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: A company has the following data about its costs: Variable unit cost: Raw material $2.3 Labor $1.2…

A: The contribution margin is considered as an excess of revenue over variable cost.

Q: calculate the contribution, the margin of safety and the break even point

A: Contribution margin per unit = Selling Price per unit - Variable cost per unit

Q: Problem 7 P 200 per unit Sales price Fixed costs: Marketing and administrative Manufacturing…

A: The unit cost is calculated as total cost divided by number of units.

Q: Question 2 Part B RDX produces a LED bed side lamp. Information for this product is as follows: Unit…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: Emeka Company has provided the following information: Sales price per unit $52 12 Variable cost per…

A: 1. Contribution Margin per Unit - Contribution Margin is the difference between selling price per…

Q: QUESTION 4 Exxarro Llimited is considering pricing and costing for the year ahead. The following…

Q: Radison Inc. sells a product for $

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: Moon desires a profit equal to an 18% return on invested assets of $1,440,000. a. Determine the…

A: Hi student Since there are multiple subparts asked, we will answer only first three subparts.…

Q: )

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

Q: V. We are producing and selling 2 different types of goods coded as A and B. Production instruments…

A: Sales Mix : Sales mix refers to the part of sales a single product represents in company's total…

Q: What type of cost is this? Total Costs Units January $20,124 February $19,415 1,849 1,590 If it is a…

A: Determine cost per unit for both months.

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: In applying the high-low method, what is the unit variable cost? Month Miles Total Cost January…

A: High-low cost method: High-low cost method is cost method where it is used to separate the variable…

Q: npt in Progress npany has a unit selling price of $505, variable costs per unit of $294, and fixed…

A: The objective of this question is to calculate the break-even point in units for a company given the…

Q: Question Content Area If fixed costs are $284,000, the unit selling price is $35, and the unit…

A: The objective of this question is to calculate the break-even sales in units after the fixed costs…

Q: Question Content Area Steven Company has fixed costs of $271,352. The unit selling price, variable…

A: The break even point for the entire company can be calculated as ratio of fixed costs and weighted…

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: A Problem 21-5A B C Question 1 Unit Selling Price Unit Variable Cost Unit Contribution Margin…

A: BREAKEVEN POINT Break Even means the volume of production or sales where there is no profit or…

Q: ormula and enter the amounts to calculate the variable cost per inspection. (Round to the nearest ge…

A: We can use high low method by making difference from high value with low value

Q: The table below shows monthly data collected on production costs and on the number of units produced…

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

Q: Using the following information, what would variable cost per unit be at 8,000 units? 2,000 3,000…

A: Total variable cost is the cost which varies with the change in the production volume. If the…

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: 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: Cost Schedules Variable costs Direct labor per unit OMR 5.00 Direct materials 3.00 Variable overhead…

A: Break even point is that level of Sales where the profit is zero.

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: Income Statement Sales revenue (550 units x $45) Variable cost (550 units × $30) Contribution margin…

A: Degree of Operating leverage measures the percentage change in operating income for a one percentage…

Q: Question 5 Company E has the following information on its management books: Total Fixed Costs:…

A: To calculate the price at which Company E must sell its product to break even, we need to determine…

Q: Question 3 * Question 3 Data concerning the four product lines are as follows: PRODUCT LINE A C…

A: When some input is in limited capacity , then we need to find out contribution per input. For…

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

A: Contribution per unit = Selling price per unit - Variable cost per unit…

Q: Need help with this Question provide Answer

A: Total CostProduction January$437,7602,090 Units←LowestFebruary$458,6803,670 Units March$680,9605,890…

Q: Seved Cardinal uses the high-low method of estimating costs. Cardinal had total costs of $24,295 at…

A: High low method: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest…

Q: The following are the selling price, variable costs, and contribution margin for one unit of each of…

A: The contribution margin is the margin left after deducting variable costs from the sales revenue of…

Q: Kyrie Company produces different sizes of basketballs. The following costs were incurred during the…

A: Note:We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Price/unit $ 2$ $ $ 14 Variable cost/unit 4 Total fixed cost 400,000 500,000 Target profit Calculate…

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

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

A: The contribution gap is the difference between a product's price and any associated variable…

Q: Sales revenue (30,000 units) Variable costs Contribution margin Fixed costs Operating income At the…

A: Break even point is the situation were the company makes no profit or incur no loss. Hence at break…

Q: Question #2 Car Suds, Inc. has the following information available for December 2023. Unit selling…

A: To tackle this, let's first address each requirement step by step:(a) Prepare a CVP…

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

s
Your Answer Correct Answer Your answer is incorrect. Sandhill Company has a unit selling price of $392, unit variable costs of $272, and fixed costs of $206,400. Compute the break-even point in units using (a) the mathematical equation and (b) unit contribution margin. (a) Break-even point (b) Break-even point units units
Need Help
A6
Problem No. 4 - Cost Volume Profit Analysis CBA Company provided you with the following information: Product C E F Units sold 60,000 20,000 20,000 25,000 Unit selling price P40 P35 P35 P35 Material cost per unit P15 P18 P20 P16 Labor cost per unit P5 P3 P3 P2 Variable cost per unit P2 P1 P1 P1 Total fixed costs P1,019,200 Desired profit P784,000 Requirement: 1. Determine the volume of each product to show a net profit of P784,000. 2. Prepare a statement of comprehensive income showing the sales, contribution margin of each product and total, and the net profit of P784,000.
Question Content Area Moon Company uses the variable cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 75,000 units of Product T are as follows: Variable costs per unit: Direct materials $ 7.00 Direct labor 3.50 Factory overhead 1.50 Selling and administrative expenses 3.00 Total $15.00 Fixed costs: Line Item Description Amount Factory overhead $45,000 Selling and administrative expenses 20,000 Moon desires a profit equal to an 18% return on invested assets of $1,440,000. c. Determine the markup percentage for Product T. Round your answer to one decimal place.fill in the blank 1 of 1%
Question Content Area Sales Mix and Break-Even Analysis Olmstead Company has fixed costs of $2,170,920. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $700 $380 $320 ZZ 940 760 180 The sales mix for Products QQ and ZZ is 35% and 65%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product QQ fill in the blank 1 unitsb. Product ZZ fill in the blank 2 units
What type of cost is this? Total Costs Units January $100,4881,057 February $100,488880 If it is a mixed cost, enter a 1 for your answer. If it is a variable cost, enter a 2 for your answer. If it is a fixed cost, enter a 3 for your answer.
What is the expected added profit from the Challenger line ? Challenger Bikes Selling Price per Unit Materials Direct Labour Overhead (40% Variable) Total Per Unit Relevant Cost Estimated Additional Contribution Margin Estimated Sales Unit Estimated Increase in profit $39.80 19.6 9.8 (40%*24.50) $69.20 $92.29 $69.20 $23.09 25000 $577,250
What is correct option? No plagiarism please
mpt in Progress mpany has a unit selling price of $505, variable costs per unit of $294, and fixed costs of $164,580. Calculate the break- n units using the mathematical equation and the contribution margin per unit. point in units using the mathematical equation point in units using the contribution margin per unit k and Media er units units Attempts: unlimited Submit Answer
A 2,833 units Number of units Sale price per unit $200 Variable costs per unit 80 Calculate: Contribution margin per unit Total contribution margin