Complete the following 3 Wk 3 Financial Exercises: Problem Set 2, Part 2 problems using the following ratios: Sales level at which operating income is zero O If sales above breakeven, then profit O If sales below breakeven, then loss O Fixed expenses = total contribution margin Total sales total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio Problem 1. Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $14 per unit. 2. Calculate the break even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%. 3. Calculate the break even number of units with a target profit of $120,000 if the fixed expenses are $15,000 and the contribution margin is $60 per unit. Answer Insert your answer. Insert your answer. Insert your answer.

Complete the following 3 Wk 3 Financial Exercises: Problem Set 2, Part 2 problems using the following ratios: Sales level at which operating income is zero O If sales above breakeven, then profit O If sales below breakeven, then loss O Fixed expenses = total contribution margin Total sales total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio Problem 1. Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $14 per unit. 2. Calculate the break even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%. 3. Calculate the break even number of units with a target profit of $120,000 if the fixed expenses are $15,000 and the contribution margin is $60 per unit. Answer Insert your answer. Insert your answer. Insert your answer.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.17E

See similar textbooks

Similar questions

Chapter 10: Applying Excel: Exercise (Part 2 of 2) Requirement 2: Revise the data in your worksheet as follows: A 1 Chapter 10: Applying Excel 2 3 Data 4 Sales 5 6 7 Net operating income ROI Average operating assets Minumum required rate of return If your formulas are correct, you should get the correct answers to the following questions. a. What is the ROI? Residual income B % c. Why is the residual income positive? $ 64,000,000 $ 7,680,000 $ 16,000,000 25% b. What is the residual income? (Negative amount should be indicated by a minus sign.)
Question 4 All of the following represents a cost-volume-profit relationship except: a. olol Sales – variable expenses - profit = fixed expenses b. Total contribution margin + variable expenses = variable expenses + fixed expenses + profit С. Profit = total contribution margin + fixed expenses d. Sales - Variable expenses = fixed expenses + profit %3D e. Sales = total expenses + profit
1. Chapter 11: Applying Excel Data $ 72,000,000 $ 3,600,000 $ 18,000,000 24% 4 Sales Net operating income 6. Average operating assets 7 Minumum required rate of return If your formulas are correct, you should get the correct answers to the following questions. a. What is the ROI? ROI % b. What is the residual income? (Nagative amount should be indicated by a minus sign.) Residual income c. Why is the residual income negative? 2. 5.
Time left 0:33:23 Question All of the following represents a cost-volume-profit relationship except: O a. Profit = total contribution margin - fixed expenses ot yet nswered O b. Sales - Variable expenses fixed expenses + profit Marked out of Oc. Sales = total expenses - profit .00 O d. Sales - variable expenses - profit = fixed expenses 7 Flag uestion Oe. Total contribution margin + variable expenses = variable expenses + fixed expenses + profit Question 2 Sur Travel Company intends to sell its customers a special round-trip airline ticket package to Salalah. The Company will be able to purchase the package from Oman Air for OMR 150 each. The round-trip tickets will be sold for OMR 250 each and the airline intends to reimburse Sur Travel for any unsold ticket packages. Fixed costs for Sur Travel include OMR 5,000 in advertising costs.How many ticket packages will Sur Travel need Not yet answered to sell to break even? Marked out of 2.00 O a. 13 packages P Flag О . 20 расkages question…
All of the following represents a cost-volume-profit relationship except: O a. Sales - variable expenses + profit = fixed expenses O b. Sales = total expenses + profit O c. Profit = total contribution margin - fixed expenses O d. Total contribution margin + variable expenses = variable expenses + fixed expenses + profit O e. Sales- Variable expenses = fixed expenses + profit The breakeven point increases if: mere to search hp prt sc & 4 6 8 E R Y P C F 11 %3D G M 1S 10 LL
Tutorial Q. 5 Assuming that the cost structure and selling prices remain the same in Periods I and II, as given below: Period Sales (RM) Profit (RM) 1 240,000 18,000 2 280,000 26,000 a. Now find out what is the profit when sales are RM200,000, additionally calculate the sales required to earn a profit of RM40,000. b. Margin of safety at a profit of RM30,000 c. Variable cost in Period II.
Chapter 5: Applying Excel Data Unit sales Selling price per unit Variable expenses per unit Fixed expenses Enter a formula into each of the cells marked with a ? below Review Problem: CVP Relationships Compute the CM ratio and variable expense ratio Selling price per unit Variable expenses per unit Contribution margin per unit CM ratio Variable expense ratio Compute the break-even point Break-even in unit sales Break-even in dollar sales Compute the margin of safety Margin of safety in dollars Margin of safety percentage Compute the degree of operating leverage Sales Variable expenses Contribution margin Fixed expenses Net operating income Percentage increase in net operating income 1 2 3 4 5 6 7 A Chapter 5: Applying Excel Data Unit sales Selling price per unit Variable expenses per unit Fixed expenses $ B Net operating income (loss) $ $ $ $ 135,000 C 36,000 units % 10 per unit 4 per unit 20,000 units $240,000 $60 per unit $45 per unit $60 per unit $45 per unit $15 per unit 25% 75%…
Remember: Gross profit = SP- CP Activity 1.2 enti Complete the following table: Table 1.2: Finding the cost price, the gross profit or the selling price No Cast price Gross prafit Selling price 1.2.1 R5 600 R8 700 1.2.2 R3 400 30% 1.2.3 R6 800 R12 700 1.2.4 R17 500 R35 000 The owner of an enterprise has to calculate both the gross and the net profit. A business has certain operating expenses thai must be deducied from the gross profit to get the net profit. Examples of operating expenses are: • Salaries Wages • Rent paid/rent expense • Advertisements • Stationery. The cost of advertising the business is one example of an operating expense. Gross profit minaş operating expenses equals net profit."
Which of the following does not represent a cost-volume-profit analysis equation? O a. Contribution margin - fixed expenses - profit = 0 O b. Profit = contribution margin + fixed expenses O c. Sales = total expenses+ profit O d. Sales- fixed expenses – variable expenses = 0 O e. Sales+ fixed expenses + profit = contribution margin + sales US PAGE NE re to search 144 ort sc delete home %23 & 4. backspace R T. U D G K enter pause C M alt ctrl
[The following information applies to the questions displayed below.] The Chapter 5 Form worksheet appearing below recreates the Review Problem example in the text. Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell B13 enter the formula "= B5". After entering formulas in all of the cells that contained question marks, verify that the dollar amounts match the example in the text. Required: 1. Check your worksheet by changing the fixed expenses to $270,000. If your worksheet is operating properly, the degree of operating leverage should be 10. If you do not get this answer, find the errors in your worksheet and correct them.
Q.3.5 Complete the following table by filling in the missing amounts: (6) Mark-up on Cost Price Profit Selling Price Cost (excluding VAT) (excluding VAT) (excluding VAT) 25% 1 000 100% 6 000 1 500 2 500
O d. Contribution margin - fixed expenses - profit = 0 O e. Sales - fixed expenses - variable expenses = 0 Holding other factors constant, a company's contribution margin per unit will increase with: a. All answers given are NOT correct. b. any decrease in the selling price per unit O c. any increase in variable cost per unit O d. increase in its total fixed costs e. any increase in quantity sold. PAGE NEXT PA COLL CET 0001 A