Question 5Breakeven pointProduct 1Product 2 Product 3Product 4Product 5112011147 Selling priceUnit variable costFixed costs10 Target profit118.1691160001200900018000200008000120012001200120011 Breakeven in units12 Breakeven in Dollars13 Sales units needed to achieve the target profit14 The best product for this year151617181920

Lets understand the basics. Break even point is a point at which no loss no profit contribution…

Question 5 Breakeven point Product 1 Product 2 Product 3 Product 4 Product 5 11 11 20 11 14 Selling price Unit variable cost Fixed costs Target profit 8. 16 11 9000 18000 20000 8000 6000 1200 1200 1200 1200 1200 Breakeven in units 2 Breakeven in Dollars 3 Sales units needed to achieve the target profit 4 The best product for this year

Question 5 Breakeven point Product 1 Product 2 Product 3 Product 4 Product 5 11 11 20 11 14 Selling price Unit variable cost Fixed costs Target profit 8. 16 11 9000 18000 20000 8000 6000 1200 1200 1200 1200 1200 Breakeven in units 2 Breakeven in Dollars 3 Sales units needed to achieve the target profit 4 The best product for this year

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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20 Sales Contribution margin Fixed costs (1) Compute the degree of operating leverage (DOL) for each company. (2) Which company is expected to produce a greater percent increase in income from a 10% increase in sales? Required 1 Required 2 $ 7,825,600 6,375,600 4,989,600 Complete this question by entering your answers in the tabs below. Skittles's DOL Starburst's DOL Compute the degree of operating leverage (DOL) for each company. Degree of Operating Leverage $ Contribution margin $ Numerator: $ 3,828,000 1,428,000 918,000 Answer is complete but not entirely correct. 6,375,600 1,428,000 I $ 1 $ Denominator: Income II 2,910,000 = = 2,836,000 = Ratio Degree of Operating Leverage 2.25 0.49
answer number 11 with solution pls
How many units of A should be produced to maximize the profit of company?
QUESTION 6 You have information about 4 different companies below in the table. The variable and fixed costs are expressed as the percentage of revenue based on the current sales. The companies are otherwise very similar. Which of these companies is probably have the highest degree of operating leverage? A B с D Variable cost (%) 35% 27% 50% 80% 50% 60% 30% 5% Fixed cost O Project A O Project D O Project C O Project B
Exercise 18-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $330 and of each door is $760. The variable cost of each window is $190 and of each door is $480. Fixed costs are $940,800. (1) Compute the weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin (3) Compute the number of units of each rpoduct that will be sold at the break-even point
Question Four i) Jambo Lid manufactures and markets a single product. The following information is available: Materials Conversation costs (variable) i) Dealers Margin Selling prices Fixed Costs 1,250,000 Present sales 400,000 Units Capacity utilization: 60% Shs. Per Unit 40 30 10 100 There is an acute competition. Extra efforts are necessary to sell. Suggestions have been made for increasing sales. By reducing sales price by 5% ii) By increasing dealers margin by 25% over existing rate. Which of the two suggestion you would recommend if the company desires to maintain the present profit? Give reasons.
Unit VI question 6
Exercise 3-15A (Algo) Multiple product break-even analysis LO 3-6 Fanning Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Required Super $.92 (60) a. Total number of products b. Product Super b. Product Supreme $32 Supreme $ 127 Fanning expects to incur annual fixed costs of $199,100. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme. (81) units units units $.46 a. Determine the total number of products (units of Super and Supreme combined) Fanning must sell to break even. b. How many units each of Super and Supreme must Fanning sell to break even? Note: For all requirements, do not round intermediate calculations.
EXERCISE 6-12 Target Profit and Break-Even Analysis; Margin of Safety; CM Ratio [LO1, LO3, LO5, L06, LO7] Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales... Variable expenses $450,000 $30 180,000 12 Contribution margin Fixed expenses. 270,000 216,000 $18 Net operating income $ 54,000 Required: 1. What is the monthly break-even point in units sold and in sales dollars? Without resorting to computations, what is the total contribution margin at the break-even point? 3. How many units would have to be sold each month to earn a target profit of $90,000? Use the formula method. Verify your answer by preparing a contribution format income statement at the target sales level. 2. 4. Refer to the original data. Compute the company's margin of safety in both dollar and percent- age terms. 5. What is the company's CM ratio? If sales increase by $50,000 per month and there is no change in fixed expenses, by how much would you…
E20.25 LO 20.3 Cost-plus pricing formulas; missing data: manufacturer The following data relate to LawnMate Corporation's top-of-the-line lawnmower. Variable manufacturing cost Applied fixed manufacturing cost Variable selling and administrative cost Allocated fixed selling and administrative cost $500 150 120 ? To achieve a target price of $950 per lawnmower, the markup percentage is 12.5 per cent on total unit cost. Required 1. What is the fixed selling and administrative cost allocated to each unit of LawnMate's top-of-the-line mower? 2. For each of the following cost bases, develop a cost-plus pricing formula that will result in a target price of $950 per mower: (a) variable manufacturing cost (b) absorption manufacturing cost (c) total variable cost.
Exercise A-2 Absorption Costing Approach to Setting a Selling Price [LOA-2] Martin Company is considering the introduction of a new product. To determine a selling price, the company has gathered the following information: Number of units to be produced and sold each year 15,500 Unit product cost $ 50 Projected annual selling and administrative expenses $ 66,000 Estimated investment required by the company $ 450,000 Desired return on investment (ROI) 18 % The company uses the absorption costing approach to cost-plus pricing. Required: 1. Compute the markup required to achieve the desired ROI. ((Round your final answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) 2. Compute the selling price per unit. (Round your intermediate and final answers to 2 decimal places. )