?? Annika Corporation sells products A, B, andC. Annika sells four units of A for each unit ofC, and three units of B for each unit of A. Thecontribution margins are $1.20 per unit of A,$1.80 per unit of B, and $3.50 per unit of C.Fixed costs are $750,000. How many units ofA would Annika Corporation sell at thebreakeven point? [Financial Accounting]

Step 1: Define the Sales Mix RatioWe are given the relationships between product sales:Annika sells…

Answered: Annika Corporation sells products A, B,…

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 following information applies to the questions displayed below.] Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics: Sales price Variable costs Fixed costs $ 12.00 per case 5.50 per case 391,950 per year Assume that the company plans to sell 75,300 units annually. Consider requirements (b), (c), and (d) independently of each other. Required: a. What will be the operating profit? b. What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? Note: Do not round intermediate calculations. c. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 10 percent? Note: Do not round intermediate calculations. d. Suppose that fixed costs for the year are 20 percent lower than projected and variable costs per unit are 20 percent higher tha projected. What impact will these cost changes have on operating profit for the year? Will profit…
Compute the increase or decrease in net income
Assume that a merchandiser purchases a product from a supplier for $3.00 per unit and then sells it to customers for $5.00 per unit. Ordinarily, the company sell 30,000 units per year; however, it is considering lowering its price to $4.50 per unit. At the lower price, the company expects to sell 49,250 units per year. What total contribution margin will the company earn if it sells 49,250 units at a price of $4.50 per unit? Multiple Choice $69,400 $73,875 $64,025 $83,725
Fine Leather Enterprises sells its single product for $129.00 per unit. The firm’s fixed operating costs are $473,000 annually, and its variable operating costs are $86.00 per unit. Find the firm’s operating breakeven point in units. Label the x-axis “Sales (units)” and the y-axis “Costs/Revenues ($)”, and then graph the firm’s sale revenue, total operating cost, and fixed operating cost functions on these axes. In addition, label the operating breakeven point and the areas of loss of profit (EBIT).
Darigold, Inc. sells Product M for P5 per unit. The fixed cost is P210,000 and the variable cost is 60% of the selling price. What would be the amount of sales if Darigold is to realize a profit of 10% of sales?
Assume Palmer Corp. markers uses 1,440,000 gallons of ink each year. Assume Palmer will order the ink at a rate of P2 per gallon plus a fixed cost of P100 per order. At cost, the firm's carrying cost is 20% of the inventory value. What is Palmer's minimum costs of ordering and holding inventory?
What is the economic order quantity of this financial accounting question?
Fine Leather Enterprises sells its single product for $129.00 per unit. The firm’s fixed operating costs are $473,000 annually, and its variable operating costs are $86.00 per unit. a. Find the firm’s operating break-even point in units. b. Label the x-axis “Sales (units)” and the y-axis “Costs/Revenues ($),” and then graph the firm’s sales revenue, total operating cost, and fixed operating cost functions on these axes. In addition, label the operating break-even point and the areas of loss and profit (EBIT).
Pigwidgeon Company charges a selling price of $30 per unit for its single product, incurs variable costs of $14 per unit, and total fixed costs of $1,120,000. What unit sales volume is necessary to earn a net income before tax of $40,000? Select one: O a. 73,500 b. 72,500 c. 70,000 d. 77,876 e. None of these options are correct.

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