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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For the coming year, Cleves Company anticipates a unit selling price of $142, a unit variable cost of $71, and fixed costs of $603,500. Required: 1. Compute the anticipated break-even sales (units).fill in the blank 1 units 2. Compute the sales (units) required to realize a target profit of $298,200.fill in the blank 2 units 3. Construct a cost-volume-profit chart, assuming maximum sales of 17,000 units within the relevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even. $1,689,800 $1,505,200 $1,207,000 $908,800 $724,200 4. Determine the probable income (loss) from operations if sales total 13,600 units. If required, use the minus sign to indicate a loss.$fill in the blank 8
Q.26.
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 $36,000 What is total contribution margin if sales volume increases by 20%?
A company has following details for this yearDetails Total sales($) Total cost($) Details Total sales($) Total cost($)Year ended 31/12/2018 35,78,998 25,89,709Year ended 31/12/2019 48,90,742 31,67,984 Calculate P/V ratio, Fixed cost, break even sales, Margin of safety 2018/2019, Variable cost 2018/2019and percent of fixed cost 2018/2019
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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