Q-4: CVP Analysis Following are the products produced by ARY LTD. Particulars Sale price per unit Variable cost per unit Contribution margin Fixed cost Rs1,000,000. EQUIRED 1. Calculate overall break even quantity, sales mix of 50%,30% & 20%. 2. Calculate break even sales in rupees for each of the above products: A Rs.100 B Rs.100 Rs.100 20 80 60 40 80 20

Q-4: CVP Analysis Following are the products produced by ARY LTD. Particulars Sale price per unit Variable cost per unit Contribution margin Fixed cost Rs1,000,000. EQUIRED 1. Calculate overall break even quantity, sales mix of 50%,30% & 20%. 2. Calculate break even sales in rupees for each of the above products: A Rs.100 B Rs.100 Rs.100 20 80 60 40 80 20

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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Shoosta Ltd produces two different products with the following monthly data: A1 A2 Total Selling price per unit $100 $12 Variable cost per unit $ 70 $ 3 Expected unit sales 21,000 14,000 35,000 Sales mix 60 percent 40 percent 100 percent Fixed costs $500,000 Assume the sales mix remains the same at all levels of sales. Round to the nearest unit of product, hundredth of a per cent, and nearest cent where appropriate. Required (show your workings for each question): A) Prepare a contribution margin income statement for the month.
Product: Complan Revenue per unit Total Variable Costs of Goods Sold Total Fixed Costs of Goods Sold B D ASSUMPTIONS Denver Santa Fe $30 $900,000 $30 $2,520,000 $1,650,000 $0 $150,000 $200,000 $320,000 $300,000 2 Total Variable Selling and Administration Expenses Total Fixed Selling and Administration Expenses Quarterly volume of units sold in the fourth quarter 20Y3 200,000 200,000 Projected Contribution Margin based Income Statement For Fourth quarter 20Y2 Sales Total Variable costs Contribution margin Denver $ Santa Fe $ An $6,000,000 $6,000,000 Co $1,050,000 $2,720,000 Co $4,950,000 $3,280,000 Co $1,970,000 $300,000 Cor $2,980,000 $2,980,000 Cor Total Fixed costs Net income 3 Calculate the followings: Variable Cost per unit Contribution Margin per unit Break Even units (use Roundup formula) Break Even sales (Break even units x Selling price per unit) Margin of Safety percentage Operating Leverage Denver Santa Fe $5.25 $24.75 79,596.00 $2,387,880 60.20% 1.66 Project Description Part…
Shoosta Ltd produces two different products with the following monthly data: A1 A2 Total Selling price per unit $100 $12 Variable cost per unit $ 70 $ 3 Expected unit sales 21,000 14,000 35,000 Sales mix 60 percent 40 percent 100 percent Fixed costs $500,000 Assume the sales mix remains the same at all levels of sales. Round to the nearest unit of product, hundredth of a per cent, and nearest cent where appropriate. Required (show your workings for each question): b) How many units in total must be sold to break even?
Question 6, Part 3
Cost Volume Profit Analysis Break-Even Point, CM ratio, Margin of Safety (6.50) Universal product distributes single product a woven basket whose selling price is Rs.15 and variable expense is Rs.12 per unit. The company’s monthly fixed expense is Rs. 4,200. Required: Using Equation method: Compute break-even point in unit sales. (1.0) Compute break-even point in sales dollars and contribution margin ratio. (1.0) Using Formula method: Compute break-even point in unit sales. (1.0) Compute break-even point in sales dollars and CM ratio. (1.0) MC distributes sun umbrella for resort hotels. Data concerning next month’s budget appears below: Selling price Rs. 30 per unit Variable expenses Rs. 20 per unit Fixed expenses Rs. 7,500 per month Unit sales…
Exercise 1: Company B has the following information for the year 20XO: Sold units Sales price per unit Unit variable cost Total fixed cost (interest cost of $160,000 included) Operating assets at the beginning of the year Operating assets at the end of the year Requirements: 50,000 $160 $96 1,360,000 $18,000,000 $22,000,000 a. Calculate the ROI for the year. b. Given that the minimum required rate was 8% per year, calculate the RI for the year. c. In 20X1, an improvement is taken in order to save the direct material cost. A saving of $200,000 is achieved. With the other information remains unchanged, calculate the ROI of 20X1.
CVP analysis—what-if questions; sales mix issue Miller Metal Co. makes asingle product that sells for $32 per unit. Variable costs are $20.80 per unit, and fixed costs total $47,600 per month.Required:a. Calculate the number of units that must be sold each month for the firm to break even.b. Assume current sales are $160,000. Calculate the margin of safety and the margin of safety ratio.c. Calculate operating income if 5,000 units are sold in a month.d. Calculate operating income if the selling price is raised to $33 per unit, advertising expenditures are increased by $7,000 per month, and monthly unit sales volume becomes 5,400 units.e. Assume that the firm adds another product to its product line and that the new product sells for $20 per unit, has variable costs of $14 per unit, and causes fixed expenses in total to increase to $63,000 per month. Calculate the firm’s operating income if 5,000 units of the original product and 4,000 units of the new product are sold each month. For…
Question 5:- Ram Ltd. produces and sells 1,500 units of product L each month with total variable costs of RS 19,500 and total fixed costs Rs 19,500. Idle capacity would permit the acceptance of a special order for 1,000 units each month. The lowest acceptable selling price per unit of the product is Rs 26.00 Rs 15.00 Rs 11.00 Rs 19.50 a) b)
please answer all three subparts
Question 4
FP1
Q6 The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost / revenue relationship for the coming year is expected to follow the same pattern as in the preceding year income statement for the year ending March 31 is as follow s Sales (200,000 units @ 2.5 Each) Rs. 5, 00,000 Variable cost 3, 00,000 Contribution margin 2, 00,000 Less Fixed cost 100,000 Profit before tax 100,000 Less tax 35,000 Profit after tax 65,000 Required At what level of sales will the company be able to maintain its present pre- tax profit position even after expansion?