Southampton Electronics manufactures arange of portable heaters. Most of theoutpu is exported. Sales 12, 000 units £25per Selling price unit 40% Contributionmargin ratio Margin of safety percentage30% The variable expense per unit is:0 a£7.50 per unit. O b. £17.50 per unit O c10.00 per unit. O d. £15.00 per unit.

Variable cost is expense that changes in proportion of production or sale. The variable cost per…

Answered: Southampton Electronics manufactures a…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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Southampton Electronics manufactures a range of portable heaters. Most of the output is exported. Sales Selling price Contribution margin ratio Margin of safety percentage The break-even level in sales pounds is: Select one: О А. £210,000 O B. £120,000 O C. £180,000 O D. £84,000 12,000 units £25 per unit 40% 30%
Yellow Dot, Inc. sells a single product for OMR 25. Variable costs are OMR 13 per unit and fixed costs total OMR 120,000 at a volume level of 10,000 units. What level of sales would Yellow Dot have to achieve to earn a target profit of OMR 240,000? Select one: a. OMR 750,000 b. OMR 800,000 c. OMR 30,000 d. OMR 850,000
Sanjay Company has monthly fixed costs of $112.000. The variable costs are $5.00 per unit. The sales price per unit is $20.00 and they sold 8,000 units. Sanjay Company's total sales revenue is A. $120,000 B. $8,C00 C. $112,000 D. $160.000
The Xyden Company sells grips for P6 per unit. Variable costs are P2 per unit. Fixed costs are P37,500. How many grips must be sold to realize a profit before income taxes of 15% of sales? a. 9,375 units b. 9,740 units c. 11,029 units d. 12,097 units
ABD Corporation has the following information about its single product: Selling Price per unit ₱20 Variable Cost per unit ₱ 12 Annual Fixed Costs ₱ 40,000 Expected Units to be sold 6,000 units Calculate the margin of safety and determine the level of profit if sales will decrease by (a) 15% and (b) 18%.
Company XYZ is a car navigation system manufacturer. The company sells each unit for $400. The variable manufacturing cost per unit is $100 while the variable selling and administrative cost per unit is $50. The fixed manufacturing cost is $4,000 while the fixed selling and administrative cost is $6,000. Calculate the number of units needed to achieve an operating profit of $8,000. (round to the nearest number) O a. 33 O b. 40 O C. 51 Od. None of the given answers O e. 72
JLNS Ltd sells three products P, Q and R. The following information is provided P Q R Variable Cost per unit (Rs.) 14 17 13 Selling price per unit (Rs.) 17 21 18 Sales Volume (Units) 10,000 11,000 18,000 Fixed Costs are Rs. 90,000. Calculate the Combined : (a) Profit and (b) Break Even Point.
Kaya Ltd gives the following figures: Margin of Safety 3,75,000 Total Cost 3,87,500 Margin of Safety (Qty.) 15,000 units Break Even Sales in Units 5,000 units You are required to calculate: () Selling price per unit (i) Profit (i) Profit/ Volume Ratio
Company XYZ produces and sells 4,000 units.at this level, the company is making a profit of $10,000. Assuming total ?fixed expenses of $3,000 and variable expenses per unit of $0.75, how much was the selling price per unit 6 .a O 3 b O 8.c O 1 d O 4 e O
Majid Corporation sells a product for $240 per unit. The product's current sales are 41,300 units and its break-even sales are 36,757 units. What is the margin of safety in dollars? Multiple Choice $9,912,000 $6,608,000 $1,090,320 $8,821,680
YZ Manufacturing Company produces two products, Y and Z. The following information is presented for both products: Y Quantity sold 2,500 7,500 Selling price per unit $50 $20 Variable cost per unit 5 20 Total fixed costs are $150,000. What is the breakeven point in units of both Y and Z respectively? NI
Mark Pro produces and sells a single product. Information on its costs follow: Variable costs: SG&A P2 per unit Production P4 per unit Fixed costs: SG&A P12,000 per year Production P15,000 per year 1. Refer to Mark Pro. Assume Mark Pro produced and sold 5,000 units. At this level of activity, it produced a profit of P18,000. What was Mark Pro sales price per unit? 2. Refer to Mark Pro. In the upcoming year, Mark Pro estimates that it will produce and sell 4,000 units. The variable costs per unit and the total fixed costs are expected to be the same as in the current year. However, it anticipates a sales price of P16 per unit. What is Mark Pro 's projected margin of safety for the coming year?

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