Data concerning Follick Corporation's single product appear below:Selling price per unitVariable expense per unitFixed expense per monthThe break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)Multiple Choice$275,720$452,000$226,000$ 340.00$ 74.80$176,280$176,280

Cost volume profit analysis is the technique used by management for decision-making. The methods…

Answered: Data concerning Follick Corporation's…

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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Similar questions

Given the following data: Selling price per unit Variable production cost per unit Fixed production cost Sales commission per unit Fixed selling expenses $ 2.00 $ 0.30 $3,000 $ 0.20 $1,500 The break-even point in dollars is: (Round your intermediate calculations to 2 decimal places.)
1. Tassone Corporation has provided the following data concerning its only product. The margin of safety as a percentage of sales is closest to: a. 73% b. 27% c. 37% d. 63% 2. The following data pertain to last month's operations. The break-even point in dollar sales is: a. $6,000 b. $7,500 c. $11,250 d. $18,000
Calculate the missing values. Express dollar values rounded to twe decimal places and break-even volumes rounded up to the next integer. Fixed Cost (FC) per month Variable Cost (VC) per unit Selling Price (S) per unit Break-even Total Variable Volume (x) per month Cost at Break-even (TVC) per month Total Revenue (TR) per month at Break-Even $8,700.00 $24.00 $36.00 $130,000.00 $470.00 1,030 $740,00 $79.00 22 $31.00 $53.00 440 SAVE P 11°C 23
Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The company's monthly fixed expense is $32,250. Required: 1. Calculate the unit sales needed to attain a target profit of $8,000. Note: Do not round intermediate calculations. 2. Calculate the dollar sales needed to attain a target profit of $8,700. Note: Round your intermediate calculations to the nearest whole number.
Sales (@ $25 per unit).... Cost of goods sold (@ $18 per unit). Gross margin..... $1,000,000 $1,250,000 720,000 900,000 280,000 350,000 Selling and administrative expenses" 210,000 Net operating income .. 230,000 S 70,000 $ 120,000 "S2 per unit variable; $130,000 fixed each year. page 294 The company's $18 unit product cost is computed as follows: Direct materials $ 4 Direct labor.. 7 Variable manufacturing overhead. 1 Fixed manufacturing overhead ($270,000 + 45,000 units). 6. Absorption costing unit product cost.... $18 Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced. 45,000 45,000 Units sold... 40,000 50,000 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3.…
Assume the following information: Selling price Variable expense ratio Fixed expenses Unit sales Multiple Choice O O How many units need to be sold to achieve a target profit of $16,900? 4,150 units 1,019 units 2,817 units Amount 6,220 units $30 80% $ 8,000 per month 3,400 per month
Creswell Corporation's fixed monthly expenses are $30,000 and its contribution margin ratio is 63%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $92,000? Multiple Choice $4,040 $27,960 $62,000 $57,960
CVP Analysis, *What IT?" AnalysisKevin Co. projected contribution-format income statement for the upcoming month is shownBelow Sales (500 units) $10000Variable expenses. 4000Contributions margin. 6000Fixed expenses. 1000Net operating income. 5000Required:a.) Compute the breakeven point in units.b) Compute the breakeven paint in dollars.c.) If the company wishes to earn a monthly target profit of $10,000, how many units must be sold each month?d.) Compute the company's margin of safety. State your answer in both dollar and percentage terms,e.) The company's manager thinks that adding a salaried sales staff member at a cost of 52,000 per month will increase sales by $4,000 per month. If he is correct, what will be the net dollar advantage or disadvantage of making this change?t.) Refer to the original data, the company's manager believes that a new production process will improve profitability. He plans to add new machinery that will cut variable expenses…
EBIT Sensitivity Stewart Industries sels its finished product for $9 12 per unit. Its fixed operating costs are $20,100, and the variable operating cost per unit is $5.89 a. Calculate the firm's earnings before interest and taxes (EBIT) for sales of 10,000 units b. Calculate the firm's EBIT for sales of 9,000 and 11,000 units, respectively c. Calculate the percentage changes in sales (from the 10,000-unit base level) and associated percentage changes in EBIT for the shifts in sales indicated in part (b) d. On the basis of your findings in part (e), comment on the sensitivity of changes in EBIT in response to changes in sales a. The firm's earmings before interest and taxes is S (Round to the nearest dollar.)
Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit $ 640,e00 Sales variable expenses $ 40 448, e00 28 Contribution margin 192,e00 $ 12 Fixed expenses 154,800 Net operating income 37, 200 Requlred: 1. What Is the monthly break-even polnt In unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3. How many units would have to be sold each month to attaln a target profit of $61,200? 4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. 5. What Is the company's CM ratlo? If the company can sell more units thereby Increasing sales by $65,000 per month and there Is no change in fixed expenses, by how much would you expect monthly net operating Income to Increase? Complete this question by entering your answers in the tabs below. Req 2 Reg 3 Req 1 Req 4 Req 5 What is the monthly break-even point in…
The following data pertain to W Company's two products: Product X Product Y Sales in Rands ........ R100 000 R80 000 Contribution margin ratio 48% 30% If fixed expenses for the company as a whole are R60 000 and the product mix is constant, the overall break-even point for the company would be: A. R150 000. B. R100 000. C. R153 846. D. R132 000.
If this year Eloise Ltd. had sales of $750,000, fixed costs of $150,000, and variable costs of $350,000, what is the margin of safety in dollars?(round numbers within the calculations to 2 decimal places and choose the closest whole number) $400,000 $466,981 $450,000 $425,650

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