(iii) Product 'X' generates a contribution to sales ratio of 40%. Fixed costs directly attrib-utable to ‘X' amounts to ₹ 60,000 per month. The sales required to achieve a monthlyprofit of ₹ 12,000 will be(A)1,87,500(B) ₹ 2,00,000(C) ₹ 1,65,000(D) ▼₹ 1,80,00042

The objective of the question is to calculate the sales required to achieve a monthly profit of INR…

Answered: (iii) Product 'X' generates a…

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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Consider the following information from the income statement of Leighton Company: Contribution margin ratio 40% Fixed expenses $140,000 Selling price $100 Target profit $120,000 Unit contribution margin $40 What are the sales dollars required to attain a target profit of $120,000? multiple choice A. $60,000 B. $400,000 C. $10,000 D. $300,000
Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin is $320,000 while the total fixed costs $80,000. If sales are expected to increase by 40% in the next period, how much would the new profit be ($)? O a. 336,000 O b. 272,000 O c. 304,000 O d. None of the given answers O e. 368,000
e. $106,000 Assume that sales are predicted to be $15,000, the expected contribution margin is $6,000, and a net loss of $1,000 is anticipated. The break-even point in sales ($) is: Select one: O a. 8,333 O b. 11,667 Oc. 12,500 O d. 16,000 O e. 17,500 Next page
If fixed costs are $729,000 and variable costs are 60% of sales, what is the break-even point in sales dollars? Oa. $1,822,500 Ob. $2,551,500 Oc. $437,400 Od. $1,166,400
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For the current year ending October 31, Papadakis Company expects fixed costs of $530,200, a unit variable cost of $46, and a unit selling price of $68. a. Compute the anticipated break-even sales (units). units b. Compute the sales (units) required to realize a target profit of $121,000. units
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Raven Company has a target income of $71,900, The contribution margin ratio is 25%. What amount of dollar sales must be achleved to reach tve goal f d cond e Multiple Cholce $446,40O. $28,760. $39,700. $515,300. $39,800.

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(iii) Product 'X' generates a contribution to sales ratio of 40%. Fixed costs directly attrib- utable to ‘X' amounts to ₹ 60,000 per month. The sales required to achieve a monthly profit of ₹ 12,000 will be (A) 1,87,500 (B) ₹ 2,00,000 (C) ₹ 1,65,000 (D) ▼₹ 1,80,000 42