Elk Manufacturing has budgeted the following amounts for its next fiscal year:Total fixed expensesSelling price per unitVariable expenses per unit$440,000$100$20To maintain the original breakeven sales in units if fixed expenses were to increase by 10%, the selling price per unit would have to beO A. increased by 8%Bincreased by 68%C. decreased by 68%D. decreased by 8%

Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with…

Answered: Elk Manufacturing has budgeted the…

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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Pablo Company has budgeted production for next year as follows: Quarter First Second Third Fourth Production in units 49,000 89,000 99,000 79,000 Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 20% of the next quarter's production needs for material A. A total of 39,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:
Mike Ltd. has the following information available for this year: September October Total costs $86,000 $146,000 Budgeted sales (units) 15,000 30,000 The selling price is $12 per unit. a. What is Mike Ltd's margin of safety in units for September? a. If next year, fixed cost rise by 12%, variable costs fall by 4% and the BEP remains the same as the current year, how much must the selling price be? a. Explain why the accountant's view of breakeven is often criticised. b. Discuss how operational gearing affects a company's profits and give an example of how it can be increased.
Mallory Company expects to sell 130 units in the first quarter, and 70 units in the second quarter. Assuming the company prefers to maintain finished goods inventory equal to 40% of the next quarter's sales, prepare a production budget for the first quarter only. Hint: This quarter's projected sales were used to determine last quarter's required ending inventory. Mallory Company Production Budget First Quarter Budgeted Sales in units Add: desired ending finished goods inventory Total finished goods inventory needed Deduct: beginning finished goods inventory Units to be produced 1st Qtr.
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Blitzle Inc has prepared the following budget data: Sales Volume 15,000 Unit Selling Price ₱750 Unit Variable Expenses ₱550 Fixed Manufacturing Expenses ₱1,600,000 Fixed Selling & Administrative Expenses ₱1,400,000 An advertising agency claims that an aggressive advertising campaign would enable the company to increase its unit sales by 25%. The maximum amount that the company can pay for advertising and obtain a net operating income of ₱350,000 would be ₱___________.
Ghala Company estimates its sales at 200,000 units in the first quarter and that sales will increase by 20,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for OMR 35. Production in units for the third quarter should be budgeted at? Select one: a. None of the answers are correct O b. 305,000. O c.230,000. O d. 240,000. O e. 245,000.
Weller Company's budgeted unit sales for next year are provided below: Budgeted unit sales 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 15,000 *16,000 14,000. 13,000 The company's variable selling and administrative expense per unit is $2.50. Fixed selling and administrative expenses include advertising expenses of $8,000 per quarter, executive salaries of $35,000 per quarter, and depreciation of $20,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $8,000 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for next year. Note: Round "Per Unit" answers to 2 decimal places
If answer all subparts.if answered within 30mins, it would be great
Solve requriement a and b
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Q2: The following monthly budgeted data are available for a wholesale company: Product Product Product A B с $800,000 $400,000 $200,000 640,000 240,000 140,000 $160,000 $160,000 $60,000 Sales Variable expenses Contribution margin The budgeted total fixed expense is $ 150,000. Required: a) Calculate the break-even sales for the month? b) Calculate the margin of safety in sales dollars? c) What is the sales Mix?
Zeus Corporation has budgeted sales of 20 000 units, targeted ending finished goods inventory of 4 000 units, and beginning finished goods inventory of 5 000 units. How many units should be produced next year? A.20 000 units B. 19 000 units C. 24 000 units D. 29 000 units

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