Nature’s Own produces three types of wood flooring: Oak, Hickory, and Cherry. The company's tax rate is 40 percent. The projected costs for the year are detailed below:### Variable Costs (per square yard basis)| Cost Component | Oak | Hickory | Cherry ||------------------------|-------|---------|--------|| Direct material | $10.40| $6.50 | $17.60 || Direct labor | 3.60 | 0.80 | 12.80 || Production overhead | 2.00 | 0.30 | 3.50 || Selling expense | 1.00 | 0.50 | 4.00 || Administrative expense | 0.40 | 0.20 | 0.60 |### Fixed Costs- Fixed overhead: $304,000- Fixed selling expense: $96,000- Fixed administrative expense: $80,000### Selling Prices and Sales Mix- Expected selling prices per square yard: - Oak: $32.80 - Hickory: $16.00 - Cherry: $50.00- Expected sales mix (in square yards): - Oak: 3,600 - Hickory: 28,800 - Cherry: 2,400### Tasksa. Calculate the break-even point for the year. - **Note:** Round to the next highest whole unit. - Calculation: ___ "bags"b. Determine how many square yards of each product are needed to sell at the break-even point. - **Note:** Round contribution margin (CM%) to the nearest tenth of a percent. | Product | Square Yards Needed | |---------|---------------------| | Oak | | | Hickory | | | Cherry | | c. If the company wants to earn pre-tax profit of $320,000, how many square yards of each type of flooring would it need to sell? How much total revenue would be required?Note: Round your answer to the next highest whole unit.| Units | Revenue ||-------------|---------|| Oak: | 0 square yards | $ 0 || Hickory: | 0 square yards | $ 0 || Cherry: | 0 square yards | $ 0 || Total | | $ 0 |d. If the company wants to earn an after-tax profit of $272,000, determine the revenue needed using the contribution margin percentage approach.Note: Round CM% to the nearest tenth of a percent and your final answer to the nearest whole dollar.$ 0e. If the company achieves the revenue determined in (d), what is the (1) breakeven point in dollars, and the margin of safety (2) in dollars and (3) as a percentage?- **Note**: In your breakeven point in dollars calculation, round CM% to the nearest tenth of a percent; round your final answer to the nearest whole dollar.- **Note**: Round margin of safety in dollars to the nearest whole dollar.- **Note**: Round the margin of safety percentage to the nearest tenth of a percent (for example, round 5.6666% to 5.7%).Breakeven in dollars: $ 2,752,294Margin of safety in dollars: $ 0Margin of safety percentage: 0%

Break even point is the point at which there is no profit nor loss. In-order to calculate the break…

Answered: Fixed selling expense Fixed…

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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5. Genesis Company is a wholesaler. It purchases 60.000 units of Product X per month for sale to retailers. The cost of placing an order is P100. The cost of holding one unit of inventory for one year is P4. Note: Kindly input your answer with comma. Example: 10,000 Required: Previously, the company had been purchasing 5,000 units of product X per order: a. What is the ordering cost per year under the previous policy? b. The annual carrying cost? c. How much money does the company save over the policy of purchasing 5,000 units per order using the EOQ policy?
Break-Even Sales and Sales to Realize a Target Profit For the current year ending October 31, Papadakis Company expects fixed costs of $400,000, a unit variable cost of $52, and a unit selling price $77. a. Compute the anticipated break-even sales (units). units b. Compute the sales (units) required to realize a target profit of $92,500. units
Determinant Company is a price−taker and uses a target−pricingapproach. Refer to the following information: Production volume 602,000 units per year Market price $34 per unit Desired operating income 17% of total assets Total assets $13,800,000 What is the target full product cost in total for the year? Assume all units produced are sold. Question content area bottom Part 1 A. $13,800,000 B. $18,122,000 C. $2,346,000 D.$ 102, 340
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
Breakeven analysis and target profit, taxes, what - if analysis Pome Company produces a single product: the Core. The following table provides the Core's details: Per unlt Sellingprice 10% of selling price For the upcoming 7 Labor cost. 6 Variable overhead cost. . . . . 2 Sales commissions.. .$30 Materials cost year, Pome Company expects to sell 500,000 units of the Core, have total fixed costs of $4,500,000, and face a tax rate of 30% of income. Required (a) At the expected level of unit sales, what is the after - tax income? (b)What is the breakeven unit sales of the Core? (c) The marketing manager believes that if the Core's price is cut by $2 unit, sales will increase by 10% . Is this change desirable from a financial perspective? (d)Ignore part (c) when answering this question. The production manager believes that if Pome Company rents a new machine, total manufacturing variable costs ( materials, labor, and overhead) per unit will each drop by 10% . What is the annual rent for…
Multiproduct breakeven analysis and target profit, taxes Pursuit Company produces two products: Bric and Brac. The following table summarizes the products' details and planned unit sales for the upcoming period: Bric BrAc Sellingpriceperunt...........$S25$30 Variablecostperunit ... $14$17 Planned unit sales volume . . . . . . 800, 000 400,000 Pursuit Company has total fixed costs of $10 million and faces a tax rate of 30%. Required (a)What is Pursuit Company's expected profit at the planned level of sales? (b)Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to break even? (c) Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to earn an after-tax income of $910, 000 ?
Strong Key Pte. Ltd, manufactures a key for houses with the selling price $7/per unit. Each key has variable cost per unit $4.- Fixed Cost $60.000/per year. Interest expense for obligation is $15.000,- per year and divided for preferred stock every year is $7.500. Annual sales for this year are 40.000 units. Tax is 30%. a. Calculate and make a graph BEP Strong Key Pte.Ltd. b. Calculate EBIT and Earning Available for Common Stockholders. c. Calculate DOL, DFL, and DTL. d. If Strong Key can add sales in units 20.000 units and become 60.000 units, what is the new EBIT?
Accounting Question
Break-Even Sales and Sales to Realize a Target Profit For the current year ending October 31, Papadakis Company expects fixed costs of $636,800, a unit variable cost of $66, and a unit selling price of $98. a. Compute the anticipated break-even sales (units). units b. Compute the sales (units) required to realize a target profit of $147,200. units
Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit Schylar Pharmaceuticals, Inc., plans to sell 145,000 units of antibiotic at an average price of $19 each in the coming year. Total variable costs equal $826,500. Total fixed costs equal $7,900,000. Required: 1. What is the contribution margin per unit? Round your answer to the nearest cent.$______ What is the contribution margin ratio? Round your answer to two decimal places. (Express as a decimal-based answer rather than a whole percent amount.) ________ 2. Calculate the sales revenue needed to break even. Round your answer to the nearest dollar.$_______ 3. Calculate the sales revenue needed to achieve a target profit of $230,000. Round your answer to the nearest dollar. $______ 4. What if the average price per unit increased to $20.50? Recalculate the following: a. Contribution margin per unit. Round your answer to the nearest cent. $______ b. Contribution margin ratio. Enter your answer as a…

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