Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $100 per unit and has a CM ratio of40%. The company's fixed expenses are $459,000 per year. The company plans to sell 12,000 knapsacks this year.Required:1. What are the variable expenses per unit?Variable expenses per unit2. Use the equation method for the following:a. What is the break-even point in units and in sales dollars?Break-even point in unitsBreak-even point in sales dollarsb. What sales level in units and in sales dollars is required to earn an annual profit of $99,000?Sales in unitsSales in dollarsc. What sales level in units is required to earn an annual after-tax profit of $99,000 if the tax rate is 25%?Sales in unitsd. Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $5 perunit. What is the company's new break-even point in units and in sales dollars? (Do not round intermediate calculations. Round yourfinal answers to the nearest whole number)New break-even point in unitsNew break-even point in sales dollars

The break-even sales are the sales, where business earns no profit no loss during the period. The…

Answered: Super Sales Company is the exclusive…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Can you help me with CVP Drill #14?
Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics: Basic Flash Selling price per watch $ 450 $ 550 Variable cost per watch $ 370 $ 310 Expected sales (watches) per year 75,000 25,000 The total fixed costs per year for the company are $1,632,000. Required: What is the anticipated level of profits for the expected sales volumes? Assuming that the product mix is the same at the break-even point, compute the break-even point in units. If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables?
Sheridan Recreation Products sells the Amazing Foam Frisbee for $19. The variable cost per unit is $6; fixed costs are $26,000 per month. (a) Your Answer Correct Answer Your answer is correct. What is the breakeven point in units? In sales dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars. Round answers to O decimal places, eg. 5,275) The breakeven point The breakeven sales (b) eTextbook and Media Solution $ eTextbook and Media Save for Later 2000 frisbees 38000 How many frisbees must Sheridan sell to earn $39,000 in monthly operating income? (Round answer to O decimal places, eg. 5,275) frisbees Attempts: unlimited Attempts: unlimited Submit Ar (c) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the part above.
There are two competing alternatives in your textile business. A-type Tufting Machine costs $10,000 and B-Type Tufting Machine costs $35,000. A-type Tufting Machine can result in $11,000 labour savings in the first two years and $10,000 in year three. B-type Tufting Machine can result in $20,000 labour savings in the first two years. Assume MARR=8%. and find the difference between the net present worth of these two alternatives using infinite planning horizon with project repeatability. a) None of the answers are correct O b) Between $19,176 and $20,367 c) Between $29,176 and $30,367 d) Between $17,176 and $18,367 e) Between $23,176 and $24,367 f) Between $25,176 and $26,367
Company produces three products with the following information: Selling price per unit Variable cost per unit Machine-hours per unit (MH/unit) Small $17 $8 2 Q) What is the maximum monthly rent the " optimal use of their own machine)? A) $ Product Medium $19 $10 3 Large $26 $12 4 The company has a limit of 14,300 machine-hours available per month and a monthly fixed cost of $11,000. The demand for each of the products is 2,500 units per month. The company's goal is to maximize its profitability. Suppose the Company can rent a machine that will provide an additional 1,360 machine-hours per month. company should be willing to pay for this machine (assuming they've made
Witrox Bhd sells two models of smartphone, the Oppo and the Xiaomi. Oppo RM 60.0 35.0 25.0 Sales price per unit Variable cost per unit Contribution margin per unit Witrox has determined that it would break even at an annual sales volume of 50,000 units, of which 75% would be Oppo. Required: a) What are the contribution margin ratios for each product and the company? b) What is the amount of Witrox's estimated annual fixed costs? Xiaomi RM 85.0 54.0 31.0 c) What is the sales mix? d) Prepare a product line income statement with operating income of RM500,000. Fixed production costs will increase RM45,000 and fixed administrative costs will increase RM22,500 to support the increase in volume.
Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics: Sales price $ 12.00 per case Variable costs 5.50 per case Fixed costs 403,000 per year Assume that the company plans to sell 77,000 units annually. Consider requirements (b), (c), and (d) independently of each other. Required: What will be the operating profit? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? Note: Do not round intermediate calculations. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 10 percent? Note: Do not round intermediate calculations. Suppose that fixed costs for the year are 20 percent lower than projected and variable costs per unit are 20 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? Note: Do not round intermediate…
As the operator of XYZ Fitness gym, you calculate your demand equation to be x = -0 .0 6 p + 8 4 where x is the number of members in the club and p is the annual membership fee you charge per member. Your annual operating costs are a fixed cost of $20,000 per year plus a variable cost of $20 per member. Find the annual revenue function, in terms of p. Find the annual cost function, in terms of p Find a simplified expression for the annual profit function, in terms of p At what price should you set the annual membership fee to obtain the maximum revenue? What is the maximum possible revenue?
type the correct answwer for the ;problem bellow

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