ble cost per unit1.3ginal income perREQUIREDUse the information provided below to calculate the following independently:1.3.1Net profit1.3.3Marginal income per unit that will enable the project to break even1.3.2 Break-even quantity if the selling price increases to R130 per unitINFORMATIONCaprice Limited plans to start Project Star and the following are the forecasts for 2024SalesDirect materials cost per unitDirect labour cost per unitVariable selling costsManufacturing overhead costs (all fixed)Fixed selling and administrative costs50 000 units at R120 per unitR36R2410% of salesR841 000R1 040 000(2 marks)(2 marks)(4 marks)

The objective of the question is to calculate the net profit, marginal income per unit that will…

Answered: ble cost per unit 1.3 ginal income per…

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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p1
1. Calculate the project profitability index for each product. 2. Calculate the simple rate of return for each product. 3. For each measure, identify whether Product A or Product B is preferred.
A company is considering a project with a cash break-even point of 25,394 units. The selling price is RM18 a unit, the variable cost per unit is RM8, and depreciation is RM89, 800. What is the projected amount of fixed costs? Select one: a. RM253,94O b. RM306,108 c. RM324,512 d. RM316,728
Net Present Value Method and Present Value Index Diamond and Turf Inc. is considering an investment in one of two machines. The sewing machine will increase productivity from sewing 150 baseballs per hour to sewing 270 per hour. The contribution margin per unit is $0.36 per baseball. Assume that any increased production of baseballs can be sold. The second machine is an automatic packing machine for the golf ball line. The packing machine will reduce packing labor cost. The labor cost saved is equivalent to $24 per hour. The sewing machine will cost $221,200, will have a six-year life, and will operate for 1,400 hours per year. The packing machine will cost $101,600, will have a six-year life, and will operate for 1,200 hours per year. Diamond and Turf seeks a minimum rate of return of 10% on its investments. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283…
Breakeven point-Algebraic Kate Rowland wishes to estimate the number of flower arrangements she must sell at $24.72 to break even. She has estimated fixed operating costs of $11,740 per year and variable operating costs of $16.36 per arrangement. How many flower arrangements must Kate sell to break even on operating ne costs? The operating breakeven point is units. (Round to the nearest integer.) ts Text dia Librai Calculat Resource Enter your answer in the answer box and then click Check Answer. c Study Check Answer Clear All All parts showing unication Tools > Ouestion 10 (0/1) Question 11 (0/1) Question 12 (0/1). Question 9 (0/1) Type here to search
Appalachian Crafts is analyzing a project with expected sales of 18,900 units, ±2 percent. The expected variable cost per unit is $23 and the expected fixed costs are $52,000. Cost estimates are considered accurate within a range of ±1 percent. The depreciation expense is $18,400. The sale price is estimated at $54 a unit, ±2 percent. What is the total dollar difference between the revenue using the optimistic sale price versus the expected sale price?
KLA Cost Ziege Systems is considering the following independent projects for the coming year Project Required Investorent Rate of Return Risk A $4 million 12.25% Hish High $5 million Low B C DEFGH $3 million $2 million $6 million $5 million $6 million $3 million 500 14.75 10.25 9.75 13.25 13.25 7.75 12.25 million Average High Average Low Low } If Ziege con only invest a total of $13 million what would be the dollar size of its capital budget? $ million What would be the dollar size of its capital budget? $
Hanisch Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $32 per unit, management projects sales of 30,000 units. The new product would require an investment of $300,000. The desired return on investment is 16%. The target cost per unit is closest to: (Do not round intermediate calculations.) Question 10 options: $40.00 $30.40 $3.20 $32.00
The Company has three potential projects from which to choose. Selected information on each of the three projects follows: Project A Project B Project C Investment required $44,400 $55,700 $53,100 Net present value of project $49,100 $74,100 $69,100 Using the profitability index, rank the projects from most profitable to least profitable. A, B, C B, A, C B, C, A C, B, A
PT Manunggal sells its production during 2022 as many as 15,000 units with a selling price of Rp. 10,000 per unit. To produce 15,000 units, the fixed costs are Rp. 50 million and variable costs are Rp. 4,000 per unit. For 2023, it is estimated that the number of units sold will increase by 10%. Requested: Assuming the selling price, fixed costs and variable costs do not change, calculate the estimated operating profit/loss for 2023. Notes : Write it down along with the complete way of working
E3 Doni is a self-manufactured, he wants to calculate how much the price for their new product if the targeted initial margin is 65%; given all-in production cost is $15, transport & logistic cost is 5.8% from the production cost, and revenue sharing cost would be 12% from landing cost (production + transport + logistic).
Company XYZ is planning to sell 20,000 units at a price of $5 per unit during the month of December. The company has total fixed costs of $60,000. Assume a planned margin of safety of $14,000, what is the breakeven point in ($) value? Select one: O a. 86,000 O b. 46,000 O c. 26,000 O d. 40,000 O e. None of the given answers

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