 unit are sold
PLEASE ANSWER QUESTIONS D, E & F
Maxim Manufacturing operations for 2022 are as follows: Per unit: $ Sales price 50 Direct material cost 18 Direct wages 4 Variable production overhead 3 Per month: Fixed production overhead 99 000 Fixed selling expenses 14 000 Fixed administration expenses 26 000 Variable selling expenses is 10% of sales value. Normal capacity was 11 000 units per month. October 2022 November 2022 Units Units Sales 10 000…
Apple Ltd makes and sells a single product, for which variable costs are follows: Direct materials £20 Direct labour £16 Variable production overhead £12 £48 The sales price is £60 per unit, and fixed costs per annum are £136,000. The company wishes to make a profit of £32,000 per annum. Required: Determine the sales required to achieve this profit
A recent income statement of Company A reported the following data: Units sold 8,000Sales revenue ₱7,200,000Variable costs ₱4,000,000Fixed costs ₱1,600,000 If the company desired to earn a target net profit of ₱480,000, it would have to sell:A. 1,200 units. B. 2,800 units. C. 4,000 units. D. 5,200 units.
uod cz 1.The cost to produce one unit of the product is: Material $ 13.00 Labor $8.00 Variable cost $7.00 Fixed expenses $ 18.00 Total fixed expenses: $ 500,000 The company's normal capacity is 100,000 units. The figures given above are for 80,000 units. The company has received a special offer for 20,000 units for a price of $ 36 per unit from a foreign customer. Advice the manufacturer on whether the order should be accepted or not. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). 3 (12pt) Qi:公 Arial vE - E T TTTT Paragraph v T T S T HTML CSS O fr Mashups

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