QUESTION #-1 Lucy Company Has the Following Data5,000 unitCurrent sales levelBirr 20Selling price per unitDirect material cost per unitBirr 8Birr 2Direct labor cost per unitBirr 2Variable overhead per unit20,000Total fixed costA. Break-Even UnitsB. Break-Even SalesC. Margin of safety in number of units and Birr.D. Profit if sales are 20% above the Break-Even SalesE. Sales to make a profit of birr 5,000F. Contribution margin ratio if selling price is increased byG. Breakeven sales if selling price increased by 10%H. Breakeven sales, if fixed cost is increased by 20%I. Degree of operating leverage at the current sales levelJ. If the company wants to increase the sales level by 259decision on net operating income of thecompany.QUESTION #-2: BBF. Inc., a retailing company has two cmonthly contribution format income state for the companyBSales$3,000,000$1Variableexpenses900,00040Contribution margin2,100,00060Fixed expenses1,400,00080Operating income (loss)A study indicates that $340,000 of the fixed expenses bein$700,000($:allocated costs that will continue even if B is dropped. In a1004rO000 in tho calor of A

"Since you have asked multiple questions, we will solve first three sub parts of the first question.…

QUESTION #-1 Lucy 5,000 unit Current sales level Birr 20 Selling price per unit Direct material cost per unit Birr 8 Direct labor cost per unit Birr 2 Variable overhead per unit Birr 2 Total fixed cost 20,000 A. Break-Even Units B. Break-Even Sales C. Margin of safety in number of units and Birr.

QUESTION #-1 Lucy 5,000 unit Current sales level Birr 20 Selling price per unit Direct material cost per unit Birr 8 Direct labor cost per unit Birr 2 Variable overhead per unit Birr 2 Total fixed cost 20,000 A. Break-Even Units B. Break-Even Sales C. Margin of safety in number of units and Birr.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Use the following information to determine the break-even point in units: Unit sales Unit selling…

A: Lets understand the basics.Break even point is a point at which no profit no loss condition arise.…

Q: Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per…

A: The constraining resource is the product or raw material which is available in very limited…

Q: Annual sales volume Unit selling price Variable expense per unit Contribution margin per unit Velcro…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: )

A: Formula for number of units to be sold for desired profit= (Fixed cost +desired profit)…

Q: East West Sales volume (units): Product XX 6,500 6,800 Product YY 3,000 5,000 Sales price: Product…

A: The contribution margin is calculated by subtracting the product's price from any related variable…

Q: . Price per unit: $10 . Variable cost per unit: $7 . Fixed costs: $1,500 Given these data, compute…

A: Introduction: Break even units: It tells the level of sales units where there is no profit nor loss…

Q: TB Problem Qu. 12-120 (Algo) Quamma Corporation makes a... Quamma Corporation makes a product that…

A: Absorption costing: It is a technique that assumes both fixed cost and variable cost as product…

Q: Calculate the following: 1. The revenue per Mix of X and Z 2. The Contribution per mix 3. Average…

A: Under CVP Analysis, Variable Costs, Fixed Costs and Revenues are analyzed and the Impact on Profit…

Q: Q1- You have the following data for the four products (A,B,C,D): PRODUCT VARIABLE FIXED TOTAL NET…

A: Contribution margin = Sales revenue – Variable cost Contribution margin ratio = CM / sales revenue…

Q: Use the following information to compute the number of units that must be sold to achieve a target…

A: The number of units that must to be sold to achieve a target income of $60,000Fixed cost =…

Q: Given the following data: Fixed overheads Selling price Variable cost per unit £40 000 Select one:…

A: Break-even units = Fixed overheads / Contribution margin per unit

Q: The following information is for the Jeffries Corporation Product A Selling price per unit $17…

A: Break even point :— It is the point of production where total cost is equal to total revenue. At…

Q: Units sold Price Sales Variable manufacturing costs Fixed manufacturing costs Variable selling costs…

A: Margin of safety is the amount which is determined by the entity by deducting the breakeven sales…

Q: A7 please help.......

