sa Exercise 5-14 (Algo) Break-Even and Target Profit Analysis [LO5-1, LO5-4, LO5-6, LO5-7]Lindon Company is the exclusive distributor for an automotive product selling for $56.00 per unit with a CM ratio of 30%. Thecompany's fixed expenses are $411,600 per year and it plans to sell 29,300 units this year.Required:1. What are the variable expenses per unit?Note: Round your "per unit" answer to 2 decimal places.2. What is the break-even point in unit sales and in dollar sales?3. What amount of unit sales and dollar sales is required to attain a target profit of $243,600 per year?4. Assume by using a more efficient shipper, the company can reduce its variable expenses by $5.60 per unit. What is the company'snew break-even point in unit sales and dollar sales? What dollar sales are required to attain a target profit of $243,600?1. Variable expense per unit2. Break-even point in units2. Break-even point in dollar sales3. Unit sales needed to attain target profit3. Dollar sales needed to attain target profit4. New break-even point in unit sales4. New break-even point in dollar sales4. Dollar sales needed to attain target profit$39.20

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is the exclusive distributor for an automotive product selling for $56.00 per unit with a CM ratio of 30%. The expenses are $411,600 per year and it plans to sell 29,300 units this year. wariable expenses per unit? your "per unit" answer to 2 decimal places. reak-even point in unit sales and in dollar sales? of unit sales and dollar sales is required to attain a target profit of $243,600 per year? chinner the company can reduce its variable expenses by $5.60 per unit. What is the company

is the exclusive distributor for an automotive product selling for $56.00 per unit with a CM ratio of 30%. The expenses are $411,600 per year and it plans to sell 29,300 units this year. wariable expenses per unit? your "per unit" answer to 2 decimal places. reak-even point in unit sales and in dollar sales? of unit sales and dollar sales is required to attain a target profit of $243,600 per year? chinner the company can reduce its variable expenses by $5.60 per unit. What is the company

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 56P: Contribution Margin Ratio, Break-Even Sales, Operating Leverage Elgart Company produces plastic...

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Question 3: Oman Company's financial information is given in the table below. Year Sales (OMR) Fixed Costs 445000 Variable Costs : 2020 105000 245000 2021 500000 150000 280000 You are required to calculate the following values for each year. The years are independent of each other. a) P/V ratio, b) В.Е.P. c) Sales required to earn a profit of OMR 45000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 300000.
Chapter: Cost Volume Profit (CVP) Analysis Q) Chaudhary Group Ltd manufactures premium high definition televisions. The firm’s fixed costs are $4,000,000 per year. The variable cost of each TV is $2,000, and the TVs are sold for $3,000 each. The company sold 5,000 TVs during the previous year. (In the following requirements, ignore income taxes) Required: Treat each of the requirements as independent situations:a) Calculate the break-even point in units. b) What will the new break-even point be if fixed costs increase by 10 per cent? c) What was the company’s net profit for the previous year? d) The sales manager believes that a reduction in the sales price to $2,500 will result in orders for 1,200 more TVs each year. What will the break-even point be if the price is changed?
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PROBLEM 2. Outlast Company's projected profit for the coming year follows: Per Unit Total P200,000 (120,000) 80,000 (64,000) P 16,000 Sales P20 Less: Variable costs (12) Contribution margin Less Fixed expenses P 8 Income Requirements: 1. Compute the breakeven point in units. 2. How many units must be sold to earn a profit of P30,000? 3. Compute the additional profit that Outlast would eari sales were P25,000 more than expected.
PROBLEM 3. The income statement of Sandra Company follows: Sales Less Variable expenses Contribution margin Less Fixed costs P500,000 (275.000) 225,000 (180,000) P 45,000 Operating income Sandra produces and sells a single product. The above income statement is based on sales of 100,000 units. Requirements: 1. Compute the breakeven point in units and in pesos. 2. Suppose that the selling price increases by 10 percent. Will the breakeven increase or decrease? 3. Suppose that the variable cost per unit increases by P0.35. What will happen to breakeven point? Can you predict whether the breakeven increases or decreases if both the selling price and the unit variable cost increase? Recompute the breakeven point by incorporating both the changes in requirement 2 and 3. 5. Assume that total fixed costs increase by P50,000. Will the breakeven point change? 4.
Need help with calculating #2 break even point in units and sales
Question 3:salalah Company's financial information is given in the table below. Year 2020 Sales (OMR) Fixed Costs 445000 Variable Costs: 105000 245000 2021 500000 150000 280000 You are required to calculate the following values for each year. The years are independent of each other. a) P/V ratio, b) В.Е.Р. c) Sales required to earn a profit of OMR 45000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 300000.
The following are the unadjusted ledger balances of La Vie Limited for the year ended 31 December 2023: Ordinary Share Capital Sales Trade payables Returns Outwards Purchases Returns Inwards Carriage outwards Carriage inwards Rental expense Insurance expense Sales and Marketing Office salaries expense Cash at Bank Opening Inventory at 1st January 2023 Trade Receivables Plant and Machinery at cost Accumulated Depreciation (1st January 2023: Plant and Machinery) Motor Vehicles at cost Rental expense owing as at 31 December 2023 Depreciation for the year - Plant and Equipment Depreciation for the year - Motor Vehicles Income Statements for the year ended 31 December 2023 La Vie Limited Mikie Limited Sales Cost of goods sold Additional information needed for year-end adjustments, are as follows: Insurance for January 2024 $800 Closing Inventory, at 31 December 2023 $3,500 Irrecoverable debts to be written off $350 $11,000 10% using straight line method 18% on cost Gross profit Less:…
PROBLEM 2. Outlast Company's projected profit for the coming year follows: Per Unit Total P200,000 (120,000) 80,000 (64,000) P 16,000 Sales Less: Variable costs P20 (12) P 8 Contribution margin Less Fixed expenses Income 4. Suppose Outlast would like to earn operating income equ to 20 percent of sales revenue. How many units must be sold for this goal to be realized? 5. For the projected level of sales, compute the margin of safety.
Question 3: Sohar Company's financial information is given in the table below. Sales (OMR) Fixed Costs 405000 Year Variable Costs 2019 90000 225000 2020 450000 120000 240000 Calculate: a) PV ratio, b) B.E.P in units and Sales c) Sales required to earn a profit of OMR 40000.Each year is separate, you should calculate the required values for both years. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000.
Problem 5 - 19 (Algo) Break - Even Analysis; Pricing [LO5 - 1, LO5 - 4, LO5-5] Last year Anthony Fauci Ltd. introduced a new product and sold 25, 300 units of it at a price of $94 per unit. The product's variable expenses are $64 per unit and its fixed expenses are $837,300 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break - even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2 (e.g., $68, $66, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break - even point in unit sales and in dollar sales using the selling price that you determined in requirement 3?
Question 2: Muscat Company has the following information. OMR Fixed Cost 8750 Break even Sales 16000 a) PV Ratio b) Profit when sales are 20000 c) New BE point if selling price is reduced by %25 Question 3: Sohar Company's financial information is given in the table below. Year Sales (OMR) Fixed Costs Variable Costs 2019 405000 90000 225000 2020 450000 120000 240000 Calculate: a) P/V ratio, b) В.Е.Р. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000.