Star corp. plans to sell 200,000 units of product A with a selling price of Rp 2,500 / unit in the 20x9 fiscal year. Profit contribution is estimated at 60% of sales revenue. At the level of sales volume of 100,000 units the company is at break even. Question: a. How much is the fixed cost? b. How much profit or loss on sales is budgeted? c. What is the variable cost per unit? d. What is the sales revenue at break-even?

Star corp. plans to sell 200,000 units of product A with a selling price of Rp 2,500 / unit in the 20x9 fiscal year. Profit contribution is estimated at 60% of sales revenue. At the level of sales volume of 100,000 units the company is at break even. Question: a. How much is the fixed cost? b. How much profit or loss on sales is budgeted? c. What is the variable cost per unit? d. What is the sales revenue at break-even?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The Sales are $98,000. The Variable Costs are $42,000. The Fixed Costs are $21,000. Calculate the…

A: If you have any questions let me know in comment box thankyou for your question.

Q: A company's fixed operating costs are $310,000, its variable costs are $3.65 per unit, and the…

A: Break even is the point at which the revenue generated becomes equal to the total costs. Fixed Cost…

Q: What is the breakeven sales in dollars if : Total sales, $120,000; Total variable cost, $ 48,000;…

A: Contribution margin = Total sales - Total variable cost = 120,000 - 48,000 = $72,000

Q: ,000. d) Calculate the sales revenue required to produce an after tax profit of R20,000 if the tax…

A: Breakeven Point is the point at which the fixed cost equals the contribution margin. The Point at…

Q: A company that produces cameras has fixed costs of $153,000 per annum. The variable costs are 45% of…

A: Profit is amount available after deduction of the fixed cost and variable cost from the sales and is…

Q: A company has a margin of safety of 25%, a contribution r a. What is the break-even point in sales…

A: The margin of safety provides a measure of the financial resilience of a business, as it indicates…

Q: A company that manufactures monitors has fixed costs of $82,000 per annum. The variable costs are…

A: Sales revenue refers to the actual amount of income which is earned by a company or a corporation…

Q: I. What is the break- even point in dollar sales? J. How many units must be sold to achieve a…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: The X Corp income statement resembles the following after 35,000 units were sold in 2020. Sales =…

A: Break-even point indicates a point of sales wither in units or dollars where the company will only…

Q: Stuart Company Stuart Company manufactures a single product. Each unit sells for $15. The firm's…

A: Given, Variable costs per unit: Production $5 SG&A $1 Fixed costs: Production…

Q: A company has provided the following data: Sales 2,000 units Sales price $50/unit Variable cost…

A: Variable costs are costs which changes along with change in sales activity level. Fixed costs do not…

Q: Fronteeth Corp. plans to sell 500,000 units of a product at a price of P19.50 per Fixed costs for…

A: Gross profit = Sales - variable cost (or) profit before tax + fixed costs Given data Sales…

Q: Sundial, Inc., produces two models of sunglasses-AU and NZ. the sunglasses have the following…

A: Contribution means the difference between the selling price and variable cost . Fixed cost when…

Q: Papaya Corporation has the following product information: Sales price $9.00per unit $5.00per unit…

A: Operating income= sales- variable cost-fixed cost

Q: Klamath Company produces a single product. The projected income statement for the coming year is as…

A: Income statement: The income statement shows the company's revenues and expenses earned during the…

Q: A company that manufactures monitors has fixed costs of $82,000 per annum. The variable costs are…

A: Profit = Contribution - Fixed cost Contribution = Profit + Fixed cost Contribution margin + variable…

Q: The selling price of a particular product is $81.00 per unit, the variable expense is $55.00 per…

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…

Question

a. How much is the fixed cost?

b. How much profit or loss on sales is budgeted?

c. What is the variable cost per unit?

d. What is the sales revenue at break-even?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Step by step

Solved in 5 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

Use the information provided below to calculate the following independently: 3.1 Break - even quantity 3.2 Margin of safety (in Rands) 3.3 The selling price per unit that will enable the company to break even 3.4 Total Marginal Income and net Profit/Loss if the sales Volume is 10% less than the budgeted figure. 3.5 The number of units that must be sold to earn a net profit of R811 000, if the selling price increases by R20 per unit and the variable costs increase by 10% Information The following budgeted information was extracted from the budget of Brad Manufacturers: Sales 30000 units Selling price per unit R220 Direct materials cost per unit R30 Direct labour cost per unit R20 Variable manufacturing overheads cost per unit R10 Fixed manufacturing costs R1 800000 Variable cost per unit R40 Fixed marketing and administration costs R600000
Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin is $320,000 while the total fixed costs $80,000. If sales are expected to increase by 40% in the next period, how much would the new profit be ($)? O a. 336,000 O b. 272,000 O c. 304,000 O d. None of the given answers O e. 368,000
A company has set its initial selling price at $28 per unit. Its variable manufacturing costs are $10 per unit produced. Its variable selling and administrative costs are $2 per unit sold. The company’s fixed manufacturing costs are $300,000 per period and its fixed selling and administrative costs are $150,000 per period. The company’s target profit is $200,000 per period. What is the breakeven point in units? What is the breakeven point in dollars? How many units must be sold to achieve the target profit? If the fixed costs increase by 20%, how many units must be sold to achieve the target profit?
Ajani Company has variable costs equal to 40% of sales. The company is considering a proposal that will increase sales by $10,000 and total fixed costs by $6,000. By what amount will net income increase? A. $6,000 B. $4,000 C. $2,000 D. $0
If the selling price per unit is $60, the variable expense per unit is $20, and total fixed expenses are $240,000, what are the breakeven sales in dollars?
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.
The company sales price is $35 per unit. The variable cost of production bowties is $21 per unit. The company expect to have fixed cost of $70000 next year. The company expect to sell 8,800 bowties next year. Assume no tax What is the operating income?
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. d. Determine the margin of safety in dollars. e. If the company wants to have net income of $70,000, how many units must they sell.