A: Step 1: Show formula version of the solution sheet for a better understanding of the calculations:…

Q: Units sold Total variable costs for above units Total fixed costs Per unit sell price Determine Cost…

A: "Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Calculate total variable cost per unit if fixed cost is 50000 OMR Total Variable cost 500000 OMR and…

A: Total variable cost = 500000 OMR Units produced = 25000

Q: A company sells its products for S80 per unit and has per-unit variable costs of $30. What is the…

A: Contribution margin is the excess of sales price over the direct costs of a product. The…

Q: J a) You are given the cost and volume information below:+ VolumeCost+ 1 unit 10 units 100 units $…

A: Variable Cost :— It is the cost that changes with change in quantity of product. It depends on…

Q: Example 3: Malak Company sells two products X and Y. More information follows: Product X Selling…

A: One unit of goods sold less the variable costs of manufacturing that unit equals the contribution…

Q: There is a material, which demand is: 5000 unit/year. We have Reorder Cost: $10, Holding Cost:…

A: According to the question given, we need to compute the optimal order quantity.Optimal order…

Q: Solve for the missing amounts for the following separate cases. Case 1 2 3 Sales price per Variable…

A: Income statement is one of the financial statements that shows the profitability, total revenue and…

Q: Complete the table below for the missing amounts. E (Click the icon to view the table.) Number of…

A: Formula : Contribution margin = Sales - variable costs Ratio = Contribution / Sales * 100

Q: $550 $231 (a) % (b) $450 (c) $216 % (d) (e) $ (f) $360 20 % %24 %24 %24

A: The contribution margin is calculated by deducting the variable cost from the selling price.

Q: Tito Company sells several products. Information of average revenue and costs are as follows:…

A: Break-even point is the level of sales at which the net operating profit is zero. In other words,…

Q: 1. 2. 3. $ Unit Selling Price $410 $520 $ (e) $ Unit Variable Costs $328 (c) (f) $ Unit Contribution…

A: Contribution margin is defined as what revenue is left with the firm after deduction of its variable…

Q: Hello tutor please provide Solutions

A: To determine the absorption cost per unit, we need to account for both variable and fixed costs…

Q: Question 7 a. O b. O C. O d. Oe. 7. The cost behavior for costs 1 and 2 are as follows: 2,000 Units…

A: A mixed cost is a cost that contains both a fixed cost component and a variable cost component.Costs…

Q: rice nit of sales nit cost xed cost ariable cost otal cost ales revenue Product A 7.00 300.00 4.50…

A: A useful method for assessing a company's financial health and viability is breakeven sales…

Q: Solve for the missing amounts for the following separate cases. Case 1 2 3 لب Sales price per unit $…

A: The contribution margin is calculated as difference between sales and variable costs. The…

Q: Price per unit: $10 Variable cost per unit: $7 . Fixed costs: $1,500 Given these data, compute the…

A: Introduction: Break even units: Division of Unit contribution margin with Fixed cost derives the…

Q: A. $630,000 1. Total Variable Costs (at 45,000 units) В. $480,000 2. Total Fixed Costs (at 45,000…

A: 1)Calculation of total variable cost as follows under:- For 30,000 units =$300,000

Q: Total fixed costs Sale price per unit Variable costs per unit $15,000 $23 $15

A: The contribution margin is calculated as the difference between sales and variable costs. The net…

Q: Variable manufacturing costs are $86 per unit, and fixed manufacturing costs are $64,800. Sales are…

A: Under variable costing only the variable cost incurred in factory is considered to be product cost…

Q: If fixed costs are $246,000, the unit selling price is $120, and the unit variable costs are $71,…

A: Formulas: Break even sales = Fixed cost / Contribution per unit ------------------ Contribution per…

Q: Total Variable cost is 280,000 OMR total units sold is 7000 units calculate the variable cost per…

A: Variable cost per unit is calculated by dividing the total variable cost by the total number of…

Q: Sales Variable Costs Contribution Margin Fixed Costs Operating Income Total at 2,000 UnitⓇer Unit…

A: Fixed costs are incurred regardless of whether the company operates or not; their total remains…

Q: 1. Contribution margin per unit is а. Р50 b. Р55 с. Р80 d. P15 2. The contribution margin ratio is

A: Formula: Contribution Margin Ratio= Contribution Per UnitSales Per unit×100 Contribution per unit=…

Q: Answer letter c and d only

A: Margin of safety is the sales which is above the break-even sales. Break-even sales…

Q: SBD Phone Company sells its waterproof phone case for $90 per unit. Fixed costs total $118,800, and…

A: Compute the contribution margin.

