Brumlow Company has a contribution margin ratio of 25%. The company is considering a proposal that will increase sales by $100,000. What increase in profit can be expected assuming total fixed costs increase by $20,000? A. $20,000 B. $15,000 C. $25,000 D. $5,000
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- Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
- Brumlow Company has a contribution margin ratio of 25%. The company is considering a proposal that will increase sales by $100,000. What increase in profit can be expected assuming total fixed costs increase by $20,000? A. $20,000 B. $15,000 C. $25,000 D. $5,000Rolles Company has a contribution margin ratio of 27%. The company is considering a proposal that will increase sales by $130,000. What increase in profit can be expected assuming total fixed costs increase by $25,000? A. $20,000 B. $10,100 C. $25,000 D. $5,000.Rolles Company has a contribution margin ratio of 27%. The company is considering a proposal that will increase sales by $130,000. What increase in profit can be expected assuming total fixed costs increase by $25,000? A. $20,000 B. $10,100 C. $25,000 D. $5,000 {ACCOUNTING}
- Rolles company has a contribution margin ratioAjani Company has variable costs equal to 40% of sales. The company is considering a proposal that will increase sales by $10,000 and total fixed costs by $6,000. By what amount will net income increase? A. $6,000 B. $4,000 C. $2,000 D. $0Financial accounting
- 3. The management of Lambda Corporation has received the following forecast for the next year. Sales revenue $600,000Fixed costs $275,000Variable costs 270,000Total costs 545,000Net income $ 55,000 Capacity is a sales volume of $800,000.a. Computei. the contribution margin ii.the contribution rate. b. Compute the break-even pointi. in dollars; ii. as a percent of capacity. c. Determine the break-even volume in dollars if fixed costs are increased by $40,000, while variable costs are held to 40% of sales.Ajani Company has variable costs equal to 40% of sales. The company is considering a proposal that will increase sales by $10,000 and total fixed costs by $6,000. By what amount will net income increase? $6,000 $4,000 $2,000 $0Fill 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…
