REQUIRED Calculate the following from the information provided below: 3.1 3.2 3.3 3.4 3.5 The total Marginal Income and Net Profit/Loss if all 10 000 units are sold. Break even value by using the marginal income ratio Margin of safety (in units) The sales volume required to earn a net profit of R560 000 The total Marginal Income and Net Profit/Loss if all the manufacturing costs increase by 10%. INFORMATION Tafel Limited manufactures tables. The following information was extracted from the budget for the month ended 31 August 2023: Sales Direct materials cost per unit Direct labour cost per unit Variable manufacturing overhead costs per unit Variable selling costs per unit Fixed manufacturing overhead cost Fixed selling and administrative costs 10 000 units at R200 per unit R50 R34 R24 R12 R230 000 R170 000

REQUIRED Calculate the following from the information provided below: 3.1 3.2 3.3 3.4 3.5 The total Marginal Income and Net Profit/Loss if all 10 000 units are sold. Break even value by using the marginal income ratio Margin of safety (in units) The sales volume required to earn a net profit of R560 000 The total Marginal Income and Net Profit/Loss if all the manufacturing costs increase by 10%. INFORMATION Tafel Limited manufactures tables. The following information was extracted from the budget for the month ended 31 August 2023: Sales Direct materials cost per unit Direct labour cost per unit Variable manufacturing overhead costs per unit Variable selling costs per unit Fixed manufacturing overhead cost Fixed selling and administrative costs 10 000 units at R200 per unit R50 R34 R24 R12 R230 000 R170 000

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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Zachary Company reported the following data regarding the product it sells: 11 Sales price Contribution margin ratio Fixed costs 48 25% $336,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $48,0000, what must the sales be in dollars? In units? c. If the sales price increases to $60 and variable costs do not change, what is the new break-even point in dollars? In units? a Break-even point in dollars Break-even point in units b. Sales in dollars Sales in units c Break-even point in dollars Break-even point in units
Your Company sells 3 products, A, B and C that use the same company, facility and resources. Details are below: A Average monthly units sold 10,000 2,000 8,000 Sales price per unit 2,000 1,000 5,000 Variable cost per unit 1,500 500 3,000 Total break even units are 1,000. 1. Calculate: i. Quantity and value of units of each A, B and C at breakeven Fixed cost based on the data given above ii. 2. Without making further calculations, explain that if fixed cost increases by 10% what impact would this have on the break-even point?
Information concerning a product produced by Ender Company appears here: Sales price per unit $ 174 Variable cost per unit $ 76 Total annual fixed manufacturing and operating costs $ 656,600 Required Determine the following: Contribution margin per unit. Number of units that Ender must sell to break even. Sales level in units that Ender must reach to earn a profit of $245,000. Determine the margin of safety in units, sales dollars, and as a percentage.
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Suppose a company has fixed costs of $47,600 and variable cost per unit of ². +222 dollars, where x is the total number of dollars per unit. units produced. Suppose further that the selling price of its product is 1656- (a) Find the break-even points. (Enter your answers as a comma-separated list.) x= (b) Find the maximum revenue. (Round your answer to the nearest cent.) $ (c) Form the profit function P(x) from the cost and revenue functions. P(x) Find maximum profit. (d) What price will maximize the profit? (Round your answer to the nearest cent.)
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Best Windows is a small company that installs windows. Its cost structure is as follows: Selling price from each window installation Variable cost of each window installation Annual fixed costs $ $ $ 160,000 Use (a) the equation method and (b) the contribution method to calculate operating income if Best installs 4,000 windows. Use (a) the Equation method to calculate operating income if Best installs 4,000 windows. Begin by determining the formula to calculate the operating income using the equation method. Then, calculate the operating income. (Abbreviation used: FC = Fixed costs, SP = Selling price, VCU = Variable cost per unit, Q = Quantity of units sold.) X X )-( )-( X X 700 600 X = Operating income = Next, use (b) the contribution method to calculate operating income if Best installs 4,000 windows. Begin by determining the formula to calculate the operating income using the contribution method. Then, calculate the operating income. = Operating income
Finch Corporation produces products that it sells for $20 each. Variable costs per unit are $5, and annual fixed costs are $318,000. Finch desires to earn a profit of $51,000. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. a. Break-even point in units a. Break-even point in dollars b. Sales volume in units b. Sales in dollars Prev 1 of 16 Next >