Greenwood Enterprises has a contribution margin ratio of 30%. The company is considering a proposal that will increase sales by $200,000. What increase in profit can be expected if total fixed costs increase by $40,000?
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- Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
- Rolles Company has a contribution margin ratio of 27%. The company is considering a proposal that will increase sales by $130,000. What increase in profit can be expected assuming total fixed costs increase by $25,000?If the contribution margin ratio solve this questionHow much sales are required to earn the target income?
- Brumlow Company has a contribution margin ratio of 25%. The company is considering a proposal that will increase sales by $100,000. What increase in profit can be expected assuming total fixed costs increase by $20,000? A. $20,000 B. $15,000 C. $25,000 D. $5,000Rolles Company has a contribution margin ratio of 27%. The company is considering a proposal that will increase sales by $130,000. What increase in profit can be expected assuming total fixed costs increase by $25,000? A. $20,000 B. $10,100 C. $25,000 D. $5,000.Suppose ABC Corp’s break-even point is revenues of $1,100,000. Fixed costs are $660,000. Calculate the contribution margin percentage. Calculate the selling price if variable costs are $16 per unit. Suppose 75 000 units are sold, calculate the profit earned. Willo the company beprofitable if able to sell 30,000 units? Explain. What should the company do to increase its profit above break-even point.
- Hello, I have the following question. D&R Corp. has annual revenues of $284,000, an average contribution margin of 35%, and fixed expenses of $100,500. A. Management is considering adding a new product to the company's product line. The new item will have $8.6 of variable costs per unit. Calculate the selling price that will be required if this product is not to affect the average contribution margin ratio. (I got $13.23 per unit). B. If the new product adds an additional $31,300 to D&R's fixed expenses, how many units of the new product must be sold at the price calculated in part A to break-even on the new product? (Do not round immediate calculations). C. If 28,800 units of the new product could be sold at a price of $13.8 per unit, and the company's other business did not change, calculate D&R's total operating income and average contribution margin ratio. (Round your intermediate calculations to 2 decimal places. Round average contribution margin ratio to 2…What amount of net income?Sedgwick Inc. is considering Plan 1 which is estimated to have sales of $40,000 and costs of $15,500. The company currently has sales of $37,000 and costs of $14,000.Compare plans using incremental analysis. If Plan 1 is selected, there would be incremental decreaseincrease in profit by $ .