Q: Reynold's Company has a product with fixed costs of $350,000, a unit selling price of $29, and unit…

A: The Break-even point indicates that total units are to be sold by the business entity to recover its…

Q: If the unit sales price is $22 and variable costs are $14, how many units have to be söld to earn a…

A: The number of units to be sold is the target volume to achieve a target profit. Target profit =…

Q: Banner Company produces three products: A, B, and C. The selling price, variable costs, and con-…

A: Contribution margin per hour of labor time spent = Contribution margin per unit / Direct labor hour…

Q: Complete the table below. Units Fixed costs ($) Variable costs ($) Total costs ($) Sales revenue ($)…

A: The first question is answered for you. Please resubmit specifying the question number you want…

Q: 3. From the following particulars, Calculate, BEP (Units and amount) and Margin of safety, if actual…

A: Formula to be used 1. Contribution Per unit= Sale price-contribution per unit 2. P/V Ratio=…

Q: • Price per unit: $10 . Variable cost per unit: $7 . Fixed costs: $1,500 Given these data, compute…

A: Under Marginal costing (variable costing) contribution percentage or contribution per unit of…

Q: Question Content Area Break - Even Sales Currently, the unit selling price of a product is $270, the…

A: Break-even point :— It is the point of production where total cost is equal to total revenue. At…

Q: Emeka Company has provided the following information: Sales price per unit Variable cost per unit…

A: The term Contribution is considered under the Cost volume Profit method. Contribution means that the…

Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2 Solution

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Question #2 Car Suds, Inc. has the following information available for December 2023. Unit selling price of Car Suds Soap Unit variable costs Total fixed costs Units sold $12 $8 $3,300 1,365 Required: (a) Prepare in proper form a CVP income statement that shows both total and per unit amounts. (b) Compute Car Suds breakeven in units and dollars. (c) Compute the margin of safety for Car Suds.
G http Chapter Review My... Sales price Contribution margin ratio Fixed costs Tra.. Vernon Company reported the following data regarding the product it sells: a. Break-even point in dollars a. Break-even point in units b. Sales in dollars b. Sales in units c. Break-even point in dollars c. Break-even point in units $60 Man... $ 10% $216,000 M Questio... Required Use the contribution margin ratio approach and consider each requirement separately. b Ans... 2,160,000 36,000 Bes... Saved a. What is the break-even point in dollars? In units? b. To obtain a profit of $54,000, what must the sales be in dollars? In units? c. If the sales price increases to $72 and variable costs do not change, what is the new break-even point in dollars? In units? US fron.
Calculate the breakeven point and contribution margin. Breakeven point 38,550 units Fixed cost $ 77,100 Contribution margin Selling price per unit $ 5 Variable cost per unit 3
Unit sales (a) Selling price per unit Variable cost per unit Traceable fixed expense TB MC Qu. 12A-46 Woodridge Corporation manufactures numerous... Woodridge Corporation manufactures numerous products, one of which is called Alpha-32. The company has provided the following data about this product Multiple Choice $1,375,220 77,000 76.00 61.00 $1,323,000 $52.220 Help $ $ Management is considering increasing the price of Alpha-32 by 5%, from $76.00 to $79.80. The company's marketing managers estimate that this price hike would decrease unit sales by 5%, from 77,000 units to 73,150 units Assuming that the total traceable fixed expense does not change, what net operating income will product Alpha-32 earn at a price of $79.80 if this sales forecast is correct? Save & Exit
28 )
• Price per unit: $10 . Variable cost per unit: $7 . Fixed costs: $1,500 Given these data, compute the BREAKEVEN number of UNITS. O 150 units 88 units O 500 units 612 units 214 units
Total Fixed cost OMR 25000, Selling Price per unit OMR 20, and Variable cost per unit OMR 12, What will be the Quantity (units) of sales if it is desired to earn a profit of OMR 18000 Select one: O a. 3125 Units O b. 10000 Units O c. 2083.33 Units O d. 1000 Units
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $86 per unit, and fixed manufacturing costs are $193,200. Sales are estimated to be 6,900 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 6,900 units and a plan to produce 9,200 units? X b. How much would variable costing operating income differ between the two production plans? ✓
Determine the missing amounts. Unit Selling Price 1. 2. 3. $ $500 $250 (e) LA $ LA Unit Variable Costs $200 (c) +A $ Unit Contribution Margin $65 (f) $560 (a) Cc M
Product Blue Product Red £ £ Selling 12.00 24.00 Variable cost 4.00 8.00 Contribution margin 8.00 16.00 Fixed cost apportioned 200,000 400,000 Budget sales units 140,000 60,000 Required: a) Calculate the breakeven points, for each product and the company as a whole and comment on your findings b) Discuss the merits and demerits of the cost volume profit analysis (CVP)
a1
Subject:- accounting