Please provide this question solution general finance.... Siverquick sells a single product. They want to achieve atarget income of $60,000 next year. How many units ofthe product do they have to sell to achieve the target?Price$20.00Contribution margin ratio 40%Annual fixed expenses$240,000A. 37,500 unitsB. 30,000 unitsC. 25,000 unitsD. 7,500 unitsE. None of the above.

To determine how many units Siverquick needs to sell to achieve a target income of $60,000, we use…

Answered: Siverquick sells a single product. They…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...

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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?
Accounting.....
1. Bramble corp. plans to…
Fill In The Blank Outlast Company's projected profit for the coming year follows: Total Per Unit Sales P200,000 P20 Less: Variable costs (120,000) (12) Contribution margin 80,000 P8 Less Fixed expenses (64,000) Operating Profit P 16,000 Requirements: 1. How many units must be sold to earn a profit of P30,000? units 3. Compute the additional profit that Outlast would earn if sales were P25,000 more than expected? P 3. For the projected level of sales, what is the margin of safety? P 4. Suppose Outlast would like to earn operating income equal to 20 percent of sales revenue. How many units must be sold for this goal to be realized? units NOTE: *If your answer is in monetary value, OMIT the peso sign (ex: if the answer is One hundred pesos just type 100) **If your answer is in thousands value, do not put space/s between the numbers and do not forget to type comma to indicate thousand value (ex: if the answer is one thousand just type 1,000) ***If your answer has decimal places, round your…
6. Dexter Corporation forecast the following units and selling prices: Year 1 Year 2 1,000 $10 1,500 $12 Year 1 $2,000 $5 Year 3 2,000 $15 Unit sales Selling price per unit Please calculate Dexter's projected or proforma sales. 7. Continuing from the prior problem, Dexter has the following fixed cost per year and variable cost per unit each year: Year 2 $2,100 $6 Year 4 3,000 $18 Year 3 $2,200 $8 Year 4 $2,400 $9 Annual fixed costs Variable costs per unit Assuming these are all the costs for Dexter. Please calculate Dexter's projected or proforma profit. 8. Continuing from the prior two problems, if Dexter pays 20% of pretax income (not sales) in taxes to various government authorities, please calculate Dexter's after-tax net income.
REQUIRED Use the information provided below to answer the following questions independently: 3.2.1 If Kempster Limited decides on a profit objective of R400 000, calculate the target sales volume. 3.2.2 Calculate the total Marginal Income and Profit/Loss if the company decides to reduce the selling price to R28 per unit. INFORMATION Kempster Limited expects to incur the following costs to produce and sell 20 000 units of its product at R 30 each: Variable manufacturing cost R14 per unit Fixed manufacturing cost R100 000 Variable marketing cost 20% of sales Fixed marketing and administrative cost R40 000
Breakeven analysis; target income (LO 1, 2) Reid Recreation Products sells the Amazing Foam Frisbee for $12. The variable cost per unit is $3; fixed costs are $36,000 per month. Required a.What is the annual breakeven point in units? In sales dollars? b.How many frisbees must Reid sell to earn $18,000 in operating income? c.What operating income must Reid earn to realize net income of $16,200, assuming that the company is in the 40% tax bracket? d.How many frisbees must Reid sell to earn $16,200 in net income?
Jasmine Incorporated sells a product for $61 per unit. Variable costs per unit are $31, and monthly fixed costs are $252,000. Answer the following questions: Required: a. What is the breakeven point in units? b. What unit sales would be required to earn a target profit of $162,000 ? c. Assuming Jasmine achieves the level of sales required in part b, what is the margin of safety in sales dollars?
Last year Collins Company introduced a new product and sold 20,000 units of it at a price of $50 per unit. The product's variable expenses are $20 per unit and its fixed expenses are $480,000 per year. 1. What is the product's CM ratio? multiple choice 1 a)70% b)55% c)60% d)65% 2. What is the product's break-even point in unit sales? multiple choice 2 a)16,000 units b)17,500 units c)17,000 units d)16,500 units 3. How many units would have to be sold each year to attain a target profit of $270,000? multiple choice 3 a)27,000 units b)24,000 units c)26,000 units d)25,000 units 4. What is the product’s margin of safety in dollars? multiple choice 4 a)$200,000 b)$250,000 c)$150,000 d)$300,000 5. What is the product’s degree of operating leverage at the present level of sales? multiple choice 5 a)6 b)5 c)3 d)4
Ma1. Please give only typed answer.
P Company has provided the following data: Sales Price per unit: $50 Variable Cost per unit: $30 Fixed Cost: $135,000 Expected Sales: 20,000 units a) What is the breakeven point in sales dollars? b) What is the current margin of safety? c) If the company wants to have net income of $70,000, how many units must they sell?
Beckham Company has the following information available: Selling price per unit: Variable cost per unit: Fixed costs per year: £400,000 Expected sales per year: 20,000 units What is the expected operating income (i.e. profit) for a year? Select one: O A. £500,000 O B. O C. £700,000 £680,000 £100 £55 O D. £480,000

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