ебоокBreak-even sales and cost-volume-profit chartFor the coming year, Cleves Company anticipates a unit selling price of $134, a unit variable cost of $67, and fixed costs of $629,800.Required:1. Compute the anticipated break-even sales (units).units2. Compute the sales (units) required to realize a target profit of $341,700.units3. Construct a cost-volume-profit chart on paper, assuming maximum sales of 18,800 units within the relevant range. From your chart, indicate whether each offollowing sales levels would produce a profit, a loss, or break-even.$1,768,800$1,581,200$1,259,600$951,400$750,4004. Determine the probable operating income (loss) if sales total 15,000 units. If required, use the minus sign to indicate a loss.

BEP is that point where there is no profit and no loss and it is the point at which both variable…

Answered: Break-even sales and cost-volume-profit…

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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Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following projected income statement: Sales $88,000 Total variable cost 23,760 Contribution margin $64,240 Total fixed cost 43,800 Operating income $20,440 Required: 1. Calculate the contribution margin ratio. Note: Enter as a percent, rounded to the nearest whole number. fill in the blank 1 % 2. Calculate the variable cost ratio. Note: Enter as a percent, rounded to the nearest whole number.fill in the blank 2 % 3. Calculate the break-even sales revenue for Ashton. Note: Round your answer to the nearest dollar. $fill in the blank 3 4. How could Ashton increase projected operating income without increasing the total sales revenue? Decrease the contribution margin ratio
v.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Lo... Break-Even Sales and Sales to Realize a Target Profit For the current year ending October 31, Papadakis Company expects fixed costs of $422,400, a unit variable cost of $46, and a unit selling price of $68. a. Compute the anticipated break-even sales (units). units. b. Compute the sales (units) required to realize a target profit of $96,800. units Check My Work Previous 6 Next Oct 26 6:18
A company reports the following contribution margin income statement. Contribution Margin Income Statement For Year Ended December 31 Sales (19,200 units at $22.50 each) Variable costs (19,200 units at $18.00 each) Contribution margin. Fixed costs Income The manager believes the company can increase sales volume to 22,000 total units by increasing advertising costs by $16,200. Required A Required B Complete this question by entering your answers in the tabs below. Contribution Margin Income Statement For Year Ended December 31 $ 432,000 345,600 Prepare a contribution margin income statement assuming the company incurs the additional advertising costs and sales volume increases to 22,000 units. Sales Variable costs Contribution margin 86,400 64,800 $ 21,600 Fixed costs Income
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: EstimatedFixed Cost Estimated Variable Cost(per unit sold) Production costs: Direct materials — $19 Direct labor — 13 Factory overhead $105,800 10 Selling expenses: Sales salaries and commissions 22,000 4 Advertising 7,400 — Travel 1,700 — Miscellaneous selling expense 1,800 4 Administrative expenses: Office and officers' salaries 21,500 — Supplies 2,600…
Assume the following information: Selling price Variable expense ratio Fixed expenses Unit sales Multiple Choice O O How many units need to be sold to achieve a target profit of $16,900? 4,150 units 1,019 units 2,817 units Amount 6,220 units $30 80% $ 8,000 per month 3,400 per month
Breakeven analysis and target profit, taxes, what - if analysis Pome Company produces a single product: the Core. The following table provides the Core's details: Per unlt Sellingprice 10% of selling price For the upcoming 7 Labor cost. 6 Variable overhead cost. . . . . 2 Sales commissions.. .$30 Materials cost year, Pome Company expects to sell 500,000 units of the Core, have total fixed costs of $4,500,000, and face a tax rate of 30% of income. Required (a) At the expected level of unit sales, what is the after - tax income? (b)What is the breakeven unit sales of the Core? (c) The marketing manager believes that if the Core's price is cut by $2 unit, sales will increase by 10% . Is this change desirable from a financial perspective? (d)Ignore part (c) when answering this question. The production manager believes that if Pome Company rents a new machine, total manufacturing variable costs ( materials, labor, and overhead) per unit will each drop by 10% . What is the annual rent for…
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: EstimatedFixed Cost Estimated Variable Cost(per unit sold) Production costs: Direct materials — $28 Direct labor — 19 Factory overhead $495,200 14 Selling expenses: Sales salaries and commissions 102,900 6 Advertising 34,800 — Travel 7,700 — Miscellaneous selling expense 8,500 6 Administrative expenses: Office and officers' salaries 100,600 — Supplies 12,400…
Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (8,400 units) Variable expenses Contribution margin Total $ 260,400 159,600 Per Unit $ 31.00 19.00 $ 12.00 100,800 Fixed expenses Net operating income 55,300 $ 45,500 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units?
Contribution margin, break-even sales, cost-volume-profit chart, marginof safety, and operating leverageBelmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for theyear is therefore assumed to be equal to the cost of goods sold. With thisin mind, the various department heads were asked to submit estimatesof the costs for their departments during the year. A summary report ofthese estimates is as follows: (attached) It is expected that 12,000 units will be sold at a price of $240 a unit.Maximum sales within the relevant range are 18,000 units.Instructions 1. Prepare an estimated income statement for 20Y7.2. What is the expected contribution margin ratio?3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart indicating the break-evensales.5. What is the expected margin of safety in dollars and as apercentage of sales?6. Determine the operating leverage.
Break-even sales and sales to realize operating income For the current year ended March 31, Kadel Company expects fixed costs of $597,600, a unit variable cost of $48, and a unit selling price of $72. a. Compute the anticipated break-even sales (units).fill in the blank 1 of 1 units b. Compute the sales (units) required to realize operating income of $136,800.fill in the blank 1 of 1 units
Break-even sales and sales to realize operating income For the current year ended March 31, Cosgrove Company expects fixed costs of $459,800, a unit variable cost of $44, and a unit selling price of $66. a. Compute the anticipated break-even sales (units). units b. Compute the sales (units) required to realize operating income of $105,600. units
Use all the Cost-Volume-Profit related applications to analyse the company and then determine the amount that the company should make, at least, to make profit, and a 10% profit.

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