e break-even pointi

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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10:27
ll LTE
ejercicio de practica cap 3 2020
You have been provided with the following information regarding the XYZ company
Selling Price
$40
Variable
manufacturing cost
Fixed manufacturing
cost
Variable selling &
ladministrative costs
$22
$150,000 per
1month
$6
Fixed selling &
administrative costs
$120,000 per
Imonth
1. What is the expected operating profit for the
upcoming year for 30,000 units forecasted?
2. What is the break-even point in dollars?
3. What is the number in units in which profits
are equal to zero?
4. what is the contribution margin per unit?
5. what is the contribution margin in dollars?
6. How much in sales dollars is required to
generate an operating profit of $30,000?
7. what is the contribution margin ratio?
8. How much in units is required to generate an
of $24,000 after tax ( tax rate 20%)
operating profit
9. if the forecast is 35,000 units, what is the
margin of safety in units ?
10. what is the operating leverage? It is high or
low?
Transcribed Image Text:10:27 ll LTE ejercicio de practica cap 3 2020 You have been provided with the following information regarding the XYZ company Selling Price $40 Variable manufacturing cost Fixed manufacturing cost Variable selling & ladministrative costs $22 $150,000 per 1month $6 Fixed selling & administrative costs $120,000 per Imonth 1. What is the expected operating profit for the upcoming year for 30,000 units forecasted? 2. What is the break-even point in dollars? 3. What is the number in units in which profits are equal to zero? 4. what is the contribution margin per unit? 5. what is the contribution margin in dollars? 6. How much in sales dollars is required to generate an operating profit of $30,000? 7. what is the contribution margin ratio? 8. How much in units is required to generate an of $24,000 after tax ( tax rate 20%) operating profit 9. if the forecast is 35,000 units, what is the margin of safety in units ? 10. what is the operating leverage? It is high or low?
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