The contribution margin ratio is 25% for Crowne Company and the break-even point in sales is $200,000. If Crowne Company's target operating profit is $60,000, sales would have to be: Multiple Choice $260,000. $240,000. $280,000. $440,000.

The contribution margin ratio is 25% for Crowne Company and the break-even point in sales is $200,000. If Crowne Company's target operating profit is $60,000, sales would have to be: Multiple Choice $260,000. $240,000. $280,000. $440,000.

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: a. Imelda Company budgets sales of $850,000, fixed costs of $19,100, and variable costs of $85,000.…

A: SOLUTION: Contribution Margin Ratio: Contribution Margin Analysis is a technique of cost volume…

Q: A firm sells a single product for $10. Its variable cost per unit is $6 and fixed costs are $80. If…

A: Let, no. of units sold = X So, Net Profit = (Sales price - variable cost)*No. of units sold - Fixed…

Q: Assume MIX Incorporated has sales volume of $1,162,000 for two products with May sales and…

A: Total contribution margin = Product A contribution margin + Product B contribution marginAt Break…

Q: Corey Company has a margin of safety percentage of 20%. The break-even point is $260,000 and the…

A: We can calculate the operating profit of Corey Company using the information provided. Here's…

Q: 2. Krueger Ltd. wishes to earn a profit equal to 40% of sales revenue. Its monthly fixed costs are…

A: Break even sales refers to that level of sale where the profit is zero that means the sale is just…

Q: If Kirwan Company, with a break-even point at $527,000 of sales, has actual sales of $850,000, what…

A: The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The margin…

Q: A company has provided the following data: Sales Sales price Variable cost Fixed cost If the dollar…

A: There are two type of costs incurred in the business. One is fixed costs and other is variable…

Q: a. Yountz Company budgets sales of $1,190,000, fixed costs of $50,900, and variable costs of…

A: Income from operations is the difference between contribution margin and fixed costs. Contribution…

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: a. Coastal Company budgets sales of $1,070,000, fixed costs of $55,400, and variable costs of…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Hang Kyuk Company has sales of P 200,000, variable costs of P 100,000 and fixed costs of P 75,000.…

A: Cost-volume-profit analysis: Cost-volume-profit analysis is a technique that is used to determine…

Q: Awtis Corporation has a margin of safety percentage of 25% based on its actual sales. The break-even…

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

Q: he contribution margin ratio is 25% for your company and the break-even point in sales revenue is…

A: Break even sales in dollars = Fixed expense / Contribution Margin Ratio Contribution margin =…

Q: Rooney Company reported the following data regarding the product it sells: Sales price Contribution…

A: Break even point means a situation where the is neither profit nor loss. Sales revenue is sufficient…

Q: Mazoon Company's variable costs are 65% of the selling price and its fixed costs are $80,000. To…

A: As the questions asked have more than 1 question, the first question is answered. If you want the…

Q: If Canace Company, with a break-even point at $522,600 of sales, has actual sales of $670,000, what…

A: Solution:-a Calculation of margin of safety in dollars and as a percentage of sales as follows…

Q: The contribution margin ratio is 25% for Your Company and the break-even point in sales revenue is…

A: Break-even analysis is a technique used widely by production management. It helps to determine the…

Q: The following data apply to Diva Corporation for the year 2006: Total variable cost per unit P3.50…

A: SELLING PRICE : = VARIABLE COST PER UNIT / (SALES % - CONTRIBUTION MARGIN %) = P3.5 / 0.70 = P5

Q: You are required to (i)Determine profit, when sales =200,000 Fixed cost=40,000 BEP=160,000…

A: Breakeven sales * Profit volume ratio =Fixed cost Sales * Profit volume ratio =Fixed cost + Profit

Q: Bargain Company's contribution margin ratio is 15%. If the degree of operating leverage is 12 at the…

A: Formula: Contribution margin amount = Sales amount x Contribution margin ratio

Q: The contribution margin ratio is 25% for Grain company and the break-even point in sales is…

A: The objective of the question is to calculate the sales required to achieve a target net operating…

Q: Data for Hermann Corporation are snown below: Percent Per Unit of Sales $ 65 100% 39 60 $26 40%…

A: CVP analysis, or cost-volume-profit analysis, is a management accounting technique used to analyze…

Q: If Canace Company, with a break-even point at $308,000 of sales, has actual sales of $440,000, what…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: sales price of $250 is required to earn a target profit of $45,000 if fixed costs are $1200,…

A: Profit can be calculated by deductions of fixed cost and variable cost from sales.

