I need answer of this question solution general accounting Our company is a price-taker and has the following informationavailable for the current year:⚫ Budgeted production: 180,000 units••.Desired operating income as a percentage of total assets:14%Current market price of our product: $45.00 per unitTotal assets: $15,000,000 What is our company's desiredprofit for the year?

Step 1: Determine the Desired Operating Income using the formula• Desired Operating Income = Desired…

Answered: Our company is a price-taker and has…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 40P

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A company can generate a maximum sales of 825,000 a year. The variable cost ratio to sales is 55% and fixed costs are 128,430 a year. The desired net income for the year is 168,570. At what percentage capacity level should the company operate to realize the desired net income?
Harrison Co. expects to sell 200,000 units of its product next year, which would generate total sales of $17 million. Management predicts that pretax net income for next year will be $1,250,000 and that the contribution margin per unit will be $25. Use this information to compute next year’s total expected (a) variable costs and (b) fixed costs.
Rose Trading had RM210,000 of net profit in year 2021 when the selling price per unit was RM150, the variable costs per unit were RM90, and the fixed costs were RM570,000. Management expects per unit data and total fixed costs to remain the same in year 2022. The manager of Rose Trading is under pressure from investors to increase net profit by RM52,000 in year 2022.Required:(i) Compute the number of units sold in year 2021.(ii) Compute the number of units that would have to be sold in year 2022 to reach the shareholders’ desired profit level.
Suppose that a company expects the following financial results from a project during its first-year operation: Sales revenue: $300,000 Variable costs: $100,000 Fixed costs: $50,000 Total unit produced and sold: 10,000 units a. Draw and label a break-even point graph. b. Compute the contribution per unit. c. Compute the break-even point in units sold. d. Compute the profit be if only 7500 units are sold
Blossom Company had the following operating data for the current year: sales, $460000; contribution margin, $100000; total fixed costs (controllable), $50000; and average total operating assets, $250000. If management is able to improve its contribution margin by $30000 and hold its fixed costs constant, what would Blossom's ROI be for the year? O 20%. O 32%. O 40%. O 17%.
at all products are sold). Question 2 The demand for the output of a certain company is very elastic and modem plant recently installed is capable of greatly increased production. Output at present is 80,000 units per year, and 500,000 units are estimated to be within the capacity of the new plant. The present selling price per unit is Rs 15. The need for flexible budgeting is recognized and six alternative levels of output in addition to the present level are contemplated. Six equal increments in annual output level, up to a maximum of 500,000 units, would involve corresponding reductions of R. 1 each in unit price to Rs 9 per unit at the maximum output. The present variable costs amount to Rs 400,000. Pixed costs which at present amount to Rs 200,000 are not expected to increase for any of the six alternative output levels contemplated. Semi-fixed cost are expected to vary from the present annual figure of Rs 230,000 to Rs 320,000, the upward steps being to Rs 260,000 to Rs 220,000…
⦁ MNO Company has projected to sell 500,000 units of its primary product in 2022. It estimates the selling price to be $50 per unit. Required: ⦁ If MNO Company Estimates the unit cost to produce the 500,000 units consists of Material cost $5; Direct labor cost $7; and manufacturing overhead $8. What is the total production cost for the its annual projected sales unit? Show Computation in a production budget format.

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