Cox Electric makes electronic components and has estimated the following for a new design of one of its products.. Fixed cost $27,000Material cost per unit - $0.17Labor cost per unit $0.11Revenue per unit = $0.68Note that fixed cost is incurred regardless of the amount produced. Per-unit material and labor cost together make up the variable cost per unit. Assuming that Cox Electricsells all that it produces, profit is calculated by subtracting the fixed cost and total variable cost from total revenue.Construct an appropriate spreadsheet model to find the profit based on a given production level and use the spreadsheet model to answer these questions,(a) Construct a one-way data table with production volume as the column input and profit as the output. Breakeven occurs when profit goes from a negative to a positivevalue; that is, breakeven is when total revenue the total cost, yielding a profit of zero. Vary production volume from 0 to 100,000 in increments of 10,000. In whichinterval of production volume does breakeven occur?units(b) Use Goal Seek to find the exact breakeven point, Assign Set cell: equal to the location of profit, To value: 0, and By changing cell: equal to the location of theproduction volume in your model.units

Fixed costs remain constant or the same irrespective of the number of units produced. On the other…

Answered: Construct an appropriate spreadsheet…

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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Assume that the firm whose cost structure is depicted in the figure expects to produce a loss for the upcoming period. The loss would be shown on the graph: by the area diagonally to the right of the break-even point. in some other area not mentioned above. by the area immediately above the break-even point. by the area immediately below the total cost line. by the area diagonally to the left of the break-even point.
What can the weighted average contribution margin ratio be used for? Multiple Choice To solve for a measure, at any level of sales volume, of the sensitivity of operating profit to changes in volume. Breakeven and profit planning for sales volume expressed in dollars (Y) rather than units (Q). To calculate an average per-unit contribution margin based on an assumed sales mix. To figure out the relative proportion in which a company’s products (or services) are sold. To determine the extent of fixed costs in an organization’s cost structure.
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
On the break-even chart you can see the three variants of the break-even points. Name the items marked with numbers in the figure. Choose the correct answers. 7 10 6 Choose... Choose... 7 Choose... 1 Choose... 9. Choose... v Choose... Total cost function (linear) Turning point of profitability Target profit (expected profit) Turning point of economic efficiency Volume Amortisation Total cost - amortisation Total revenue function Turning point of liquidity Total cost + Target profit
If a company chooses a price to charge for its product by adding up all the expenses necessary to make the product and then adding in a profit, this is known as: a) Target Costing Ob) Skimming Pricing Oc) Cost-Based Pricing Od) Odd-Even Pricing Oe) Penetration Pricing
1. Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the table: a. What is the total contribution margin? b. What is the total variable expense? c. How many units were sold? d. What is the per-unit variable expense? e. What is the per-unit contribution margin? 2. Answer the following questions about breakeven analysis: a. What is the breakeven point in units? b. What is the breakeven point in sales dollars? 3. Answer the following questions about target profit analysis and safety margin: a. How many units must the company sell in order to earn a profit of $48,000? b. What is the current margin of safety in units? c. What is the margin of safety in sales dollars? d. What is the margin of safety in percentage?
Please explain this statement thoroughly. "To estimate what the profit will be at various levels of activity, multiply the number of units to be sold above or below the break-even point by the unit contribution margin."
:On the cost-volume-profit graph, the intersection between the total cost line and (Y) axis represents The profit area a O The fixed cost amount b O The loss area .c O The contribution margin per unit .d O The variable cost amount eeV@hdows Go to Settings to activate Wil 081 ENG hp 19 11 inprt sc delete home end & num 6 8 9. backspace = lock V { Y U 7 V 8. home H. K enter pause N 1 shift 上 end alt ctrl Pm 近

If an organization wants to make a profit, it must generate more sales revenue than the total costs it incurs. This relation can be expressed using which of the following profit equations? O a. Operating income = [(Sales price per unit - Variable cost per unit) x #units sold] - Fixed cost O b. Operating income = [Sales price per unit - Fixed cost per unit) x # units produced] -Variable cost Oc Operating income Sales revenue - Total variable costs - Discretionary costs O d. Operating income - Sales revenue - Committed costs - Fixed costs
2. What is the expected contribution margin ratio? Round to the nearest whole percent. 3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 5. What is the expected margin of safety in dollars and as a percentage of sales? (Round to the nearest whole percent.) 6. Determine the operating leverage. Round to one decimal place.
What are the answers for the following? Construct a cost-volume-profit chart on your own paper. What is the break-even sales? What is the expected margin of safety in dollars and as a percentage of sales? Determine the operating leverage. Round to one decimal place.
Choose the correct letter of answer On a scattergrap, the diagonal line cuts across two sets of observations, namely: 600:200, and 900:500 which refer to costs and units, respectively. The fixed costs is plotted in the graph at P400. In this case, the variable cost per unit is equal to: a. P1.00b. P1.25c. P1.50d. P1.12

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