Cost-Volume Profit Analysis Incline Company generated $1,400,000 in revenue selling 800 units of its only product. Each unit has a contribution margin of $280. The company has fixed costs of $125/unit at the current production volume (assume unit production volume equals unit sales volume). a. What is the contribution margin ratio for Incline’s product? Answer 1 % b. Calculate the break-even point in revenue for Incline? $Answer 2

Cost-Volume Profit Analysis Incline Company generated $1,400,000 in revenue selling 800 units of its only product. Each unit has a contribution margin of $280. The company has fixed costs of $125/unit at the current production volume (assume unit production volume equals unit sales volume). a. What is the contribution margin ratio for Incline’s product? Answer 1 % b. Calculate the break-even point in revenue for Incline? $Answer 2

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...

See similar textbooks

Similar questions

West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.
Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
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?
I need this question answer Accounting question
Parker industries sells solve this accounting questions
Get correct answer general accounting
Provide this question solution general accounting
Subject: acounting
A company has assessed the profitability of its three products as shown here: Product A Product B Product C Total Sales (units) 3,000 5,000 2,000 10,000 £ £ Price 15.00 10.00 5.00 Variable costs 6.00 4.00 3.00 Divisible fixed costs 2.00 1.00 0.50 Non-divisible fixed costs 2.00 2.00 2.00 Profit/(Loss) 5.00 3.00 (0.50) As a result of this, it has been suggested that Product C should be dropped. All other things being equal what would be the financial impact of dropping Product C? A B Profit would increase by £1,000. Profit would increase by £2,000. Profit would fall by £3,000. C D Profit would fall by £4,000. £
Question 1: A company produces and sells two products with the following costs: Product X Product Y Variable costs per Br. of sales Fixed costs per period Br.0.45 Br.1 212 000 Br.0.6 Br.1 212 000 Total sales revenue is currently generated by the two products in the following proportions: Product X 70% Product Y 30% Required: Calculate the break-even sales revenue per period, based on the sales mix assumed Prepare a profit–volume chart of the above situation for sales revenue up to Br.4 000 Show on the same chart the effect of a change in the sales mix to product X 50%, product Y 50%. Clearly indicate on the chart the break-even point for each situation. Of the fixed costs 455 000 are attributable to product X. Calculate the sales revenue required on product X in order to recover the attributable fixed costs and provide a netcontribution of Br.700 000 towards general fixed costs and profit.
Cost-Volume-Profit Analysis Gannon Company sells a single product for $18.75 per unit. Variable costs are $9 per unit and fixed costs are $134,940 at an operating level of 12,000 to 25,000 units. Round UP answers to the nearest unit, when applicable. a. What is Gannon Company's break-even point in units? 0 b. How many units must be sold to earn $20,000 before income tax? 0 units units c. How many units must be sold to earn $30,000 after income tax, assuming a 40% tax rate? 0 units