The Doll House, a very profitable company, plans to introduce a new type of doll to its product line. The sales price and costs for the new dolls are as followsS10068$$456,00030%Selling price per dollVariable cost per dollIncremental annuel fixed costsIncome tax rateIf 10,000 new dolls are produced and sold, the effect on Doll House's profit (loss) would beMutiple ChoiceO$76.000$56.000)$09.2001$280.000

The income tax benefit is a ledger that shows when a company incurred a loss during the period.…

Answered: The Doll House, a very profitable…

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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Study the information given below and answer each of the following questions independently:Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. Use the marginal income ratio to calculate the break-even value.Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expenseby R100 000 is expected to increase sales by 400 units.How many units must be sold if the company wishes to earn a net profit of R298 920.Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressedin rands and cents) that will enable the company to break even.
Max's Brakes is introducing a new revolutionary brake-pad for vehicles that will never wear out. Max's will sell the pads for $100 a pair and they will cost $80 in variable costs to produce. If cash fixed expenses are $1,500 per year and the depreciation and amortisation expenses are $600 per year, then what is the Accounting Operating Profit Break-Even point for Max's? a. 8 pairs b. 21 pairs c. 75 pairs d. 105 pairs
Clockmaker Ltd. makes a product called wallet. Managers from Clockmaker Ltd. want to achieve a profit of £82, 800. The wallet price equals £82 per unit. Each unit of wallet has a cost of £36 and annual total fixed costs equal £147, 200. Considering this information, which of the following statements is true? O a. To achieve the desired profit, Clockmaker Ltd. needs to sell 5, 000 units of wallet. O b. Clockmaker Ltd. would need to sell more than 3, 200 units of wallet to have positive profits. O c. Contribution per unit equals £46. O d. All the answers are true.
Current Attempt in Progress Your answer is partially correct. Cullumber Company incurs a cost of $35 per unit, of which $19 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 5,600 units at $30 each. Cullumber will incur additional costs of $1 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Cullumber will realize by accepting the special order, assuming Cullumber has sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs $ Net income $ Reject $ $ Should Cullumber Company accept the special order? Cullumber company should accept V the special order. Accept 168000 112000 i 56000 $ $ Net Income Increase (Decrease) 168000 112000 56000
How many units would NUBD Company need to sell to earn a profit after taxes of P15,000?
1. Bramble corp. plans to…
Nictus Limited produces electrical blankets. The blankets are sold for R 750 per unit and variable costs per unit are R350. Total fixed costs amount to R 500 000. The company expects to produce and sell 3000 units. Total net profit is: A. R1 200000 B. R700000 C. R500000 D. R2 250000 Clear my - choice
Marigold Corp.wants to produce and sell a new flavored water. In order to penetrate the market, the product will have to sell at $2 per 12 oz. bottle. The following data has been collected: Annual sales Projected selling and administrative costs Desired profit The target cost per bottle is O $0.16. O $0.20. $0.80. O $0.64. 55000 bottles $8900 $66000
REQUIRED Answer each of the following questions independently. As far as possible use the expanded contribution margin model to present your answers. Suppose an additional R300 000 is spent on advertising in order to increase the sales by 3 000 Calculate the number of pallets that need to be produced and sold to break even. Suppose the management team of Lomax Ltd is considering a R30 per pallet decrease in the selling price with the expectation that this would increase the sales volume by 10%. Is this a good idea? Motivate your answer with the relevant calculations. Determine the selling price per pallet that will enable Lomax Ltd to achieve an operating profit of R3 192 000. INFORMATION Lomax Ltd…
5. Nowitzki Corporation sells sets of encyclopedias. Nowitzki sold 4,000 sets last year at ₱25,000 a set. The variable cost per set was ₱17,500 and the fixed costs for Nowitzki were ₱10,000,000. If the Nowitzki’s sales increase by 20%, its net operating income should increase by about.. Show solution Group of answer choices 30.00% 13.33% 60.00% 06.67%
1. What is the margin of safety in peso value? 2. What is the margin of safety in units? 3. If the company wishes to increase its total peso value contribution margin by 40% in 2021, by how much will it need to increase its sales if all other factors remain constant?
LG produce refrigerators for consumer use. Each refrigerator cost LG RO250 and they sell each with RO400. The company pay a fixed cost 300000 every year. They also have a profit target of 40000 after tax and a profit target of 25000 pre-tax. The tax rate for the year is 40%. What will be the sales revenue to breakeven: Select one: O a. RO 600000 O b. RO 300000 O c. RO 800000 O d. RO 400000

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