Next year, a business estimate that it will.... Next year, a business estimates that it will sell25,000 units at a selling price of $12 per unit.Variable costs per unit are 1/3 of the sellingprice, and the business estimates that it willmake a profit of $80,000. Calculate the fixedcosts of the business for next year.

`Step 1: Define Operating IncomeThe operating income a company makes depends on its total cost and…

Answered: Next year, a business estimates that it…

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

Mazon Inc. plans to sell 7,000 units each quarter next year. During the first two quarters each unit will sell for OMR12; during the last two quarters the sales price will increase OMR1.50 per unit. What is Mazon's estimated sales revenue for next year? Select one: a. OMR 397,000 b. OMR 357,000 c. OMR 378,000 d. OMR 336,000
Warren's Hats forecasts that it will sell 25,000 baseball caps next year. The company buys its caps for $3 from the wholesaler and sells them for $15 each. If the company will incur fixed costs plus depreciation and amortization of $80,000, then what is the percentage increase in EBIT if the actual sales next year equal 27,000 caps?
Suppose you sell8000 of the 3 pack of lenses in one year. your cost on each 3 pack is $29.95 and you sell them for $59.95 .If your operating expenses for the year total is $144,080,what are your net income and net profit margin percentage?
ABC Corporation sells its product for $12 per unit. Next year, fixed expenses are expected to be $400,000 and variable expenses are expected to be $8 per unit. How many units must the company sell to generate a target profit (net operating income) of $80,000?
Your company has sales of $97,200 this year and cost of goods sold of $71,200. You forecast sales to increase to $113,100 next year. Using the percent of sales method, forecast next year's cost of goods sold.
On the average, a company has a work-in-process lead time of 10 weeks and annualcost of goods sold of $30 million. Assuming that the company works 50 weeks a year:a. What is the dollar value of the work-in-process?b. If the work-in-process could be reduced to 5 weeks and the annual cost of carryinginventory was 20% of the WIP inventory value, what would be the annual savings?
The selling of a product has been set at $300 per unit , and at that price the company expects to sell 1,000 units per year. The company requires a return of 20% p.a . On its investment of $ 1,250,000 in the product . What is the target cost per unit ?
A company is trying to decide whether or not to purchase a new model for its fleet. If it purchases the new model, it will remain in company’s fleet for the next three years. It costs $32,000, will generate revenues of $18,500 each of the next three years, and will be sold at the end of the third year for $5,800. Company’s MARR is 16%. Calculate the PW of this investment. [Enter your answer with no dollar
Last year, Flynn Company reported a profit of $70,000 when sales totaled $520,000 and the contribution margin ratio was 40%. If fixed expenses increase by $10,000 next year, what amount of sales will be necessary in order for the company to earn a profit of $80,000?
The ABC Corporation is considering introducing a new product, which will require buying new equipment for a monthly payment of $5,000. Each unit produced can be sold for $20.00. ABC incurs a variable cost of $10.00 per unit. Suppose that ABC would like to realize a monthly profit of $50,000. How many units must they sell each month to realize this profit?
If the annual cost of a given good rises 2.3% per year for the next 20 years, write an equation to model the approximate cost of the good during any year in the next 20. Determine how long it will take for the price of the good to double.
Transportation costs at a medium-size appliance distributor have been increasing by 9% per year. The company expects this year's cost to be $25,000. Find the equivalent present worth of the costs for years 1 thru 10 at an interest rate of 12% per year.

SEE MORE QUESTIONS

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

Next year, a business estimates that it will sell 25,000 units at a selling price of $12 per unit. Variable costs per unit are 1/3 of the selling price, and the business estimates that it will make a profit of $80,000. Calculate the fixed costs of the business for next year.