PROBLEM 2. Outlast Company's projected profit for the coming year follows: Per Unit Total P200,000 (120,000) 80,000 (64.000) P 16,000 Sales P20 Less: Variable costs (12) P 8 Contribution margin Less Fixed expenses Income 4. Suppose Outlast would like to earn operating income equ to 20 percent of sales revenue. How many units must be sold for this goal to be realized? 5. For the projected level of sales, compute the margin of safety.

PROBLEM 2. Outlast Company's projected profit for the coming year follows: Per Unit Total P200,000 (120,000) 80,000 (64.000) P 16,000 Sales P20 Less: Variable costs (12) P 8 Contribution margin Less Fixed expenses Income 4. Suppose Outlast would like to earn operating income equ to 20 percent of sales revenue. How many units must be sold for this goal to be realized? 5. For the projected level of sales, compute the margin of safety.

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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A. From the following particulars: Sales $ 120,000 Variable Cost $ 60,000 Fixed Cost $ 60,000 Calculate: 4. Break Even Point in $ sales 5. Margin of Safety 6. Profit when sales are $500,000
What is residual income on these facts? Return on investment (ROI) 20% Sales $400,000 Margin 4% Minimum required rate of return. 16% O $ 6,000 O $ 16,000 O $ 3,200 $12,800 O $10,000
PAGE 1.1 NUBD Co. plans to market a new product. Based on its market studies. It estimates that it can sell 70,000 units in 2021. The selling price per unit is P2.00. Variable cost ratio is 40% of sales. Fixed costs are estimated to be P60,000. A.Compute the break-even point in units. B.Compute the break-even point in sales pesos.
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B. Consider the following: Total variable costs $200,000 Total fixed costs $150,000 Annual volume of units 500 Average invested capital $400,000 Target Return on investment 20.0% To the nearest tenth, what is the markup percentage required to earn the target return on investments using the cost-plus formula based on total costs?
Assume the following information: Amount Per Unit Sales $ 600,000 $ 40 Contribution margin $ 360,000 $ 24 Net operating income $ 240,000 If the selling price per unit increases by 8% and unit sales drop by 6%, then the best of estimate of the new net operating income is: Multiple Choice $263,520. $243,520. $253,520. $233,520.
Calculate the information below and use income statement A) PV ratio B)profit when sales are 20000 C)New BE point if selling price is reduced 20% Fixed cost 4000 Break even point 10000
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Question 2: Muscat Company has the following information. OMR Fixed Cost 8750 Break even Sales 16000 a) PV Ratio b) Profit when sales are 20000 New BE point if selling price is reduced by %25
Calculate the information below A) PV ratio B)profit when sales are 20000 C)New BE point if selling price is reduced 25% Fixed cost 8750 Break even sales 16000