Question 5In 20X7, Company E sold its only product for £16 per unit. Variable costs per unit were £7.40.Fixed costs were £750,000.In 20X8, the selling price per unit is expected to fall by 10 per cent, variable costs per unit areexpected to rise by 15 per cent, while fixed costs are expected to rise by four per cent. Thebudgeted sales for 20X7 were 150,000 units and for 20X8 are 160,000 units. What is the margin ofsafety for 20X8?

Break Even Point (BEP) :— It is the point of production where total cost is equal to total revenue.…

Answered: Question 5 In 20X7, Company E sold its…

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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PROBLEM 10 The controller of Palma Company is examining the following budgeted and actual income statements for its principal product for 2021. All amounts are in thousands of pesos. Budget P4,800.0 1,668.0 P3,120.0 Actual P4,967.2 1,780.8 P3,186.4 Sales Variable cost Contribution margin The budgeted unit selling price is P8.00. Actual unit volume is 6% over budget, but the actual selling price is below budget. Per-unit variable costs are incurred as budgeted. Determine the sales price variance and sales volume variance.
11 A retail business budgets for a period with a total sales revenue (operating revenue) of kr 45,000,000. Total costs (fast and variable costs) are expected to account for 90% of sales revenue. Budgeted coverage rate is 20%. a) What is budgeted zero point sales? b) If the budgeted sales revenue is increased to 60,000,000, how much will the total reach the costs make up of the sales revenue? Enter the answer with two decimal places Please help as fast as possible:(
Question 29 Cases Ltd sells premium phone cases. The following data are available regarding their annual sales. Actual Budgeted 12,400 11,600 £165,000 £ 84,000 Sales (units) Sales (value in £) Variable costs at standard price The sales volume variance is: O A. £4,161 adverse OB. £5,586 adverse O C. £4,448 adverse O D. £4,448 favourable O E. £5,586 favourable OF. £4,161 favourable £ 154,500 £90,000
Producers' Surplus The demand function for a certain brand of CD is given by p = -0.01x2 -0.2x + 19 where p is the unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. The supply function is given by p = 0.01x² + 1.1x +4 where p is the unit price in dollars and x stands for the quantity that will be made available in the market by the supplier, measured in units of a thousand. Determine the producers' surplus if the market price is set at the equilibrium price. (Round your answer to the nearest dollar.) $ Need Help? Read It Submit Answer
QUESTION 3 REQUIRED Study the information provided below and calculate the following independently: 3.4 3.5 The total Marginal Income and Net Profit/Loss, if the selling price is adjusted to R90 per unit and the non-manufacturing fixed costs decrease by R20 000. The number of units that must be sold to earn a net profit of R1 440 000, if the variable costs increase by 10%. INFORMATION Ascot Ltd manufactures shirts. The following information was extracted from the budget for the month ended 28 February 2023: Sales Selling price per unit Direct material cost per unit Direct labour cost per unit Variable manufacturing overhead costs per unit Sales commission Fixed manufacturing overhead costs Fixed selling and administrative costs 50 000 units R100 R30 R18 R7 R5 per unit sold R400 000 R200 000
Question 14 ( If the budget for your hotel had 100 rooms, open 300 days a year, with 50% occupancy and an ADR of $80, fixed costs of $750,000 and with a marginal cost per room of $17.50 then a) What would be your budgeted sales revenue. b) If your actual sales revenue was $1,5000,000 what would be the variance in % c) If your ADR as actually $85 would the variance be positive or negative d) If your actual marginal cost was $17.25 would the variance be positive or negative? e) If you actually sold 155,000 rooms would the variance be positive or negative
Question 4 Palladium (Pty) Ltd has given you the following information relating to normal (budgeted) information and its expected promotional information: Normal Data Weekly sales (units) Normal variable cost per unit Contribution margin % Palladium (Pty) Ltd would like to boost the sales of its products and predicts that by applying a promotional discount of 20% to its product and incurring an additional fixed cost of R250 000, unit 150 000 R0,30 80% sales will be 2 and a half times higher than normal sales. Normal variable cost per unit is expected to remain the same for the promotional period. The promotional period is expected to last six (6) weeks. Q.4.2 Calculate the unit sales multiplier needed during the promotion to break even.
7. Division X produces a single product for both Division Y and an external market. It has spare capacity to produce another 20,000 items. Additional details for Division X are as follows: Information for Division X Price of product sold to outside market Current transfer price Variable cost per item made in division Fixed costs per item (based on budget) Division Y has requested a further 5,000 items. £25 £20 £12 £6 What is the minimum price that Division X should ask per item? (a) £12 (b) £18 (c) £20 (d) £25
MC Qu. 7-70 Santa Fe Production sells a single product to Santa Fe Production sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 36,400, a selling price of $28, variable cost per unit of $10, and total fixed costs of $384,000. If Santa Fe’s unit sales are 300 units less than anticipated, its break-even point will: Multiple Choice increase by $18 per unit sold. decrease by $18 per unit sold. increase by $10 per unit sold. decrease by $10 per unit sold. not change.
am. 40.

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