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...

See similar textbooks

Similar questions

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.....
Flare Enterprises sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $60 per unit. Flare management desires a 15% profit margin on sales. Their current full cost for the product is $52 per unit. In order to meet the new target cost, how much will the company have to cut costs per unit, if any? a. $3 b. $4 c. $5 d. $1 provide answer to this financial accounting question
ZWYCDL159 Corp. sells a single product. ZWYCDL159 wants to achieve a target income of $105,000 next year. $8 50% Price per unit Contribution margin ratio ID#84756) Annual fixed expenses $155,000 Q.) How many units of the product does ZWYCDL159 have to sell to achieve the target? A.) units
Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Flyer's current full cost for the product is $44 per unit. In order to meet the new target cost, how much will the company have to cut costs per unit, if any? Oa. $1 Ob. $3 Oc. $0 Od. $2
Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Their current full cost for the product is $44 per unit.In order to meet the new target cost, how much will the company have to cut costs per unit, if any? a.$1 b.$2 c.$3 d.$0
Flare Enterprises sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $60 per unit. Flare management desires a 15% profit margin on sales. Their current full cost for the product is $52 per unit. In order to meet the new target cost, how much will the company have to cut costs per unit, if any? a. $3 b. $4 c. $5 d. $1
1. Bramble corp. plans to…
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
Flare Enterprises sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $60 per unit. Flare management desires a 15% profit margin on sales. Their current full cost for the product is $52 per unit. In order to meet the new target cost, how much will the company have to cut costs per unit, if any? a. $3 b. $4 c. $5 d. $1 provide answer
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.

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Entrepreneurial Finance

Finance

ISBN:

9781337635653

Author:

Leach

Publisher:

Cengage

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Entrepreneurial Finance

Finance

ISBN:

9781337635653

Author:

Leach

Publisher:

Cengage

SEE MORE TEXTBOOKS