Francorp has a break-even point of $175,000. Ifactual sales are $225,000 then what is the margin of safety in terms of units? Note that Francorp has a sales price of $400 per unit. O 170 units O 200 units O 150 units 125 units

Francorp has a break-even point of $175,000. Ifactual sales are $225,000 then what is the margin of safety in terms of units? Note that Francorp has a sales price of $400 per unit. O 170 units O 200 units O 150 units 125 units

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: Sugar Corporation manufactures specialized sugar cubes that are used in tea. The company has a sales…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: The Excellence Company sells two products: Product A and Product B with the following sales mix for…

A: The break-even point in units refers to the level of sales at which a company neither earns a profit…

Q: Bramble Corp. sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70%…

A: Break even point :— It is the point of production where total cost is equal to total revenue. At…

Q: How do you compute the monthly margn of safety in dollars if the shop has a monthly target profit…

A: Given that: Target profit = $54000 Variable costs = 20% of sales Fixed costs = $18000

Q: Wayne Enterprises currently sells widgets at a price of $8.00 per unit. Its variable cost is $3.00…

A: Break-even point The point at which a business will not have any losses or profits is known as the…

Q: Witrox Bhd sells two models of smartphone, the Oppo and the Xiaomi. Oppo Xiaomi RM RM Sales price…

A: The contribution margin is calculated as the difference between sales and variable costs. The…

Q: Friar Corporation sells two products. Product A sells for $100 per unit and has unit variable costs…

A: The contribution margin is the difference between the sales and the variable expense. It in other…

Q: wwwwww Benicio has already calculated that the gross profit for the new product could be nearly…

A: Part 2: Approach to solving the question:To solve the problem of calculating gross profit for…

Q: Sheridan Company is using the target cost approach on a new product. Information gathered so far is…

A: The target cost is the maximum amount that a company will incur on a product, project, or service…

Q: mpresas Alcapurrias reaches its break-even point when it sells 20,000 units, if the sale price is $…

A: Formula: Break even point = Fixed cost / Contribution margin

Q: Sunland Company manufactures and sells solar chargers for $50 each. Variable costs are $40 per unit,…

A: Break Even Sales is point at which no profit no loss is occurred. Formula: BEP (in amount) = Fixed…

Q: Piit Company currently sells 1,0 ariable costs are P1.50. A discou COL anits of product M. The…

A: Variable Cost - The total cost of production of a good comprises of the total fixed cost of…

Q: COVID 19 Corp. sells two products. Product A sells for $200 per unit, and has unit variable costs of…

A: Selling price per unit: It is the price at which a unit of product is sold in the market. Variable…

Q: Vaughn Manufacturing wants to produce and sell a new lightweight radio. Desired profit per unit is…

A: The question is based on the concept of Cost Accounting.Selling price is the combination of the…

Q: Pepper Inc. produces lacrosse sticks. The selling price per stick is $42. Their variable cost per…

A: given that, Selling price per unit = $42 Variable cost per unit = $28 Fixed cost per unit = $12…

Q: Success Electronics LLC is planning to introduce a low cost smart phone with attractive features.…

A: Target cost = RO 30 / 120% Target cost = RO 25

Q: Techiefy Co. wants to launch a new product. it is observed that the fixed cost of the new product is…

A: Cost function = 35,000 + 500D Revenue function = 5000D-100 D2 Profit function at breakeven =…

Q: 50) Selling price is $80/unit, VC are $68/unit, Fixed costs are $600,000. You are currently selling…

A: Margin of safety in units = current sales units - break even point Break even point = Total…

Q: Sunland Company sells MP3 players for $ 50 each. Variable costs are $ 40 per unit, and fixed costs…

A: Break-even sales are used to calculate the units to be sold to recover its cost of sales.It can be…

Q: A market research specialist told Peachtree Company that it could expect to sell 720,000 units of…

A: Formula to calculate target cost per unit:Target cost per unit = Sales price per unit - Profit…

Q: 48) Selling price is $50/unit, VC are $36/unit, Fixed costs are $420,000, how many units do you need…

A: Break-even: It can be defined as that level of production at which the firm’s total costs fall…

Q: If total cost and Expenses is P300,000 at breakeven point how much is the total sales? 2. The unit…

A: Break Even Point :— It is the point at which total cost is equal total revenue. At this point, net…

Q: Friar Corp. sells two products. Product A sells for $60 per unit, and has unit variable costs of…

A: 1.Contribution per unit = Selling price per unit - Variable cost per unit.2.Profit = Total…

Q: Assume in each case that the selling expenses are $9 per unit and that the normal profit is $6 per…

A: Upper Limit = Selling Price - Selling expenses Lower Limit = Upper Limit - Normal profit Market…

Q: Campbell Enterprises produces a product with fixed costs of $53,400 and variable cost of $2.50 per…

A: Target sales price is the one which is charged by the entity, for selling goods, from its customers.…

Q: Bonita Industries sells MP3 players for $80 each. Variable costs are $50 per unit, and fixed costs…

Q: 10) An entrepreneur conducted research for a new product indicates that it can be sold for $75 per…

A: The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The…

Q: Suppose that the demand for a product is given by Q=25-0.25P. If the product's price is $128 per…

A: Q = 25 - 0.25PWhereP = Price of the product = $128Q = Quantity demanded

Q: of the bestselling items your f per unit is $11.59 and the carrying units each year. The fixed cost…

A: To find the order quantity that strikes a balance between keeping enough inventory to meet demand…

Q: 51) Selling price is $90/unit, VC are $63/unit, fixed costs are $540,000. You are currently selling…

A: The margin of safety is calculated as excess of current sales over break even sales.

