Sinclair Company's product has a selling price of £25 per unit. Last year the company reported a profit of £20,000 and variable expenses totalling £180,000. The product has a 40% contribution margin ratio. Because of competition, Sinclair Company will be forced in thecurrent year to reduce its selling price by £2.00 per unit. How many units must be sold in the current year to earn the same profit as was earned last year?Select one:O A. 15,000 unitsO B. 12,000 unitsO C. 16,500 unitsO D. 12,960 units

Contribution margin is the margin of selling price over the variable cost of production. Selling…

Answered: Sinclair Company's product has a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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D) Nuevo Company manufactures a product which sells for P5. At present, the company produces and sells 50,000 units per year. Unit variable manufacturing and marketing expenses are P2.50 and P.50 respectively. Fixed expenses are P70,000 for tactonY overhead and P30,000 for marketing and administration. The sales manager hos proposed that the price be increased to P6. To maintain the present sales volume. advertising must be increased. The company's profit objective is 10% of sales. 2. Compute the additional expenditure the company can afford for advertising. E) The annuUal FC amounted to P798,000. At present, the contribution margin ratio is 42%. 3. Determine the amount of sales if the desired profit is P173,800 net of the ff. fax rates: For the first P100,000 25% In excess of P100,000 35% F) Bosh Company expects to incur the following costs to produce and sell 70,000 units of its product: Variable manufacturing cost Fixed manufacturing cost Variable marketing expense Fixed marketing…
Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $100 per unit and has a CM ratio of 40% The company's fixed expenses are $459,000 per year. The company plans to sell 12,000 knapsacks this year. Required: 1. What are the variable expenses per unit? Variable expenses per unit 2. Use the equation method for the following e. What is the break-even point in units and in sales dollars? Break-even point in units Break-even point in sales dollars b. What sales level in units and in sales dollars is required to earn an annual profit of $99,000? Sales in units Sales in dollars c. What sales level in units is required to earn an annual after-tax profit of $99,000 if the tax rate is 25%? Sales in units d. Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $5 per unit. What is the company's new break-even point in units and in sales dollars? (Do not round Intermediate calculations.…
Big Chill, Inc. sells portable dehumidifier units at $193. Unit variable costs are $110. Fixed costs are $4,175,000. Management has set a profit objective of 15.1% return on sales. Calculate the sales volume in dollars that will provide a 15.1% return on sales. Round your answer to the nearest dollar .
Rhine Inc. make a single product with a selling price of £35 per unit. Fixed costs are £40,000 and variable costs per unit are £19. Rhine Inc. have a profit target of £15,000. How many units must be produced and sold to achieve that target?
ABC Ltd produces a single product. The selling price is OMR 50 a unit and the variable costs is OMR 30 a unit. The annual fixed costs of the business are OMR 4000. The business aims to make OMR 10000 profit during the forthcoming year. How many units must be sold to achieve this target profit? Select one: a. 200 Units b. None of the options c. 700 Units d. 500 Units
NUBD Co. plans to market a new product. Based on its market studies. It estimates that it can sell 70,000 units in 2021. The selling price per unit is P2.00. Variable cost ratio is 40% of sales. Fixed Costs are estimated to be P60,000. 1. Compute the break even point in units 2. Compute the break even point in sales pesos.
A company operates in a competitive marketplace. They look to the market to determine their selling price. It looks like the market will bear a price of $438. The company has a goal of earning 10% return on sales on each unit. What would their target cost be? Round your answer to the nearest whole dollar.
(b) The cost of materials is expected to rise by 20%, while total fixed costs are expected to rise by RM13,000 per year:Calculate the number of units that must be sold for the company's net profit to be maintained. Assume that the rest of the data is unchanged. Determine a new break-even point and margin of safety in bottles if the selling price change to RM 6 per packet. Assume that all other variables remain constant. please provide calculations for each of them.
xZ Companys single produchas a selling pnce of 525 per unit. Last year the company reported profit of 5200,000 and variable expenses totaling 5960,000. The product has a 40% contribution margin ratio. Because of competition. XYZ Company will be forced in the current year to reduce its selling price by $2 per unit How many units must be sold in the current year to earn the same profit as was earned last year? Select one: Oa.64.000 Oc44000 0000 00 O e.116 000
Dishman Ltd plans to sell 200,000 items a year for £15 each. Fixed costs are £360,000 a year and variable costs are £12 per unit. What is the margin of safety? Select one: a. 66.7% b. 25.0% c. 11.1% d. 40.0%
Kerrigan Ltd makes and sells product A. The current selling price is £11 and the total of variable costs per unit is £6. The fixed costs of production are £350,000 and the company currently sells 75,000 units. Required: (a) Calculate the break-even point (in units and revenues) of product A for Kerrigan Ltd. ] (b) Calculate the profit made on sales of 75,000 units. [] (c) The company will make an advertising campaign costs £10,000 and will improve the product specifications, which will increase the variable cost per unit by £1. This is expected to allow the company to increase the selling price to £13 and the sales is expected to be 80,000 unites. Calculate the new profit figure for the improved product.
D) Brolin Company sells a single product. The product has a selling price of $50 and variable expenses of 80% of sales. If the company's fixed expenses total $150,000 per year, what is the company's break-even point in sales dollars? per unit $750,000 A) $187,500 B) $15,000 C) $3,750 D) Page 2 of 4 O 48°F Sunny re to search

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