Break-Even Units and Sales Revenue: Margin of SafetyDupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 2,890,000 pages at a price of $0.06 each in the coming year. Product costsinclude:Direct materialsDirect laborVariable overheadTotal fixed overhead$0.009$0.003$0.001$84,320There is no variable selling expense; fixed selling and administrative expenses total $36,000. In your computations that involve the contribution margin ratio, do not round the ratio.1. Calculate the break-even point in units.units2. Calculate the break-even point in sales revenue.3. Calculate the margin of safety in units for the coming year.units

Introduction:- CVP analysis is used to identify the changes in costs and volume affect a…

Answered: Calculate the break-even point in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Vishnu
A total of 50,000 units were sold last year. The contribution margin per unit was $4, and fixed expenses totaled $50,000 for the year. This year fixed expenses are expected to increase BY $20,000, but the contribution margin per unit will remain unchanged. How many units must be sold this year to earn the same profit as was earned last year? O 37,500 O 50,000 O 17,500 O 58,500 O 55,000
4) Big Foot recorded a gross margin of 55% in last year. If cash discounts of the store were 2% while alteration costs were 1% of its net sales in last year, what was the maintained markup percentage Big Foot achieved in last year?
Al-Morooj Co. has the following sales forecasts for its hip waders next year: First Quarter 11000 units Second Quarter 4% increase over first quarter Third Quarter 8% decrease from first quarter Fourth Quarter 4% decrease over first quarter Required: Calculate the Al-Morooj's estimated sales in units for next year.
Spartans Inc gathered data on sales (in units) and costs ($) over the past 12 months (displayed below) and estimated its cost function as: Y = $2,395 + $34.81(X) Month January February March April May June July August September October November Sales (units) December 228 129 218 156 177 68 129 83 90 107 139 Costs ($) $10,332 $8,651 $11,294 $9,734 $10,006 $4,762 $6,837 $5,138 $8,004 $7,774 $10,869 $6,935 98 (data used to generate cost function) Over the next three months Spartans Inc. has forecasted units sales (in units) as shown below. Estimate the total costs to be incurred and indicate whether the cost function generates a reliable forecast value
1-Due to an increase in labor rates, the company estimates that variable expenses will increase by $3 per ball next year. If this change takes place and the selling price per ball remains constant at $25, what will be the new CM ratio and break-even point in balls? 2. Refer to the data in (2) above. If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $90,000, as last year? 3. Refer again to the data in (2) above. The president feels that the company must raise the selling price of its basketballs. If Northwood Company wants to maintain the same CM ratio as last year, what selling price per ball must it charge next year to cover the increased labor costs?
Please help with 7 through 10. Thank you!:)
Cullumber Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,990 units Sales price $40 per unit Variable costs $20 per unit Fixed costs $35,880
For the coming year, Cleves Company anticipates a unit selling price of $80, a unit variable cost of $40, and fixed costs of $248,000. Required: 1. Compute the anticipated break-even sales (units). units 2. Compute the sales (units) required to realize a target profit of $96,000. units
Accounting Question
1. Calculate the total net profit for the estimated figures. 2. Calculate the break-even quantity 3. Calculate the break-even value 4. Calculate the break-even value using the marginal income ratio.5. Calculate the target sales volume to achieve a profit of R920 500.. 6. Calculate the new break-even quantity and value if the selling price is increased by 12%7. Calculate the margin of safety in units at the original budgeted volume and price
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:

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Calculate the break-even point in units. units Calculate the break-even point in sales revenue. Calculate the margin of safety in units for the coming year.