Boss Enterprises currently sells its products for $30 per unit. Management is contemplating a 40% increase in the selling price for the next year. Variable costs are currently 40% of sales revenue and are not expected to change next year. Fixed expenses are $126,000 per year.What is the breakeven point in units at the current selling price?O A. 18 unitsов.10,500 unitsO C. 3,000 unitsO D. 7,000 units

Break-Even Point (in units):It’s defined as the point where sales and expenses are the same or when…

Answered: Boss Enterprises currently sells its…

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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A Company manufactures and sells stationary. Last year, the stationary it sold for £15 each, andthe variable expense was £4.50 per unit. The company needed to sell 20,000 of stationary tobreak even. The operating profit last year was €16,800. The Company anticipations for thecoming year include the following:The selling price per stationary will be £18.00. Variable expenses will increase by one third. Fixedexpenses will increase by 10 per cent. Sales for the coming year are expected to exceed last year's by 1,000 units. If this occurs,sales volume in the coming year will be: A. 22,600 B. 21,960 C. 23,400 D. 21,000
1. The sales volume of a company is one million dollars per month. If the company spends ($350,000.) per month as fixed costs, and the variable costs are equal to ($0.5) of each dollar. To check sales, it is required: A - Determine the corresponding volume of production, the equilibrium cat? B - What is the effect of reducing variable costs by 25% on the net profit, if that increase was the result of updates in production lines that caused an increase in fixed costs by 10%. Note that sales volume will not change? C- What is the effect of reducing fixed costs by (10%) on the net profit, if that reduction is Will it cause an increase in variable costs by a similar percentage, knowing that the sales volume will not change?
For items 22 to 24: The Warner Company sells its only product for P30 and the variable costs amount to P21 per unit. Fixed cost for each year is P270,000. 22. Assuming the desired profit for next year (if all costs and selling price remains the same) is placed at P90,000, what is the margin of safety in units? A. 30,000 B. 20,000 C. 10,000 D. 40,000 23. What will be the projected sales in pesos with such desired profits of P90,000? A. P 900,000 B. P 1,200,000 C. P 300,000 D. P 600,000 24. If instead, the desired profit is 5% of sales, how many units must be sold to achieve such A. 36,000 B. 40,000 C. 25,714 D. 31500
Mazon Inc. plans to sell 7,000 units each quarter next year. During the first two quarters each unit will sell for OMR12; during the last two quarters the sales price will increase OMR1.50 per unit. What is Mazon's estimated sales revenue for next year? Select one: a. OMR 397,000 b. OMR 357,000 c. OMR 378,000 d. OMR 336,000
please answer my question quickly. Thanks
Your Company is considering the addition of a new product to its current product lines. The expected cost and revenue data for the new product are as follows: Annual sales in units 3,000 Selling price per unit $309 Variable costs per unit: Production $130 Selling $50 Traceable annual fixed costs: Production $51,000 Selling $75,000 Allocated annual fixed cost $54,000 If the new product is added to the existing product line, then sales of existing products will decline. As a consequence, the contribution margin of the existing product lines is expected to drop $78,000 per year. What is the increase in net income if the new product is added next year? This is a reverse drop the segment. New CM is positive and new FC and lost CM are negative.
(b) The cost of materials is expected to rise by 20%, while total fixed costs are expected to rise by RM13,000 per year:Calculate the number of units that must be sold for the company's net profit to be maintained. Assume that the rest of the data is unchanged. Determine a new break-even point and margin of safety in bottles if the selling price change to RM 6 per packet. Assume that all other variables remain constant. please provide calculations for each of them.
Compony XYZ is currently making sales of $ 200,000. At this level, the variable experies were $ 100.000 company XYZ expects sales to increase to $ 250,000 in the coming period with no changer is expected to find expenses. How much is the expected change pront:
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