Elkins, a manufacturer of ice makers, realizes a cost of $250 for every unit it pro- duces. Its total fixed costs equal $5 million. If the company manufactures 500,000 units, compute the following: a. unit cost b. markup price if the company desires a 10% return on sales c. ROI price if the company desires a 25% return on an investment of $1 million.

Q: different types of lamps: a floor lamp and a desk lamp. Floor lamps sell for $30 and desk lamps sell…

A: The contribution Margin is calculated as difference between sales and variable cost. The break even…

Q: n was preparing a new product analysis for Brand X. On the basis of consumer research, he had…

A: The companies make the products to increase the sales and profit but they have to share profit with…

Q: A firm has the capacity to produce 931,498 units of a product each year. At present, it is operating…

A: Break-even sales are those level of sales at which the business does not make any profit nor does it…

Q: Nytre Limited sells executive office chairs for a price of $195 each. The contribution margin ratio…

A: The targeted sales are calculated as sum of fixed cost and target profit divided by contribution…

Q: A product sells for $200 per unit and its variable costs per unit are $130. Total fixed costs are…

A: First, we calculate the contribution margin per unitContribution Margin per Unit = Selling Price per…

Q: Tiger Corp expects to sell 15,000 units of product. The average price per unit is $12 and variable…

A: Financial risk is a measure of the uncertainty and potential loss associated with an investment or…

Q: gnite Products is a price - taker. The company produces large spools of electrical wire in a highly…

A: Solution:- Calculation of the Reduction in variable cost to achieve the desired profit as follows:-

Q: Marengo Corporation's total costs at breakeven are $80,000 when it sells 20,000 units. These costs…

A: Fixed cost =  total costs  x 75% = $80000 x 75% = $60,000 Variable cost =  total costs  x 25% =…

Q: A product sells for $50 with variable costs of $36 per unit and annual fixed costs of $1,200,000. If…

A: Contribution Margin :— It is the difference between sales revenue and variable cost.    Number of…

Q: Stuart Company Stuart Company manufactures a single product. Each unit sells for $15. The firm's…

A: Given, Variable costs per unit:   Production $5 SG&A $1 Fixed costs:   Production…

Q: A firm expects to sell 25,400 units of its product at $14 per unit. Income is predicted to be…

A: A constant cost is something that does not change in response to activities. It must be paid on a…

Q: Sundial, Inc., produces two models of sunglasses-AU and NZ. the sunglasses have the following…

A: Contribution means the difference between the selling price and variable cost . Fixed cost when…

Q: Suppose that a company expects the following financial results from a project during its first year…

A: Contribution : In simple words, contribution is the reward for the efforts of the entrepreneur or…

Q: Product X sells for $50 with variable costs of $36 per unit and annual fixed costs of $1,200,000. If…

A: In this question, we need to compute the number of units to be sold if the company wants to earn an…

Q: Berea Company expects to sell 9,000 units. Total fixed costs are $84,000 and the contribution margin…

A: CVP analysis is used to identify the changes in costs and volume affect a company's operating…

Q: Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year.Variable cost…

A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Variable cost is…

A: Break-even sales is the amount of sales where the net income is zero. Contribution margin is given…

Q: The big shoe company are planning production for next year. The selling price is $30 per pair, raw…

A: Marginal cost refers to the additional cost incurred by a company when it produces one additional…

Q: Mix Electronics purchases 2,400,000 units per year of a component with a purchase price of P50. The…

A: EOQ formula: EOQ = [2*d*s/h]^0.5 where d = annual quantity = 2,400,000 s = cost per order = 15 h =…

Q: In the upcoming year, NUBD estimates that it will produce and sell 4,000 units. The variable costs…

A: Margin of safety = Current sales - Breakeven sales

Q: OA. $940,0 OB. $200,0 OC. $250,0 OD. $490,

A: Target full product cost is the total cost required to produce and deliver a product or service…

Q: Clockmaker Ltd. makes a product called wallet. Managers from Clockmaker Ltd. want to achieve a…

A: The contribution Margin is calculated as difference between sales and variable cost. The break even…

Q: A firm has fixed operating costs of $100,000 and variable costs of$4 per unit. If it sells the…

A: The formula to compute break-even quantity:

Q: A firm has the capacity to produce 599,374 units of a product each year. At present, it is operating…

A: Break-even point:- Break-even point is defined as the point on which the cost of production is equal…

Q: A company expects to sell 75,000 widgets at a price of $10.00. The unit variable costs are estimated…

A: Given Sales = 75,000  Per unit Price = $10.00 Variable Cost = $8.00 Fixed Cost = $125,000

Q: Here are the following data for Al-Nisour Company, as follows: The variable unit costs of 3.5…

A: Break even point means a point where firm is neither earning profit nor incurring any loss. Break…

Q: Friedman Co. is considering adding a new product. Based on preliminary market research, the company…

A: Target cost can be calculated by deducting the profit margin from the expected sales revenue.

Q: A company wants to price its product by using target ROR method. If the investment is estimated to…

A: Rate of Return pricing is a method by which a company fixes the price of the product in such a way…

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.