Current Attempt in ProgressCrane Company had $290,600 of net income in 2021 when the unit selling price was $154, the unit variable costs were $94, and thefixed costs were $573,400. Management expects per unit data and total fixed costs to remain the same in 2022. The president ofCrane Company is under pressure from stockholders to increase net income by $57,600 in 2022.(a)Your answer is correct.Compute the number of units sold in 2021.Sales in 2021eTextbook and Media14400unitsAttempts: 1 of 3 used

To determine the units sold, we can use the net income formula:Net income = [(selling price -…

Answered: Current Attempt in Progress Crane…

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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13. In 2022, Company 13 sold its only product for $575 per unit. Variable costs per unit were $180. Fixed costs were $550,000. In 2023, the selling price per unit is expected to fall by 9%, variable costs per unit are expected to rise by 20%, while fixed costs are expected to rise by 3%. Since the company's stated objective for 2023 is to make a profit before tax of $1 million, how many units must it sell?
Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The following information to a single part which is used in the production of a wind instrument. The business earned Operating Income of $220,000 in 2019, when production was 3,000 units and the president of Darius is under pressure from shareholders to increase operating income in 2020 and is therefore considering the implementation of strategies mainly geared at increasing revenues and or decreasing variable costs. Data forvariable cost per unit and total fixed costs were as follows: Questions: a) Compute the selling price per unit in 2019, using the equation method. b) Given the sales of 3,000 units and the selling price calculated in (a), prepare a contribution margin income statement for the year ended December 31, 2019, detailing the components of total fixed costs and clearly showing contribution and net income. c) Calculate Benoit’s break-even point in units and in sales dollars. d) Calculate…
Please assist with questions A& B Please type so i can see clearly
In 2020, the Allen Company had consulting revenues of $1,000,000 while operating costs were $750,000. In 2021, Allen will be introducing a new service that will generate $150,000 in sales revenues and $60,000 in operating costs. Assuming no changes are expected for the other services, the differential revenue for 2021 will be: Multiple Choice $250,000. $60,000. $150,000. $90,000.
Rose Trading had RM210,000 of net profit in year 2021 when the selling price per unit was RM150, the variable costs per unit were RM90, and the fixed costs were RM570,000. Management expects per unit data and total fixed costs to remain the same in year 2022. The manager of Rose Trading is under pressure from investors to increase net profit by RM52,000 in year 2022.Required:(iii) Assume that Rose Trading sells the same number of units in year 2022 as it did in year 2021. What would the selling price have to be to reach the shareholders’ desired profit level?(iv) Assuming actual sales in year 2022 are 16,000 units with the new selling price as computed in (c), compute the margin of safety in (i) units and (ii) as a ratio. Briefly explain your findings. (Tips: Interpret about margin of safety)
Violet Sales Corp, reports the year-end information from 2023 as follows: Sales (35,500 units) $284,000 Cost of goods sold 105,000 Gross margin 179,000 Operating expenses 152,000 Operating income $27,000 Violet is developing the 2024 budget. In 2024 the company would like to increase selling prices by 3.5%, and as a result expects a decrease in sales volume of 14%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. What is budgeted sales for 2024?
I will post this several times, dont answer it if you already answer it! I will mark down the second SAME answer if ever.
Azure laptops has a manufacturing plant operating at full capacity has the sales of 3,000,000 for the year 2021. variable cost of the plant= 1,500,000. Fixed cost for the plant=750,000 8% debt amount=2,000,000 Equity capital =5,500,000 Find Azure laptops financial leverage for the year 2021.
Please help me. Thankyou.
please solve all parts within 30 minutes.
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