computo-tre cher Todo ario var15 Selling price per unit16 Variable expenses per unit17 Contribution margin per unit1819 CM ratio20 Variable expense ratio2122 2. Compute the break-even sales.23 Break-even in unit sales24 Break-even in dollar sales2526 3. Compute the margin of safety.27 Margin of safety in dollars28 Margin of safety percentage2930 4. Compute the degree of operating leverage.31 Sales32 Variable expenses33 Contribution margin34 Fixed expenses353637 Degree of operating leverageNet operating income$75 per unit45 per unit$30 per unit40%60%7,000 units$525,000$315,0003 JPL, Incorporated has provided its sales and expense data for the most recent period. The Controller has asked you prepare aspreadsheet that shows the related CVP Analysis computations.Given the following information complete a CVP analysis for JPL, Incorporated:Unit salesSelling price per unitVariable expenses per unitFixed expenses11,200 units$ 75 per unit$45 per unit$ 210,000Required:Use the data to answer the following.1. Compute the CM ratio and variable expense ratio.2. Compute the break-even sales.3. Compute the margin of safety.4. Compute the degree of operating leverage.

Variable costs are costs that varies with the change in the level of output. Fixed costs are costs…

Answered: JPL, Incorporated has provided its…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Manji
Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow: Month Machine Hours Electricity Costs January 2,500 $ 18,400 February 2,900 21,000 March 1,900 13,500 April 3,100 23,000 May 3,800 28,250 June 3,300 22,000 July 4,100 24,750 August 3,500 22,750 September 2,000 15,500 October 3,700 26,000 November 4,700 31,000 December 4,200 27,750 Summary Output Regression Statistics Multiple R 0.965 R Square 0.932 Adjusted R2 0.925 Standard Error 1,425.18 Observations 12.00 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 3,726.88 1,682.82 2.21 0.05 (22.69) 7,476.45 Machine Hours 5.77 0.49 11.7 0.00 4.67 6.87 The percent of the total variance that can be explained by the regression is:…
Presented below is data of B Ltd for next year. XYZ Selling price ($) 3.0 2.0 4.0 Unit variable cost ($) 1.0 0.8 1.2 Standard labor hours 2.5 2 3.5 Maximum sales demand (units) 300 500 400 Total labor hours available for production in a month is 1000 hours. Requirements: 1. Compute unit contribution per unit of labor hour and show the product mix to maximize profit. 2. If the labor hours can be increased by 100 hours, how many units of product should the company produce to maximize profit?
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,031 14,997 April 2,698 10,326 May 2,858 12,140 June 3,893 18,050 a.$0.15 b.$0.77 c.$1.55 d.$0.73
Pursuit Company produces two products: Bric and Brac. The following table summarizes the products' details and planned unit sales for the upcoming period: Bric : Sellingpriceperunit.............$25. Variablecostperunit $14. Planned unit sales volume . . . . . . 800,000 Brac: Sellingpriceperunit............. $30 Variablecostperunit $17. Planned unit sales volume. 400,000 Pursuit Company has total fixed costs of $ 10 million and faces a tax rate of 30% . (a)What is Pursuit Company's expected profit at the planned level of sales? (b)Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to break even? (c) Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to earn an after - tax income of $ 910,000?
The Carlsbad Corporation produces and markets two types of electronic calculators: Model 4A and Model 5A. The following data were gathered on activities during the third quarter: Sales in units Sales price per unit Variable production costs per unit Traceable fixed production costs Variable selling expenses per unit Traceable fixed selling expenses Allocated portion of corporate expenses Sales Variable expenses Contribution margin Traceable fixed production costs Traceable fixed expenses Segment margin Common fixed expenses Net operating income (loss) Required: Prepare a segmented income statement for last quarter. The statement should provide sufficient detail to allow the company to evaluate the performance of the manager of each product line. X Answer is complete but not entirely correct. Model 4A 876,000 240,000 X 636,000 $ $ Model 4A 6,000 $ 146 $ 40 $ 210,000 $20 $ 15,000 $ 136,000 $ Total Company 1,926,000 485,000 X 1,441,000 520,000 35,000 886,000 276,000 610,000 $ 210,000…
Simple Accounting - CPV. The unit price for towel is $18.59 and the variable cost is $7.11. If the fixed cost for the retailer is $22,853.71 and the targeted operating income is $40,500.00, how many units should be sold (round to the nearest unit)? O a. 5,519 O b. 8,911 O c. 3,408 O d. 2,465
a) Compute the breakeven sales dollars of cach product assuming the same sales mix remains constant. b) Prepare an analysis showing whether Product Z should be eliminated. The amount of change to net income should be computed. c) Assume the current demand of cach product is same as the sales volume the company has for the year. Below is the machine processing time required for cach product. Product Machine processing time in hours i. How many units should the company produce for each product if there is a constraint of only 24.000 hours of machine processing time in the year. ii. Compute the highest possible net income camed by the company. 3 2 An accountant has prepared the folowing product-line income statement for the year: Product Tatal No of mts sokd 5,000 4,000 4,000 Saks Varible enpermes 200,000 S 120,000 100,000 S 60.000 40,000 S 20,000 60,000 40,000 20,000 Cotribution mangin 80,000 40,000 20,000 Fihed expenses Rert Depreciin 10,000 12,000 8,000 5.000 6,000 2,000 2,400 3,000…

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS