Example Given all the following costs for a consulting firm: C= RM2,024,000, c, = RM62/service hour, p = RM85.56/hour %3D Maximum output = 160,000 hours/year %3D Determine: a) Breakpoint in service hours and in % of capacity b) % reduction in BEP if Cfis 10% down; if c, 10% down; if both 10% dot p is increased by 10%
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- 3. The management of Lambda Corporation has received the following forecast for the next year. Sales revenue $600,000Fixed costs $275,000Variable costs 270,000Total costs 545,000Net income $ 55,000 Capacity is a sales volume of $800,000.a. Computei. the contribution margin ii.the contribution rate. b. Compute the break-even pointi. in dollars; ii. as a percent of capacity. c. Determine the break-even volume in dollars if fixed costs are increased by $40,000, while variable costs are held to 40% of sales.Using the following data, estimate the new Return on Investment if there is a 10% decrease in variable and fixed costs - with average operating assets as the base. Sales $2,000,000 Variable costs 1.100.000 Contribution margin 900.000 Controllable fıxed costs 300.000 IControllable margin $600,000 Average operating assets $5,000,000 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.Provide step by step solution and answer
- Calculate the Operating Leverage for a business given the following data: Sales = $300,000.00 Variable Costs = 75% of Sales Operating Income = $40,000.00 Group of answer choices a. 0 b. 7.500 c. 1.875 d. 1.333Using the following data, estimate the new Return on Investment if there is a 10% decrease in variable and fixed costs- with average operating assets as the base. Sales Contribution margin $3,662,879 37% Controllable fixed costs 333,341 Average operating assets $5,266,981| Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.SHOW SOLUTION ANSWER FOR #4 ONLY
- Suppose that a company expects the fo llowing financial resuJts from a project during its first year ope ration:• Sales revenue: $250.000• Variable costs: $80.000• Fixed costs: $50.000• Total unit produced and so ld: 1,000 units(a) Compute the contribution ma rgin pe rcentage.(b) Compute the brcakcven point in units sold.Golden Goodness (GG) has an investment center that had the following data: Operating Income $28,000 Sales $350,000 Invested assets $175,000 PMB has set a minimum acceptable rate of return at 14%. Using the information, answer the following questions. You must include what type of number it is (%, $, etc.) Part A: What is the residual income? Part B: Show calcualtions on how you got answerUsing the following data, estimate the new Return on Investment if there is a 10% increase in sales - with average operating assets as the base. Sales $2,000,000 Variable costs 1,100,000 Contribution margin 45% 900.000 Controllable fıxed costs 300.000 Controllable margin $600,000 Average operating assets $5,000,000 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.
- B. Consider the following: Total variable costs $200,000 Total fixed costs $150,000 Annual volume of units 500 Average invested capital $400,000 Target Return on investment 20.0% To the nearest tenth, what is the markup percentage required to earn the target return on investments using the cost-plus formula based on total costs?Suppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company is estimated to be MC=q+35 MR=560+22q-q^2 Where q is the quantity produced and the firm’s break-even is 5 units per week You are Required to I. determine the total cost and the total revenue function in terms of q. II. estimate the output at which profit is maximize III. calculate the maximum profitUsing the following data, estimate the new Return on Investment if there is a 13% decrease in the average operating assets - with the new average operating assets as the base. Sales $3,516,519 Contribution margin 39% Controllable fixed costs 300,215 Average operating assets $4,964,961 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.