12. General Electric Company which manufactures electric motor has a capacity ofproducing 150 motors a month. The variable costs are P4,000.00 per month, theaverage selling price of the motor is P750.00 per motor. Fixed costs of the companyamount to P78,000.00 per month which includes all taxes. The company has 12,000shares of stock at P150.00 par value whose annual dividends is 15%. Determine theunhealthy point.

Average Selling Price The average selling price is the price of a product or service across many…

General Electric Company which manufactures eled ducing 150 motors a month. The variable costs are age selling price of the motor is P750.00 per motor ount to P78,000.00 per month which includes all tax

General Electric Company which manufactures eled ducing 150 motors a month. The variable costs are age selling price of the motor is P750.00 per motor ount to P78,000.00 per month which includes all tax

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Kumolo Co. is selling 1,200 units of rice cooker per year. The selling price per unit is P800 with 60% variable cost. At the currentyearly sale, the company is experiencing a loss of P12,800 at a fixed cost of P396,800. 1. How much is the amount of contribution margin for 1,200 units?2. How much is the contribution margin per unit?3. How much is the new selling price per unit to increase sales by 5%?4. How many units that sales will be increased?5. What is the new Variable Cost Ratio after reduction of Variable Cost by 5%?6. What is the Variable Cost per unit after the reduction of 5%?7. How much is the amount of Sales under the business strategy?8. How much is the amount of Contribution Margin under the business strategy?9. How much is the adjusted Total Fixed Cost under the business strategy?10, How much is the Operating Income or Loss under the business strategy?
The following information is for Nichols Company: Selling price $120 per unit Variable costs $50 per unit Total fixed costs $315,000 If the tax rate is 30% how many units need to be sold to achieve a net income of $37800? ( the 37800 is desired after tax amount)
The fixed cost at Harley motors are $1M annually. The main product has a revenue of $9.90 per unit and $4.50 variable cost What is the annual profit (or loss) if 150,000 units are sold?
Alexander Corporation sells its only product for $30 per unit. Its variable costs per unit are 40% of its selling price. Its total fixed costs for the year are $450,000. The company has an average income tax rate of 40 %. How many units must the company sell in order to earn an after tax profit of $360,000 ? Question 12 options: 45,000. 58,334. 1, 750, 020. 75,000.
CVP; taxesHamlet House makes portable garden sheds that sell for $1,800 each. The tax rate for the company is 35 percent. Costs are as follows: Per Unit Total Direct material $800 Direct labor 90 Variable production overhead 60 Variable selling and administrative cost 50 Fixed production overhead $200,000 Fixed selling and administrative 60,000 a. If Hamlet House wants to earn an after-tax profit of $182,000, how many garden sheds must be sold? b. How many garden sheds must be sold to yield an after-tax profit of 8 percent of revenue?Note: Do not round until your final answer.Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units). garden shedsc. How much revenue is generated from selling units calculated in part (b)? $Answer
Lucid Images Ltd manufactures premium high definition televisions. The firm’s fixed costs are$4,000,000 per year. The variable cost of each TV is $2,000, and the TVs are sold for $3,000 each. Thecompany sold 5,000 TVs during the previous year. (In the following requirements, ignore income taxes)Required:Treat each of the requirements as independent situations:a) Calculate the break-even point in units.b) What will the new break-even point be if fixed costs increase by 10 per cent? c) What was the company’s net profit for the previous year? (4 marks)d) The sales manager believes that a reduction in the sales price to $2,500 will result in orders for 1,200 more TVs each year. What will the break-even point be if the price is changed?
A manufacturer of ovens sells them for $1,370.00 each. The variable costs are $1,020.00 per unit. The manufacturer's factory has annual fixed costs of $2,460,000.00. Given the expected sales volume of 3,700 units for this year, what will be this year's net income? Round to two decimal places
A company sells two products, Product AA and Product BB. Three units of Product AA are sold for every 2 units of Product BB. Fixed cost is P234,000 per year Product AA is sold for P20 per unit and the variable costs identified with the production and sale of each unit of thee product amounts to P14. Product BB is sold for P24 per unit and the variable costs identified with the production and sale of the product amounts to P20 The break even points in unit for Product AA is
(c) Jack's Auto manufactures clectric compact cars at $15,000 per unit. The company sells the cars at a price of $45,000 per unit. The fixed cost per month for the company is S120,000. Find the breakeven quantity and revenue.
The Tick Tock Clock Company sells a particular clock for $75. The variable costs are $15 per clock and the breakeven point is 230 clocks. The company expects to sell 280 clocks this year. If the company actually sells 355 clocks, what effect would the sale of additional 75 clocks have on operating income? Explain your answer The sale of an additional 75 dlocks would aller an. operating income by the amount of The total effect would amount to 4
Elrod Inc. sells a product for $75 per unit. The variable cost is $45 per unit, while fixedcosts are $48,000. Determine (a) the break-even point in sales units and (b) the breakeven point if the selling price were increased to $95 per unit.
For the most recent quarter, Baffle company had an after-tax profit of $62,720 from sales of 225,000 units. The company’s variable costs are 60% of the selling price and fixed costs are $121,900. If the company’s tax rate is 30%, what was the selling price per unit? (Round your answer to the nearest penny): a. $0.82b. $1.57c. $2.35d. $2.05e. $1.17f. $1.37g. $1.77h. None of the above.