Case 2. (25 marks) The following operating plans of Hypothetical Company for the upcoming year2021 are presented to you for analysis.Plan 1Plan 2Sales volume500,000 units500,000 unitsUSDUSD2,000,0001,500,000200,00012,50057,500230,000SalesVariable expensesFixed expensesInterest expense_Income tax expenseNet income2,000,000500,0001,200,00025,00055,000220,000Common stocks100,000 shares50,000 sharesRequired:a. Compute the BEP for both plans. Prepare the BEP chart. Interpret your answers.b. Compute the DOL for both plans. Interpret your answers.c. Compute the DFL for both plans. Interpret your answers.d. Compute the DCL for both plans. Interpret your answers.+ 1CO

Operating activities are the function of a business directly related to providing its goods or…

Case 2. (25 marks) The following operating plans of Hypothetical Company for the upcoming year 2021 are presented to you for analysis. Plan 1 Plan 2 Sales volume 500,000 units 500,000 units USD USD Sales Variable expenses Fixed expenses Interest expense Income tax expense Net income 2,000,000 1,500,000 200,000 12,500 57,500 230,000 2,000,000 500,000 1,200,000 25,000 55,000 220,000 Common stocks 100,000 shares 50,000 shares

Case 2. (25 marks) The following operating plans of Hypothetical Company for the upcoming year 2021 are presented to you for analysis. Plan 1 Plan 2 Sales volume 500,000 units 500,000 units USD USD Sales Variable expenses Fixed expenses Interest expense Income tax expense Net income 2,000,000 1,500,000 200,000 12,500 57,500 230,000 2,000,000 500,000 1,200,000 25,000 55,000 220,000 Common stocks 100,000 shares 50,000 shares

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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8 The company recorded $5,000 sales with 60% contribution margin ratio in 2019. According to the sales manager, the company can increase the sales volume by 30% this year if the company spends $400 as advertisement expense and decreases the selling price by 10%, while unit variable cost remains the same. If CEO approves the plan, how does it affect the net operating income in 2020? А. $150 Decrease В. $250 Decrease С. $110 Increase D. $250 Increase Е. $510 Increase
Management Accouting
XYZ Company has net income of $1,000, revenues of $10,000, total assets of 50,000, current assets of $3,000 and current liabilities of $1500. What is their profit margin? Group of answer choices 2% 200% 2 10%
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
Help asap. Thanks in advance.
Q.1 Calculate the gross profit margin for Pearson & Litt for 2020. 2019 2020 Sales price per unit R15 R19 Variable cost per unit R6 R7 Fixed cost (FC) per annum R650 000 R 855 500 Fixed cost per unit R3 R4 Current assets R450 600 R560 700 Current liabilities R510 000 R780 000 Retained profit R21 809 R17 600 Net Sales R2 900 320 R 3 100 100 Cost of sales R390 000 R475 000
Elmer's Electronics has the following information for the first three years of business: 2019 10,000 2020 11,000 3,000 $600,000 2021 12,000 8,000 S600,000 S 100 S 220 Units sold Units produced Fixed production costs Variable production costs per unit Selling price per unit Fixed selling & administrative expense 25,000 $600,000 $ 100 $ 200 $200,000 100 $ 210 $200,000 $200,000 Calculate income under both full costing and variable costing. What is the cost of ending inventory under full costing and under variable costing (assume FIFO)?
I. Cost Behavior and Estimation (HP 6) The owners of Mormont Co., Jorah and Lyanna, are expecting sales for August, 2019 to be 250,000 units. Information about Mormont's Sales and costs over the past three months, are as follows: Units Sold Sales Cost of Goods Sold Wage & Salary Expense Admin Expense May O 200,000 300,000 $3,450,000 $5,175,000 $1,575,000 $2,312,500 $950,000 $975,000 $1,300,000 $1,600,000 June July 500,000 $8,625,000 $3,787,500 $1,925,000 $2,500,000 Required: Based on the information provided, provide a projected income statement, using the contribution margin format. 5
Problem 3 bod di due ull PRINCESS Processing Company has two products. The actual sales data for the past two years are as follows: oghud nommon zabivorq sogbed T nomexingmo 2019 2020 1 25,000 P40.00 27,000 42.00 2130,000 33,000 singhaud A bew serval pinnal PRINCESS expects that the percentage of increase in sales volume in 2020 against the 2019 performance will remain in 2021. However, the business predicts that the selling price in 2020 will be the same the following year. und si sillo soment o svolge ar to noraqiteq adTe here haver Product ABasis Product CD Units Unit price Units Unit Price nosoboqarltose cortad Required: Prepare the sales budget in 2021. 115 no P60.00 63.00 1990 tdi 15ybod A luore no bound bound Joghud bola
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