REQUIRED Use the information provided below to answer the followingquestions independently: 3.2.1 If Kempster Limited decides on a profitobjective of R400 000, calculate the target sales volume. 3.2.2 Calculate thetotal Marginal Income and Profit/Loss if the company decides to reduce theselling price to R28 per unit. INFORMATION Kempster Limited expects toincur the following costs to produce and sell 20 000 units of its product at R30 each: Variable manufacturing cost R14 per unit Fixed manufacturing costR100 000 Variable marketing cost 20% of sales Fixed marketing andadministrative cost R40 000

The income is calculated as the difference between the revenue and expenses. The contribution margin…

Answered: REQUIRED Use the information provided…

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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Salalah Company has the following information: Total Sales (Amount) = OMR 80000 %3D Selling Price per Unit= OMR 20 per unit Break-even point = 3000 units Fixed cost = OMR 15000 What is the correct amount of Total Variable Cost? Select one: O a. OMR 60000 O b. None of the options O c. OMR 65000 O d. OMR 50000
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
Rings company has three product lines A, B and C. The following financial information is available:
Please solve this question X limited has provided the following informationSelling Price Rs. 20 per unit Variable Manufacturing Cost Rs. 11 per unit Variable Selling cost Rs. 3 per unit Fixed Factory Overheads Rs. 5, 40, 000 per year Fixed Selling Cost is Rs. 252, 000 per year You are required to calculate the followings : (1) Break Even point (ii) PV ratio (iii) Number of units that must be sold to earn a profit of Rs. 60,000 per year(iv) Impact of decrease in selling price by 10 percent on Breakeven Point.(v) Impact of increase in selling price by 20% on Break Even point.
Abu Industries developed the following information for the product it sells: Sales price Variable cost of goods sold RM50 per unit RM28 per unit Fixed cost of goods sold Variable selling expense Variable administrative expense Fixed selling expense Fixed administrative expense RM650,000 10% of sales price RM2.00 per unit RM400,000 RM300,000 For the year ended 31 December 2020, Hasanah produced and sold 100,000 units of product. Required: (a) Illustrate a CVP income statement using the contribution margin format for Abu Industries for 2020. (b) Give the FIVE (5) basic components of CVP Analysis.
Question 2: Muscat Company has the following information. OMR Fixed Cost 8750 Break even Sales 16000 a) PV Ratio b) Profit when sales are 20000 c) New BE point if selling price is reduced by %25 Question 3: Sohar Company's financial information is given in the table below. Year Sales (OMR) Fixed Costs Variable Costs 2019 405000 90000 225000 2020 450000 120000 240000 Calculate: a) P/V ratio, b) В.Е.Р. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000.
2. Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The company’s monthly fixed expenses are $22,500. The following names are to be considered when completing this problem: Operating Income Variable Costs Sales Fixed Costs per Unit Selling Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Operating Loss What is the company’s break-even point in units? . Use commas as needed (i.e. 1,234). What is the company’s break-even point in dollars? . Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Using the names listed above, construct a contribution margin income statement for the month of September when they will sell 900 units. Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Maple Enterprises Contribution Margin Income Statement For the Month of September How many units will Maple need to sell in…
A firm sell a single product for $6. Its variable cost per unit is $4 and fixed costs are $50. Ignoring income taxes, the amount of sales revenue needed for $20 profit is Select one: a. $210. b. $150. c. $35. d. $25.
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Mars Company has the following information: Total Fixed cost OMR 25000 Selling price per unit OMR 40 Variable cost per unit OMR 25, What will be the correct amount of Margin of safely at a profit of OMR 12000? Select one: O a. OMR 37000 b. OMR 30000 O c. OMR 19200 O d. OMR 32000

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