Please given correct answer for Financial accounting question I need step by step explanation Assume the following information:Volume: 500,000 units•Total variable costs: $12,500,000Total fixed costs: $8,000,000Revenue per unit: $40If the company decreases the volume to 480,000 units, what is the profitper unit assuming both 500,000 units and 480,000 units are within therelevant range?

Step 1: Definition Variable Costing:Variable costing is a costing method where only variable costs…

Answered: Assume the following information:…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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Both units are within the relevant range?
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Total variable costs:19200000, total fixed costs: 10400000
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Fill In The Blank Outlast Company's projected profit for the coming year follows: Total Per Unit Sales P200,000 P20 Less: Variable costs (120,000) (12) Contribution margin 80,000 P8 Less Fixed expenses (64,000) Operating Profit P 16,000 Requirements: 1. How many units must be sold to earn a profit of P30,000? units 3. Compute the additional profit that Outlast would earn if sales were P25,000 more than expected? P 3. For the projected level of sales, what is the margin of safety? P 4. Suppose Outlast would like to earn operating income equal to 20 percent of sales revenue. How many units must be sold for this goal to be realized? units NOTE: *If your answer is in monetary value, OMIT the peso sign (ex: if the answer is One hundred pesos just type 100) **If your answer is in thousands value, do not put space/s between the numbers and do not forget to type comma to indicate thousand value (ex: if the answer is one thousand just type 1,000) ***If your answer has decimal places, round your…
what is the unit variable cost ? need help
If fixed costs are $300,000, the unit selling price is $25, and the unit variable costs are $20, what is the break-even sales (units) if the variable costs are decreased by $2? A. 42,857 units B. 17,143 units C. 60,000 units D. 100,000 units
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2. A company provided the following information: Sales Variable costs Fixed costs P500,000 P100,000 P200,000 | Required: A. What is the contribution margin ratio? 500,000 – 100,000 = 400,000 "Contribution Margin" 400,000/500,000 = 0.8 What is the level of sales in amount necessary to generate a profit of P40,000? C. What is the contribution margin ratio if the sales price is increased by 10%? Using the information in part C, what level of sales in amount is necessary to generate a profit of P40,000? D. B.

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