QUESTION 1Izdham sell watches at RM10 each and his variable costs (ie plastics and metal) isRM3 for each watch. To sell this watch, the fixed cost (i.e flat fee of rent, salary) isRM100. If you sell 12 watches in 1 month, how much will you eam / lose?(a) Calculate the Gross Profit / Loss(b) Calculate the Net Profit / Loss(c) Calculate the Break Even Point in units.QUESTION 2Ahmad is selling shoes in IOI Malls. If the selling price (SP) per shoes is RM20 perunit and total quantity sold were 500,000 units. The fixed cost (FC) involved wereRM40,000 with a variable cost (VC) of RM10 per unit.a) Calculate the Total Revenue (Gross Profit).b) Calculate the Total Cost.c) Calculate the Net Profit.d) Calculate the Contribution Margin.e) Calculate the Break Even Point (in quantity).f) Calculate the Break Even Point (in Ringgit).g) Calculate the Target Quantity (unit) if the target desired profit is RM100,000.Note:TR=PxQ; GP= TR-TC; TC=FC+VC; VC=UVCXQ; CM=P-UVC;BEP(U)=FC/CM; BEP(RM)=BEP(Q)xSP(per unit); TQ(perunit)=FC+PD/SP(per unit)-VC(per unit) QUESTION 3Use the following information to answer Ql & Q2At December 31 AFN Restaurant records show the following information:$ 10,000CashAccounts Receivable30,00080,000InventoryPrepaid InsuranceLong-term AssetsAccounts PayableNotes Payable due in 10 monthsWages PayableLong-term LiabilitiesStockholders' (Owner's) Equity6,000200,00030,00025,0005,00070,000196,00011. Calculate the company's current ratio.2. Calculate the company's quick ratioThe following is the Balance Sheet of a Sweets Company as on 31* March.(Ans Q3-Q6)RMLiabilitiesASSETSRMShare Capital200,000 Land and Buildings30,000 Plant and Machinery40,000 Stock/Inventories (CA)420,000 Sundry Debtors(CA)100,000 Bills Receivable(CA)50,000 Cash at Bank (CA)840,000140,000Profit & Loss Account350,000General Reserve12% DebenturesSundry Creditors (CL)Bills Payable (CL)200,000100,00010,00040,000840,0003. Calculate the Current Ratio for Sweets Company.4. Calculate the Quick Ratio for Sweets Company.5. Calculate the Inventory to Working Capital for Sweets Company.6. Calculate the Debt to Equity Ratio for Sweets Company.

Name: QUESTION 1Izdham sell watches at RM10 each and his variable costs (ie
Uploaded: 2022-05-24T13:26:03.000Z
Channel: Bartleby
Description: QUESTION 1Izdham sell watches at RM10 each and his variable costs (ie plastics and metal) isRM3 for each watch. To sell this watch, the fixed cost (i.e flat fee of rent, salary) isRM100. If you sell 12 watches in 1 month, how much will you eam / los

"Since you have asked multiple question, we will solve the first question for you. If you want any…

Business

Accounting

QUESTION 1 Izdham sell watches at RM10 each and his variable costs (ie plastics and metal) is RM3 for each watch. To sell this watch, the fixed cost (i.e flat fee of rent, salary) is RM100. If you sell 12 watches in 1 month, how much will you earn / lose? (a) Calculate the Gross Profit / Loss (b) Calculate the Net Profit / Loss (c) Calculate the Break Even Point in units.

QUESTION 1 Izdham sell watches at RM10 each and his variable costs (ie plastics and metal) is RM3 for each watch. To sell this watch, the fixed cost (i.e flat fee of rent, salary) is RM100. If you sell 12 watches in 1 month, how much will you earn / lose? (a) Calculate the Gross Profit / Loss (b) Calculate the Net Profit / Loss (c) Calculate the Break Even Point in units.