Q: XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 10%, by how…

A: Increase in profit = current contribution margin x increase in sales % = 450000 x 10% = $45000

Q: The contribution margin ratio is 25% and contribution margin at break even point is $200,000. What…

A: Formula: Fixed costs = Break even point in sales x Contribution margin ratio Multiplying…

Q: Multiple Cholce $415,000. $56,814. $204,636. $210,364. $153,550.

A: Solution.. Fixed cost = $153,550 Contribution margin ratio = 37% Break even sales revenue = ?

Q: The sale price of the unique product is $30, contribution margin ratio 0% and the fixed expenses of…

A: The series of steps taken to reach a certain profit level is known as profit planning. These…

Q: Data concerning Wislocki Corporation's single product appear below. Percent of Sales 100% 25% 75%…

A: Operating income is revenue less any operating expenses, while net income is operating income less…

Q: The records of Valium Company show a contribution margin ratio of 45%. The company desires to earn a…

A: The target sales revenue is calculated by dividing the target contribution margin by contribution…

Q: Belowis an income statement for NUBD Company P400,000 (120.000) Contribution margin P280,000…

A: The net income is calculated as difference between sales revenue and total costs.

Q: Problem: The Company has Sales of P88,000, a Contribution Margin Ratio of 25%, and Margin of Safety…

A: Cost accounting is one of the important area of accounting. Under this area, all type of costs are…

Q: Hart Company sold 5,000 units for a price of $50 per unit and had the following information:…

A: Introduction: The term "contribution margin" can be applied to any aspect of a business, including…

Q: Idaho Corp. has fixed costs of $20,000 and a contribution margin ratio of 50%. Currently, sales are…

A: Margin of Safety: The margin of safety is a notion in investing that states that investor should…

Q: pany currently sells product A, B and C in equal quantities and at the same selling price per unit.…

A: In the given question, contribution margin of product C is missing but overall contribution margin…

Q: The contribution margin ratio is 25% for Company A and the break-even point in sales is $260,000. If…

A: The break even sales are calculated as fixed cost divided by contribution margin ratio.

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

A: Variable costs on increased sales = Increase in sales x 40% = $10,000 x 40% = $4,000

Q: If Kirwan Company, with a break-even point at $412,500 of sales, has actual sales of $750,000, what…

A: 1) Margin of Safety in dollars is $337,5002) Margin of Safety as a percentage of Sales is 45%b)…

Q: Jessa Company has a 40% contribution margin percentage and fixed costs of P50,000. To earn a 15%…

A: Contribution margin ratio = Contribution margin / Sales where, Contribution margin = Sales -…

Q: c. sells a single product for $13. Variable costs are $3 per unit and fixed costs total $100,000 at…

A: Selling price per unit = $13 Variable cost per unit = $3 Fixed cost = $100,000 Units = 7500 units…

Q: Contribution Margin Ratio a. Matzinger Company budgets sales of $1,150,000, fixed costs of $155,300,…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

Q: If the objective of the firm is to get 25% profit, how many units does the firm need to sell if the…

A: Unit Contribution margin = Unit selling price x Contribution margin ratio

Q: Management anticipates fixed costs of $73,000 and variable costs equal to 47% of sales. What will…

A: In this question has covered the concept of Cost - Volume - Profit Analysis.

Question

The contribution margin ratio is 25% for Crowne Company and the break-even point in sales is $200,000. If Crowne Company's target operating profit is $60,000, sales would have to be:

Multiple Choice

$260,000.
$240,000.
$280,000.
$440,000.

