Karina Company prepared the following preliminary forecast concerning productJungling Boot for 2021 assuming no expenditure for advertising:Selling price per unitP10100,000Unit salesVariable costFixed CostP600,000P300,000Based on the market study in December 2020, Karina estimated that it couldincrease the unit selling price by 15% and increase the unit sales volume by 10% ifP100,000 were spent on advertising. Assuming that Wilson incorporates thesechanges in its 2021 forecast, what should be the operating income for ProductJungling Boot?P205,000P175,000P190,000) P365,0002

Variable expenses vary with production while fixed cost does not. Variable expense per unit remains…

Answered: Jungling Boot for 2021 assuming no…

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 April 2021, the actual cost per ASM (available seat mile) for Southwest Airlines was approximately 12.30. This as our best estimate of marginal cost, and assuming the price elasticity of demand is -3.5, find the profit maximizing air fare for Southwest Airline. A. $16.5. B. $17.22 C. $26.5. D. $35.5. E. $45.5.
For XYZ Company, how many units of their product would have to be sold to yield a target operating income of $46,000 for the financial year ending 2021, assuming variable costs are $35 per unit, total fixed costs are $4,000, and the unit selling price is $60? O a. 1,800 units O b. 2,000 units Oc. 160 units O d. 1,429 units E PAGE FINISH ATTEMPT ... re to search W A GD 4 d4) ENG O go) 19:12 07-04-2021 hp ort sc delete home end pg up 96 & 8 - backspace num lock R 8 A home F G н K enter 5 0 B M pause ↑ shift 2 end alt ctrl ins
X Company had the following information available for 2020: Number of units sold 30,000 units Selling price per unit $1,000 Variable cost per unit $650 Total fixed costs $8,750,000 Based on the above, the break-even point in units is: * 25,000 units 17,500 units 13,462 units None of the above
X Company had the following information available for 2020: Number of units sold 32,000 units Selling price per unit $1,250 Variable cost per unit S750 Total fixed costs $14,000,000 Based on the above, the unit contribution margin is: * 40% $500 $16,000,000 O None of the above
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The cost accountant of Sacramento Company provided you the 2019 and 2020 selling price per unit, variable cost per unit and total fixed costs as follows: (2019: P20; P12; P50,000) and (2020: P22; P13.20; P50,000). What is the effect in changes in selling prices and variable costs to break-even volume from 2019 to 2020? * Insufficient data to determine the effect in break-even volume. Decrease in break-even volume. Increase in break-even volume. No change in break-even volume.
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Advertising expense was not included in the above. Based on market study in December 2019, the company estimated that it could increase the unit selling price by 10% and increase the unit sales volume by 20% if P200,000 would be spent on advertising. If Omega DB will incorporate these changes in its 2019 forecast, what would be the operating income? a.P480,000 b.P720,000 c.P680,000 d.P420,000
Baryans Corporation provided the following partial income statements and detailed information for the past two years: 2021 2020 Changes Sales P360,000 P192,000 P168,000 Cost of sales 158,400 96000 62,400 Gross income 201,600 96,000 105,600 Unit selling price 150 120 Unit cost 66 60 Quantity sold 2,400 1,600 How much is the sales price variance? P72,000 unfavorable P57,600 unfavorable None of the other choices P72,000 favorable P57,600 favorable Refer to the case of Baryans Corporation. How much is the cost price variance? None of the other choices P14,400 unfavorable P57,600 unfavorable P14,400 favorable P57,600 favorable Refer to the case of Baryans Corporation. How much is the cost volume variance? P48,000 favorable None of the other choices…
(0) Given i formation of Bolux Milling as follows Sales. 200000 Variable cost. 100000 Fixed cost. 60000 What is percentage increase in ptoduction to earn same amount of net profit in Dec 2019 if the selling orice is reduced by 10%
Carla Vista Company has the following information available for September 2020. Unit selling price of video game consoles $400 Unit variable costs $240 Total fixed costs $54,400 Units sold 600 (a)Compute the unit contribution margin. Unit contribution margin $ (b)Prepare a CVP income statement that shows both total and per unit amounts. (c)Compute Carla Vista’ break-even point in units. Break-even point in units units (d)Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.
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