Problem 2 The price and cost data shown in the table below are for each of the three firms, F, G and H. Firm F G H Sate price per $18.00 $21.00 $30.00 unit Variable operating cost $6.75 $13.50 $12.00 per unit Fixed operating $45,000 $30,000 $90,000 cost Operating breakeven point Rank (1st, 2nd, or 3rd) (a) What is the operating breakeven point in units for each firm? Fill in the blanks in the table above. (b) How would you rank these firms in order from most risky to least risky? Fill in the blanks in the table above.

Problem 2 The price and cost data shown in the table below are for each of the three firms, F, G and H. Firm F G H Sate price per $18.00 $21.00 $30.00 unit Variable operating cost $6.75 $13.50 $12.00 per unit Fixed operating $45,000 $30,000 $90,000 cost Operating breakeven point Rank (1st, 2nd, or 3rd) (a) What is the operating breakeven point in units for each firm? Fill in the blanks in the table above. (b) How would you rank these firms in order from most risky to least risky? Fill in the blanks in the table above.

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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genow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Lo... r Operating Leverage Teague Co. reports the following data: Sales Variable costs Contribution margin Fixed costs $480,000 264,000 $216,000 175,200 $40,800 Income from operations Determine Teague Co.'s operating leverage. Round your answer to one decimal place.
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Question 5 ABC Ltd sells a product that has a price of GH¢8.00 per unit, variable manufacturing cost of GH 4.00 per unit. ABC Company has a fixed manufacturing cost of GH¢150,000 and fixed general, selling and administrative expenses of GH¢50,000. You are required to answer the following questions as the management accountant of ABC Ltd. a. How many units does ABC Company have to sell to breakeven? b. How many units does ABC Company have to sell to earn an operating income of GH$200,000? c. d. What sales revenue must ABC Company achieve to breakeven? e. What sales revenue must ABC Company achieve to earn an operating income of GH$200,000? Suppose ABC expects to sell 300,000 units, what is the margin of safety? How do you explain your result?
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estion 2: vin Question 1: a. Explain the meaning of breakeven point and the benefit of using it in businesses. b. Given the following information for SAMAR Company, answer the following questions: Selling price (per unit) Number of units sold Variable cost (per unit) Fixed cost i.Calculate contribution margin ratio ii.Find Breakeven Point in amount iii.Find Breakeven Point in units 240 R.O 700 R.O 130 R.O 560,000 R.O
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(e) Product Blue Product Red Selling $12.00 $24.00Variable cost $4.00 $8.00Contribution margin $8.00 $16.00Fixed costs apportioned $200,000 $400,00Budgeted Sales Units 140,000 60,000 Calculate the breakeven points, for each product and the company as a whole and comment on your findings f)Discuss the merits and demerits of the cost volume profit analysis (CVP)
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