Southampton Electronics manufactures a range of portable heaters. Most of the output is exported.SalesSelling priceContribution margin ratioMargin of safety percentageThe break-even level in sales pounds is:Select one:О А. £210,000O B. £120,000O C. £180,000O D. £84,00012,000 units£25 per unit40%30%

The total units sold are 12,000 The selling price is 25 per unit The contribution margin ratio is…

Answered: Southampton Electronics manufactures 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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We sell two products: Product #1 Product #2 Total Sales $200,000 $400,000 $600,000| Variable Expenses 120,000 350,000 470,000 Contribution Margin 80,000 50,000 130,000 CM Ratio 40% 12.5% 21.67% Fixed Expenses total $30,000. What is the breakeven point based on the current sales mix? A. $600,000 B. $75,000 C. $138,440 D. $240,000 4.
ABC 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 Compute the target sales level (in units and in peso) for the following target profit: 1. Before tax profit of ₱20,000 2. After tax profit of ₱18,000 if the tax rate is 40%
q3
Crane Industries sells two electrical components with the following characteristics. Fixed costs for the company are $700,000 per year. XL-709 CD-918 $31 23 Sales price $17 Variable cost 12 Sales volume86,800 units217,000 units How many units of EACH product must Crane Industries sell in order to break even?
Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 60,000 Net operating income $ 120,000 If the company decides to pay a sales commission of 2.5% for each unit sold above the break-even point, what net operating income will it earn if it sells 4,600 units? Multiple Choice $50,800 $45,800 $50,400 $48,300
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.
A business in Nigeria has the following information. What is their break even in units for the period? Sales £10 Variable costs: Materials cost £2.5 Labour cost £2.5 Fixed costs: Advertisement £10,000 A. 3500 B. 7000 C. 4000 D. 2000
If cost of sales is $100,000 and the margin is 20% , what is the amount for sales? a. $20,000 b. $120,000 c. $125,000 d. $150,000 The Rocky Point Fishers is a trader in Sea Foods. The firm operates with a standard margin from sales of 1/3. What would be the mark up? a. 1 / 2 b. 1 / 4 c. 2 / 3 d. 3 / 1
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 variable expense per unit is: Select one: O A. £10.00 per unit O B. £17.50 per unit O C. £7.50 per unit O D. £15.00 per unit 12,000 units £25 per unit 40% 30%
Using this information, what is Your Company's expected total contribution margin when 5,000 units are sold? Expected sales in units 5,000 Sales price per unit $20 Margin of safety in units 3,750 Expected Breakeven Contribution margin ratio 35% $35,000 $48,750 $65,000 $26,250
Naumann Corporation produces and sells a single product. Data concerning that product appear below: Percent of Sales 100% 18% 82% Selling price Variable expenses Contribution margin Per Unit $ 200 36 $164 Fixed expenses are $130,000 per month. The company is currently selling 1,200 units per month. Required: Management is considering using a new component that would increase the unit variable cost by $46. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected? Note: Negative amounts should be indicated by a minus sign. Change in net operating income
None

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