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 by step

Solved in 1 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

The following data apply to McNally Company for last year: Total variable cost per unit $3.50 Contribution margin/sales 30% Break-even sales (present volume) $1,000,000 Mc Nally wants to sell an additional 50,000 units at the same selling price and contribution margin. By how much can fixed costs increase to generate additional profit equal to 10% of the sales value of the additional 50,000 units to be sold? Group of answer choices $57,500 $125,000 $67,500 $50,000
Given breakeven sales in units of 32,000 and a unit contribution margin of $10, how many units must be sold to reach a target operating income of $16,000? 1,600 33,600 30,600 160,000
Problem: The Company has Sales of P88,000, a Contribution Margin Ratio of 25%, and Margin of Safety of P18,000. Required: 1. How much is Sales at Break -even Point?
Diamond, Inc.'s most recent contribution margin income statement shows the following: Sales @ $10 per unit Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss) $160,000 (120,000) $ 40,000 (50,000) $ (10,000) If Diamond, Inc's advertising costs increased by $5,000, by how much would sales have to increase for the company to achieve an operating income of $4,000? a. $56,000 Ob. $42,000 c. $76,000 Od. $18,000
The contribution margin ratio is 20% for Grain Company and the break-even point in sales is $200,000. To obtain a target net operating income of $60,000, sales would have to be: Answer:
The company shows a contribution margin ratio of 25%. The company desires to earn a profit of $15,000 and has fixed costs of $25,000. Determine the sales revenue that would have to be generated in order to earn the desired profit. $340,000 None $240,000 $106,250 $160,000
Diamond, Inc.'s most recent contribution margin income statement shows the following: Sales @ $10 per unit Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss) $160,000 (120,000) $ 40,000 (50,000) $ (10,000) If Diamond, Inc's advertising costs increased by $5,000, by how much would sales have to increase for the company to achieve an operating income of $4,000? a. $56,000 b. $42,000 c. $76,000 Od. $18,000
James Company has a margin of safety percentage of 20%. The break-even point is £200,000 and the variable expenses are 45% of sales. Given this information, the operating profit is: Select one: O A. £27,500 O B. £18,000 O C. £22,500 O D. £22,000
need answer of this question
More-Power Company has projected sales of 75,000 regular sanders and 30,000 mini-sanders for next year. The projected income statement is as follows: Regular Sander Mini-Sander Total Sales $3,000,000 $1,800,000 $4,800,000 Less: Variable expenses 1,800,000 900,000 2,700,000 Contribution margin $1,200,000 $900,000 $2,100,000 Less: Direct fixed expenses 250,000 450,000 700,000 Product margin $950,000 $450,000 $1,400,000 Less: Common fixed expenses 600,000 Operating income $800,000 Required: 1. For each of the following possible sales mixes, calculate operating income: Regular Sander Mini-Sander a. 75,000 37,500 b. 60,000 60,000 c. 30,000 90,000 d. 30,000 60,000 Operating Income a. $_________ b. $______ c. $________ d. $_________ 2. Calculate the break-even units for each product for each of the preceding sales mixes. Round the number of break-even packages to two decimal…
Sinclair Company's product has a selling price of £25 per unit. Last year the company reported a profit of £20,000 and variable expenses totalling £180,000. The product has a 40% contribution margin ratio. Because of competition, Sinclair Company will be forced in the current year to reduce its selling price by £2.00 per unit. How many units must be sold in the current year to earn the same profit as was earned last year? Select one: O A. 15,000 units O B. 12,000 units O C. 16,500 units O D. 12,960 units
xZ Companys single produchas a selling pnce of 525 per unit. Last year the company reported profit of 5200,000 and variable expenses totaling 5960,000. The product has a 40% contribution margin ratio. Because of competition. XYZ Company will be forced in the current year to reduce its selling price by $2 per unit How many units must be sold in the current year to earn the same profit as was earned last year? Select one: Oa.64.000 Oc44000 0000 00 O e.116 000