PR 22-3BBreak-even sales andcost-volume-profitchartobjs. 3, 41✓120,000 unitsFor the coming year, Favre Products Inc. anticipates a unit selling price of $160, a unitvariable cost of $90, and fixed costs of $1,400,000.Instructions1. Compute the anticipated break-even sales (units).2. Compute the sales (units) required to realize income from operations of $525,000.3. Construct a cost-volume-profit chart, assuming maximum sales of 50,000 unitswithin the relevant range.4. Determine the probable income (loss) from operations if sales total 30,000 units.£ $300

CVP Analysis consists of analysing the relationship between the costs, sales volume and contribution…

Answered: Instructions 1. Compute the anticipated…

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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Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following projected income statement: Sales $88,000 Total variable cost 23,760 Contribution margin $64,240 Total fixed cost 43,800 Operating income $20,440 Required: 1. Calculate the contribution margin ratio. Note: Enter as a percent, rounded to the nearest whole number. fill in the blank 1 % 2. Calculate the variable cost ratio. Note: Enter as a percent, rounded to the nearest whole number.fill in the blank 2 % 3. Calculate the break-even sales revenue for Ashton. Note: Round your answer to the nearest dollar. $fill in the blank 3 4. How could Ashton increase projected operating income without increasing the total sales revenue? Decrease the contribution margin ratio
Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $380,000 Variable expenses $228,000 Contribution margin $152,000 Fixed expenses $116,000 Net operating income $36,000 What is total contribution margin if sales volume increases by 20%?
The following income statement applies to Franklin Company for the current year: Income Statement Sales revenue (410 units × $31) Variable cost (410 units × $16) Contribution margin Fixed cost Net income Required a. Use the contribution margin approach to calculate the magnitude of operating leverage. b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that Franklin Company will earn If It experiences a 10 percent increase in revenue. The sales price per unit is not affected. c-1. Verify your answer to Requirement b by constructing an income statement based on a 10 percent increase in sales revenue. The sales price is not affected. c-2. Calculate the percentage change in net income for the two income statements. Req A and B Complete this question by entering your answers in the tabs below. Req C1 a. Operating leverage b. Net income $ $12,710 (6,560) 6,150 (4,100) $2,050 > Answer is complete but not entirely correct. Req C2 a. Use the…
2. On the basis of French's revised information, what does next year look like: a. What is the break-even point? 1,035,688 units Sales at full capacity (units) Sales volume (units) Unit sales price ($) Sales revenue ($) Variable cost per unit ($) Contribution margin per unit ($) Total variable cost ($) Fixed costs ($) Profit ($) Ratios Variable cost to sales Unit Contribution to sales Utilization of capacity (%) Break even point (units) Aggregate 2,000,000 1,750,000 6.948 12,160,000 3.385 3.56 5,925,000 3,690,000 2,545,000 0.49 0.51 87.5 1,035,688.312 A 400,000 $10 4,000,000 7.5 2.5 3,000,000 960,000 40,000 0.75 0.25 20 384,000 Product Lines B 400,000 $9 3,600,000 3.75 5.25 1,500,000 1,560,000 540,000 0.42 0.58 20 297,143 C 950,000 $4.80 4,560,000 1.5 3.3 1,425,000 1,170,000 1965000 0.31 0.69 47.5 354,545
Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The company's monthly fixed expense is $32,250. Required: 1. Calculate the unit sales needed to attain a target profit of $8,000. Note: Do not round intermediate calculations. 2. Calculate the dollar sales needed to attain a target profit of $8,700. Note: Round your intermediate calculations to the nearest whole number.
Skeeter Systems uses the following data in its Cost-Volume-Profit analyses: Sales Variable expenses Contribution margin Fixed expenses Net operating income O $80,000 What is total contribution margin if sales volume increases by 20%? O $158,400 O $200,000 Total $ 400,000 280,000 120,000 100,000 O $144,000 $ 20,000
Lin Corporation has a single product whose selling price is $135 per unit and whose variable expense is $81 per unit. The company’s monthly fixed expense is $23,580. Required: 1. Calculate the unit sales needed to attain a target profit of $4,500. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $9,500. (Round your intermediate calculations to the nearest whole number.)
Cullumber Corp. had total variable costs of $247,500, total fixed costs of $193,500, and total revenues of $450,000.Compute the required sales in dollars to break even. Required sales $enter the required sales in dollars
Kk.1. Subject :- Accounting Assume the following (1) selling price per unit = $30, (2) variable expense per unit = $18, and (3) total fixed expenses = $55,200. Given these three assumptions, the unit sales needed to achieve a target profit of $12,000 is: Multiple Choice 5,600 units. 17,600 units. 84,800 units. 67,200 units.
The controller of Ashton Company prepared the following projected income statement: Sales $97,000 Total variable cost 32,850 Total fixed cost 43,800 Operating income $20,440 Required: Calculate the contribution margin ratio?
A recent income statement of Company A reported the following data: Units sold 8,000Sales revenue ₱7,200,000Variable costs ₱4,000,000Fixed costs ₱1,600,000 If the company desired to earn a target net profit of ₱480,000, it would have to sell:A. 1,200 units. B. 2,800 units. C. 4,000 units. D. 5,200 units.

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