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 If the company wishes to increase its total dollar contribution margin by 30% in 2020, by how much will it need to increase its sales if selling price per unit, variable price per unit and total fixed costs remain constant? Total increase in sales required:

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 If the company wishes to increase its total dollar contribution margin by 30% in 2020, by how much will it need to increase its sales if selling price per unit, variable price per unit and total fixed costs remain constant? Total increase in sales required:

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

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Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000
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 $35,880
An industry is going to launch a new product in the market in the year 2018. The data pertaining to the costs and the estimated sales is provided as follows 1. Fixed cost for the year 2018-2019 is 20000$. 2. The variable cost per unit is 12$. 3. The estimated sales are 800000$. 4. If each unit is sold at 30$. Find out 1. Break-even point. 2. The profit at a turn-over of 25000 units. 3. Margin of safety in terms of units and sales. 4. If a profit target is 1200000$, compute the turn over required. 5. Also construct the break-even chart and show the details on it.
Company produces and sells X and Y. In 2020, 10,000 units of X were sold at P10 per unit with contribution margin P4 per unit and 15,000 units of Y were sold at P12 per unit with contribution margin P5 per unit. Total fixed cost is P100,000. In 2021, which of the following will result to higher net profit? 5% decrease in unit selling prices accompanied by 5% increase in sales volume 5% increase in unit selling prices 10% increase in unit selling prices and unit variable costs 10% increase in unit selling prices accompanied by 10% decrease in sales volume.
1. What is the margin of safety in peso value? 2. What is the margin of safety in units? 3. If the company wishes to increase its total peso value contribution margin by 40% in 2021, by how much will it need to increase its sales if all other factors remain constant?
Covid2020 Furniture is operating at almost 100% capacity. The company expects sales to increaseby 20% in 2020. To satisfy the demand for its products, the company is considering twoalternatives: The first alternative would increase fixed costs by 15% but not affect variable costs. The second alternative would not affect fixed costs but increase variable costs to 60% ofthe selling price of the company’s product.Covid2020 Furniture’s income statement for 2019 is as follows:Sales RM1,800,000Costs:Variable RM810,000Fixed RM165,000 RM975,000Income before taxes RM825,000REQUIRED:(a) Determine the break-even point in sales dollars for 2020 under the first alternative.(b) Determine the break-even point in sales dollars for 2020 under the second alternative.(c) Determine projected income before taxes for 2020 under each of the alternatives.(d) Which alternative would you recommend? Why?
For XYZ Company , how many units of their product would have to be sold to yield a target operating income of $92,000 for the financial year ending 2021, assuming variable costs are $50 per unittotal fixed costs are \$8, , and the unit selling price is $60 ? a. 800 units b. 2,000 units c. 10,000 units d. 9,200 units
In 2019, Papa Company provided the following data: Sales price per unit P100; Variable cost per unit P60; Total fixed cost at P1,500,000. What is the profit if the company operates at 45,000-unit volume? O P600,000 O P300,000 O P 45,000 O None of the above
For XYZ Company, how many units of their product would have to be sold to yield a target operating income of $46,000 for the financial year ending 2021, assuming variable costs are $50 per unit, total fixed costs are $4,000, and ?the unit selling price is $60 units 5,000 .a O units 400 b O units 4,600 .c O units 1,000 .d O
In 2020, National Co. sold 1,000 units at P500 each, and earned net income of P40,000. Variable expenses were P300 per unit, and fixed expenses were P160,000. The same selling price is expected for 2021. National Co.’s variable cost per unit will rise by 10% in 2021 due to increasing material costs, so they are tentatively planning to cut fixed costs by P20,000 and to increase the selling price by P150. How many units must National Co. sell in 2021 to maintain the same income level as 2020? (round to whole number)
Karina Company prepared the following preliminary forecast concerning product Jungling Boot for 2021 assuming no expenditure for advertising: Selling price per unit P10 100,000 Unit sales Variable cost Fixed Cost P600,000 P300,000 Based on the market study in December 2020, Karina estimated that it could increase the unit selling price by 15% and increase the unit sales volume by 10% if P100,000 were spent on advertising. Assuming that Wilson incorporates these changes in its 2021 forecast, what should be the operating income for Product Jungling Boot? P205,000 P175,000 P190,000 ) P365,000 2
Dalen Company prepared the following preliminary forecast concerning Product D for 2019 assuming no expenditure for advertising (refer to the attached picture): Based on a market study, Dalen estimates that it could increase the unit selling price by 15% and increase the unit sales volume by 10% if P100,000 was spent in advertising. Assuming that Dalen incorporates these changes in its 2019 forecast, what should be the operating income for Product D? selling price per unit 10 unit sales 100000 variable cost 600000 fixed cost 300000