mework Assignment iSave & ExitSubmitSavedHelpCheck my workAssume that Ocean King Products sells three varieties of canned seafood with the following prices and costs.Selling Priceper Case$ 3Variable CostFixed Costper Case$2per MonthVariety 1Variety 2Variety 353106.Entire firm$46,200The sales mix (in cases) is 40 percent Variety 1, 35 percent Variety 2, and 25 percent Variety 3.Required:a. At what sales revenue per month does the company break even?b. Suppose the company is subject to a 35 percent tax rate on income. At what sales revenue per month will the company earn$40,950 after taxes assuming the same sales mix?

Break-even Sales revenue = (Fixed costs / Weighted average CM) * Weighted average SP Where,…

Answered: Assume that Ocean King Products sells…

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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5. Genesis Company is a wholesaler. It purchases 60.000 units of Product X per month for sale to retailers. The cost of placing an order is P100. The cost of holding one unit of inventory for one year is P4. Note: Kindly input your answer with comma. Example: 10,000 Required: Previously, the company had been purchasing 5,000 units of product X per order: a. What is the ordering cost per year under the previous policy? b. The annual carrying cost? c. How much money does the company save over the policy of purchasing 5,000 units per order using the EOQ policy?
Pierson Pet Products produces two models of dog beds: Basic and Custom. Price, cost and expected sales volume data for the two models are as follows: Selling price per bed Variable cost per bed Expected sales (beds) The total fixed costs for the company are $403,200. Basic $24.00 $ 17.00 66,000 Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the expected product mix applies regardless of total sales, compute the break-even volume. c. If the product sales mix were to change to three Basic beds for each Custom bed, what would be the new break-even volume? Required A Required B Complete this question by entering your answers in the tabs below. Custom $ 59.00 $38.00 44,000 Basic beds Custom beds Required C Assuming that the expected product mix applies regardless of total sales, compute the break-even volume. Note: In your computations, round up the total units to break-even to the nearest whole number and round other intermediate…
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Biscayne’s Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Standard Deluxe Rental price per day $ 46.00 $ 54.00 Variable cost per day 18.50 23.20 Biscayne’s total fixed cost is $22,500.00 per month.Required:1. Determine Biscayne’s new break-even point in each of the following independent scenarios:a. Product mix is 40/60. (Do not round your intermediate calculations. Round your answer to the nearest whole number.) b. Sales price increases on both models by 15 percent. (Assume a product mix of 50/50.) (Do not round your intermediatecalculations. Round your answer to the nearest whole number.) c. Fixed costs increase by $3,800. (Assume a product mix of 50/50.) (Do not round your intermediate calculations. Round your answer to the nearest whole number.) d. Variable costs increase by 20 percent. (Assume a product mix of 50/50.) (Do not round your intermediate calculations. Round your answer to the nearest…
v.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAsslghmehtSesslohLocator=&lnprogress=lalse Update Target Profit Trailblazer Company sells a product for $155 per unit. The variable cost is $80 per unit, and fixed costs are $585,000. 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 $157,950. a. Break-even point in sales units units b. Break-even point in sales units if the company desires a target profit of $157,950 units
Problem 1 Xpress Corp. operates a fast food restaurant in San Fernando. Meals cost an average of $36 for which Xpress incurs variable costs of $14.40. Total fixed costs are $29,160. Required: a) Determine break even in units (persons) and sales dollars using the contribution margin technique. b) If the expected revenue is $ 65,000, what is Xpress' margin of safety ratio? c) If Xpress wants to earn a target income of $20,000, calculate the number of meals necessary.
A firm sell a single product for $6. Its variable cost per unit is $4 and fixed costs are $50. Ignoring income taxes, the amount of sales revenue needed for $20 profit is Select one: a. $210. b. $150. c. $35. d. $25.
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Required information [The following information applies to the questions displayed below.] Munoz Company makes and sells products with variable costs of $24 each. Munoz incurs annual fixed costs of $441,000. The current sales price is $87. Note: The requirements of this question are interdependent. For example, the $252,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements. Required e. If fixed costs drop to $308,000, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Req E1 Req E2 If fixed costs drop to $308,000, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Note: Do not round intermediate calculations. Round your final…
Diagnostic Supplies has expected sales of 98,000 units per year, carrying costs of $5 per unit, and an ordering cost of $8 per order. a. What is the economic ordering quantity? Economic ordering quantity b-1. What is the average inventory? Average inventory b-2. What is the total carrying cost? Total carrying cost units units
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