The company’s current selling price and variable cost per unit is P60 and 36 respectively. If the selling price is reduced by 5%, variable expenses reduced by P1.00, and fixed expenses increased to a total of P38,400, how many units would need to be sold to earn a net operating income of P21,000? 1,000 2,700 1,700 2,950

The company’s current selling price and variable cost per unit is P60 and 36 respectively. If the selling price is reduced by 5%, variable expenses reduced by P1.00, and fixed expenses increased to a total of P38,400, how many units would need to be sold to earn a net operating income of P21,000? 1,000 2,700 1,700 2,950

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

See similar textbooks

Related questions

Q: Sheridan Company has fixed costs of $2300000 and variable costs are 20% of sales. What are the…

A: Total Sales: The total sales are the fixed cost, variable cost, and profit income. here variable…

Q: If the selling price per unit is $50, the variable expense per unit is $20, and total fixed expenses…

A: Contribution margin ratio = Contribution margin / Selling price = ($50 - $20) / $50 = 60%

Q: A company has return on sales of 15% at sales of $400,000. Its fixed cost are $90,000; variable…

A: Solution.. Return on sales = 15% Sales = $400,000 Fixed cost = $90,000 Variable cost = $25 per…

Q: Suppose ABC Corp’s break-even point is revenues of $1,100,000. Fixed costs are $660,000. Calculate…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: A company makes a product with a selling price of $20 per unit and variable costs of $12 12 per…

A: Calculate contribution margin per unit:

Q: Mia Enterprises sells a product for $90 per unit. The variable cost is $40 per unit, while fixed…

A: Break-even point in units is computed by dividing the fixed cost by the contribution margin per…

Q: Variable costs as a percentage of sales for Lemon Inc. are 64%, current sales are $691,000, and…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: If fixed costs are $1,226,000, the unit selling price is $220, and the unit variable costs are $100,…

Q: Ajani Company has variable costs equal to 40% of sales. The company is considering a proposal that…

A: Step 1: Introduction to Cost Volume Profit Analysis:Cost volume profit analysis is used by companies…

Question

1,000
2,700
1,700
2,950

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

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

A company's breakeven sales (BES) is P 600,000. If fixed costs would increase by 10% of this BES, such BES would increase by 40%. a. What is the company's variable cost ratio b. How much is fixed costs of the new BES level?
Currently, a company has fixed costs of P32,500, a contribution ratio of 65%, and is selling its product for P12 per unit. If the sales price per unit is increased by P4, how much less will the break-even point in sales be when compared to the current condition? a.P14,411 b.P13,414 c.P17,500 d.P 5,932
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 a) What is the breakeven point in sales dollars? b) What is the current margin of safety? c) If the company wants to have net income of $70,000, how many units must they sell?
What is the company's CM ratio if the companies can sell more units thereby increase sales by $55,000 per month? And there is no change in fixed expense. By how many would you expect monthly net operating income to increase by? Per unit Total Volume Sales $40.00 608000 Variable cost 28 425600 Contribution margin 12 182400 Fixed expense 156000 Net operating 12 26400
Stellar Company has the following sales, variable cost, and fixed cost. If sales increase by $10,000 then their profit increases/decreases by how much? Sales $50,000 Variable Costs $9600 Fixed Costs $27,000
7. the maximum that they can increase the fixed cost? Company ET 's fixed costs were $40 000, variable costs 60% of sales and profit was $22 000. If variable costs have increased by 10% (of the variable costs) and fixed costs have increased to $44 000, what sales volume does ET now need to make the same profit assuming there is no increase in selling prices?
Beckham Company has the following information available: Selling price per unit: Variable cost per unit: Fixed costs per year: £400,000 Expected sales per year: 20,000 units What is the expected operating income (i.e. profit) for a year? Select one: O A. £500,000 O B. O C. £700,000 £680,000 £100 £55 O D. £480,000
The selling price of a particular product is $81.00 per unit, the variable expense is $55.00 per unit, and the breakeven sales in dollars is $243,000, what are the total fixed expenses?
A company's fixed operating costs are $310,000, its variable costs are $3.65 per unit, and the product's sales price is $4.10. What is the company's break-even point; that is, at what unit sales volume will its income equal its costs? Round your answer to the nearest whole number. units D
Variable expenses are 60% of sales. At a R400 000 sales level, the degree of operating leverage is 5. Determine the profit R Determine the fixed cost R If sales increase by R40 000, determine: the new contribution the new profit the new degree of operating leverage will be (rounded to two decimals)
Spice Inc.'s unit selling price is $53, the unit variable costs are $34, fixed costs are $101,000, and current sales are 9,800 units. How much will operating income change if sales increase by 5,300 units? O a. $100,700 increase O b. $186,200 increase O c. $186,200 decrease O d. $286,900 increase
A company has provided the following data: Sales 2,000 units Sales price $50/unit Variable cost $30/unit Fixed cost $25,000 If the variable cost per unit is decreased by 10%, the total fixed cost is increased by 20%, and all other factors remain the same, what will be the effect on operating income? a) It will decrease by $5,000 b) It will decrease by $1,000 c) It will increase by $6,000 d) It will increase by $1,000