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

CH Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $150 for a comforter. Misu Sheet wants to advertise the comforter as "percent markup on cost." a. What is the equivalent rate of percent markup on cost compared to the 20% markup on selling price? (Round your answer to the nearest hundredth percent.) Rate of percent pok int ences b. Is this a wise marketing decision? O Yes No aw %3D w Aa MacBook Air
Austin Avenue Clothiers pays $52 each for sports coats and has a fixed monthly cost of $780. The store sells the coats for $71 each. (a) What is the linear cost-volume function C(x)? C(x) = (b) What is the linear revenue function R(x)? R(x) = (c) What is the break-even number of coats? (Round your answer up to the nearest whole number.)
1. ABC Taxi has an average fixed cost of $8,000 a year for each car. Each mile driven has variable cost $.40 and collect fares of $.60. How many miles a year does each car have to travel before making profit? a. ABC company is contemplating adding a new line of product, which will require leasing new equipment for a monthly payment of $12,000. Variable costs would be $15.00 per product, and selling price per product is $40. What would be profit or loss if business sell 600 of these products? b. If 800 quantity of products can be sold, and a profit target is $10,000, what price should be charged for each product?
4. Assume you are the logistics manager of Apple and need to get 2000 latest MacBook (Retails at $2000 each) to market. Choices include: Rail, cost $1000 and takes a week Air, cost $5000 and take a day Which would you choose? Assume the yearly profit as 10% of sales. Hint – Find cost incurred by the manufacturer per day based on yearly profit. Use that value to find the total cost for each shipping method (shipping charge plus daily costs).
Rolf's Golf store sells golf balls for $27 per dozen. The store's overhead expenses are 26% of cost and the owners require a profit of 18% of cost. a. How much does Rolf's Golf store buy the golf balls for? _____per dozen b. What is the price needed to cover all the costs and expenses? c. What is the highest rate of markdown at which the store will still break even? d. What markdown rate would price the golf balls at cost?
Samsung manufacturers USB charging cables for mobile devices. It sells these cables to distributors for $2.6000000000 each, while their variable costs are 72e per cable, and they have a fixed cost of $43000 to manufacture the cables. 1. What is the Contribution margin (in dollars)? 2. What is the profit function (without units using x as the number of cables sold)? 3. What is their projected profit or loss next month (in dollars), for which Samsung forecasts sales of 23241 cables? 4. What is the break even volume (without units)? For parts 1, 2, and 3, answer to the nearest cent. For part 4, answer to one decimal place (don't round up to the nearest whole unit). Answer: 1. Contribution margin = 2. Profit function: Profit= 3. Profit or loss = 4. Break even volume =
Weber Inc., sells its one product for $40 per unit. The variable cost per unit is $24. The fixed cost per year is $16,000a. What is the break-even point in units?b. What is the break-even point in dollars?c. If Weber would like to have $1,000 profit, how many units should be sold?d. If the selling price changes to $34 per unit, what is the new break-even point in units?
A company is assessing granting credit to a new customer. The variable cost per unit is $88, the current price is $115, the probability of default is 34% and the monthly required return is 4.0%. Calculate the NPV of the switch. Assume the customer will purchase once.
5. If the markup on a washing machine is 53% based on selling price, what is the corresponding percent markup based on cost? 6. A vacuum cleaner sells at $202.91. If the percent markup based on cost is 48%, how much is the cost of the vacuum cleaner? Round off answer to the nearest dollar.
The Tick Tock Clock Company sells a particular clock for $75. The variable costs are $15 per clock and the breakeven point is 230 clocks. The company expects to sell 280 clocks this year. If the company actually sells 355 clocks, what effect would the sale of additional 75 clocks have on operating income? Explain your answer The sale of an additional 75 dlocks would aller an. operating income by the amount of The total effect would amount to 4
Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics: Sales price $ 12.00 per case Variable costs 5.50 per case Fixed costs 403,000 per year Assume that the company plans to sell 77,000 units annually. Consider requirements (b), (c), and (d) independently of each other. Required: What will be the operating profit? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? Note: Do not round intermediate calculations. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 10 percent? Note: Do not round intermediate calculations. Suppose that fixed costs for the year are 20 percent lower than projected and variable costs per unit are 20 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? Note: Do not round intermediate…
Direct Call offers a calling plan that charges $5.00 per month plus $0.02 per minute of call time. Under this plan, what is your monthly cost if you talk for a total of 200 minutes? Select one: O O A. $(1.00) B. $5.00 C. $9.00 D. $4.00