What are the required sales? Question:Carter Corporation has fixed costs of$1,800,000, and variable costs are 45% ofsales. What are the required sales if CarterCorporation desires a net income of$200,000?

Explanation of Fixed Costs: Fixed costs are expenses that remain constant regardless of sales…

Answered: Question: Carter Corporation has fixed…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 13E

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Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
What will the pretax income equal if sales are $400,000 on these financial accounting question?
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Galactica Company has fixed costs of P100,000 and breakeven sales of P800,000. Based on this relationship, what is its projected profit at P1,200,000 sales?
Assume the following cost information for Johnson Company: Selling price $190 per unit Variable costs $80 per unit Total fixed costs $95,000 Tax rate 21% If Johnson Company desires to earn $30,000 net income: What is the target operating income it must earn? Assume the tax rate is 21% How many units must be sold to achieve this target operating income? What amount of sales revenue must be earned to achieve this target operating income?
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1. The following CVP income statements are available for ABC Company and XYZ Company. Sales Variable costs Contribution margin Fixed costs Operating income ABC Company CVP I/S for 2020 $500,000 300,000 200,000 180,000 $ 20,000 XYZ Company CVP I/S for 2020 $500,000 180,000 320,000 300,000 $ 20,000 med m (a) Compute the break-even point in dollars and the margin of safety ratio for each w ww w w w w h m w m ww m company. (b) Compute the degree of operating leverage for each company. (c) Assuming that sales revenue decreases by 20%, each a CVP income statement for w w w w ww w www w w m wm company. (d) Assuming that sales revenue increases by 20%, calculate the operating incomes of the two companies without w w w w ww med m www S WInoul preparing income statement. (Use DOL) nea ww w
The following information is for Corp: Selling price $60 per unit Variable costs $40 per unit Total fixed costs $125,000 If targeted operating income is $50,000 , then targeted sales revenue is how much?
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The selling price per unit?
If the contribution margin ratio solve this question

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Question: Carter Corporation has fixed costs of $1,800,000, and variable costs are 45% of sales. What are the required sales if Carter Corporation desires a net income of $200,000?