In the year 2020, kim plastics sold 100,000 units of its product. Selling price per unit was 100. Standard and actual costs per unit based on production of 100,000 units were variable cost=P25, Fixed costs=P50. Find operating income as per direct costing, break even point in value.
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- A company would like to determine various costs and points to aid them in deciding whether to expand or not. If you are given the following information, compute the required amounts and / or figures.Selling price / unit = P100 Variable cost / unit = P70Annual fixed cost = P500,000 Compute 5. Sales in units to earn a profit of 10% of sales.The following information relates to the operations of a company; cost per unit from supplier- GH¢80, variable cost per unit GH¢40 and total fixed cost of GH¢300000. The company determines its selling price by adding a margin of 20%. What is the breakeven quantity?Consider the following cost and pricing data of ABC Corp. on its Product X:Price: P120.00.per unitProfit Contribution: P90.00Proposed additional Cost: P3 per unit (for quality improvement)Current Profits: P2.4 millionSales: 100,000 units. A. Assuming that average variable costs are constant at all output levels, findABC Corp.’s total cost function before the proposed change.B. Calculate the total cost function if the quality improvement is implemented. UNANSWERED SUB-PARTSC. Calculate ABC Corp.’s break-even output before and after the change, assuming it cannot increase its price.D. Calculate the increase in sales that would be necessary with the quality improvement to increase profits to P2.7 million
- 1. XY Company manufactures and sells LCD monitor at P5000 each. Compute the following: (a) total variable cost (b) total fixed cost (c) total cost (TC) function (d) total revenue (TR) function (e) profit function (f) the break-even quantity (g) the break-even sales revenue, when the production officer reported the following: > Sale price: P5000 per monitor > direct materials cost: P1000 per unit > direct labor cost: P550 per unit > other overhead cost P950 per unit Fixed costs related to the production are also reported: > salary of management: P200,000 > rent for the factory: P150,000, > other salaries: P140,000 > depreciation of equipment: P12,000Blossom Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,430 units Sales price $40 per unit Variable costs $20 per unit Fixed costs $21,870 (a)What is the contribution margin ratio? Contribution margin ratio % (b)What is the break-even point in dollars? Break-even point $ (c)What is the margin of safety in dollars and as a ratio? Margin of safety $ Margin of safety ratio % (d)If the company wishes to increase its total dollar contribution margin by 30% in 2020, by how much will it need to increase its sales if selling price per unit, variable price per unit and total fixed costs remain constant? Total increase in sales required: $Sheridan Bucket Co., a manufacturer of rain barrels, had the following data for 2021: Sales quantity Unit selling price Unit variable costs Fixed costs (a) 2,200 barrels $75 per barrel $45 per barrel $18,480 What is the contribution margin ratio? Contribution margin ratio %
- Madlock, Inc. sells a product with a contribution margin of $10 per unit. Fixed costs are $1,800 per month. How many units must Madlock sell to break even? Begin by showing the formula and then entering the amounts to calculate the units Madlock must sell to break even. (Abbreviation used: CM = contribution margin. Complete all input fields. Enter a "0" for items with a zero value.) Target profit ) = Fixed costs ▼ + + HH CM per unit TOD Carmen Required sales in unitsAn industry is going to launch a new product in the market in the year 2018. The data pertaining to the costs and the estimated sales is provided as follows 1. Fixed cost for the year 2018-2019 is 20000$. 2. The variable cost per unit is 12$. 3. The estimated sales are 800000$. 4. If each unit is sold at 30$. Find out 1. Break-even point. 2. The profit at a turn-over of 25000 units. 3. Margin of safety in terms of units and sales. 4. If a profit target is 1200000$, compute the turn over required. 5. Also construct the break-even chart and show the details on it.Marigold Corp. is using the target cost approach on a new product. Information gathered so far is as follows: Expected annual sales Desired profit per unit Target cost What is the unit selling price? O $0.30 O $0.64 O $0.62 O $0.32 500000 units $0.32 $150000
- Fixed cost = 10,000 Material cost per unit = 0.15 Labor cost per unit = 0.10 Revenue per unit = 0.65 Suppose Toys R Us sells all that it produces, profit is calculated by subtracting the fixed cost and total variable cost from total revenue. Give a mathematical model for calculating profit and implement your model from part in Excel. If Toys R Us makes 12,000 units of the new product, what is the resulting profit?Sheridan Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,200 units Sales price $75 per unit Variable costs $45 per unit Fixed costs $18,480 What is the contribution margin ratio? Contribution margin ratio % What is the break-even point in dollars? Break-even point $ What is the margin of safety in dollars and as a ratio? Margin of safety $ Margin of safety ratio % If the company wishes to increase its total dollar contribution margin by 30% in 2020, by how much will it need to increase its sales if selling price per unit, variable price per unit and total fixed costs remain constant? Total increase in sales required: $The smith company management would like to know the total sales units that are required for the company to earn a profit of $ 150000. The following data are available. The unit selling price of $50, variable cost per unit $25. Total fixed cost of $ 500000. Find Profit in order for the Manufacturer to break even. How many units must be sold in order for the Manufacturer to break even?