Q: Zulu sells its waterproof phone case for $114 per unit. Fixed costs total $222,000, and variable…

A: In case of target income, we will calculate units sold by putting x as units sold and then solving…

Q: 2. lle Patrice has just graduated university and is thinking about opening "Surf Shop" to sell…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have…

A: Break-even point :— It is the point of production where total cost is equal to total revenue. At…

Q: Harris Company produces a product whose cost is $25. Assuming the company uses a cost-plus pricing…

A: Selling price :— It is calculated by adding the total cost and required profit margin. Selling…

Q: Fill in the missing amounts in each of the eight case situations below. Each case is independent of…

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

Question

Francorp has a break-even point of $175,000. Ifactual sales are $225,000 then what is the margin of
safety in terms of units? Note that Francorp has a sales price of $400 per unit.
170 units
O 200 units
O 150 units
O 125 units

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

A producer of pens has received a forecast of 25,000. Fixed Cost = $30,000 and Total Variable Cost = $50,000 at this level. At what price must the pens be sold in order for the company to break even at 2T units? a. P17 b. P15 c. P21 d. P13
Marsh microns produces an product and provides the following information for the year 2019: Margin of Safety =P3,75,000 Total Cost=P3,87,500 Margin of Safery = 15,000 units Break Even Sales=5,000 units Find: Selling price per unit and profit.
Swifty Corporation is planning to sell 810000 units for $1.50 per unit. The contribution margin ratio is 20% . If Swifty will break even at this level of sales, what are the fixed costs? O $810000 $567000. O $930000. $243000.
Please answer do not image format
Choose the correct letter of answer Bautista Company produces and sells a particular home appliance. The variable cost (VC) per unit is P50. The unit selling price (SP) is P120 while fixed cost (FC) is P75,000. Determine the amount by which the FC would have to be reduced to allow the firm to BE at a sales volume of 4,000 units, assuming the VC and the SP remain constant. a. 200,000b. 280,000c. 480,000d. 75,000
1. Audrey sells a product for R8, 50. The variable cost are R5. Aubrey's break-even in units are 45000 units. What is the amount of fixed cost? 2. The firm sells 2L juice for each. The variable cost for each juice is R12. What is the contribution margin per unit?
8. Company XYZ is a car navigation system manufacturer. The company sells each unit for $ 400. The variable manufacturing cost per unit is $ 100 while the variable selling and administrative cost per unit is $ 50. The fixed manufacturing cost is $ 4,000 while the fixed selling and administrative cost is $ 6,000. Calculate the number of units needed to achieve an operating profit of $ 8,000. (round to the nearest number) ?
Bronco Truck Parts expects to sell the following number of units at the prices indicated under three different scenarios in the economy. The probability of each outcome is indicated. Outcome A B C Probability 0.20 0.20 0.60 Units 390 680 1,090 Total expected value Price $25 34 39 What is the expected value of the total sales projection?
The Weighted Mean2\ If a manufacturer buys 200 units at OMR 5 per unit from one supplier and 500 units at OMR 3 per unit from another, Find the average cost per unit accurately.
Q1. Murray furniture store sells couches as a retailer. The wholesale cost to them of their most popular model of couch varies depending on how many they purchase for sale. For the first 200 couches the cost is $299 each; for the next 200 couches it drops to $250 each; and for every couch after that it costs $225. Create an excel function using the IF function to show the gross profit under the following scenarios: a. b. It sells at a price of $650 and 350 units are purchased for sale and sold It sells at a price of $625 and 300 units are purchased for sale and sold It sells at a price are $700 and 1,000 units are purchased for sale and sold C.
Clockmaker Ltd. makes a product called wallet. Managers from Clockmaker Ltd. want to achieve a profit of £82, 800. The wallet price equals £82 per unit. Each unit of wallet has a cost of £36 and annual total fixed costs equal £147, 200. Considering this information, which of the following statements is true? O a. To achieve the desired profit, Clockmaker Ltd. needs to sell 5, 000 units of wallet. O b. Clockmaker Ltd. would need to sell more than 3, 200 units of wallet to have positive profits. O c. Contribution per unit equals £46. O d. All the answers are true.
Ignore income taxes for this problem. A firm currently sells 25 units for $12 each. Its variable cost per unit is $9 and fixed costs total $60. The firm determines it can sell 35 units if it decreases the selling price from $12 to $11 per unit. The firm should Select one: a. Decrease the sales price because it will increase profits by $5. b. Not decrease the sales price because it will decrease profits by $10. c. Not decrease the sales price because it will decrease profits by $5. d. Decrease the sales price because it will increase profits by $10.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS