The following details relate to a shop which currently sells 25,000 pairs of shoes annually. Selling price per pair of shoes @ RM40 Purchase cost per pair of shoes @ RM25 Total annual fixed costs RM Salaries 100,000 Advertising 40,000 Other fixed expenses 100,000 What is the break-even number of pairs of shoes? Select one: O a. 32,000 O b. 16,000 O c. 14,000 O d. 28,000

The following details relate to a shop which currently sells 25,000 pairs of shoes annually. Selling price per pair of shoes @ RM40 Purchase cost per pair of shoes @ RM25 Total annual fixed costs RM Salaries 100,000 Advertising 40,000 Other fixed expenses 100,000 What is the break-even number of pairs of shoes? Select one: O a. 32,000 O b. 16,000 O c. 14,000 O d. 28,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Ava Co. sells custom jewelry for $200. The variable cost per jewel is $160. Ava has fixed operating costs of $4,000. What is Ava's operating breakeven quantity of sales, in units? A. 150 units B. 120 units C. 90 units D. 100 units
help me
Assume Rajan Manufacturing Ltd makes sports vest for local soccer, baseball, basketball, and other sports teams. Rajan, the owner, purchases the vests and prints graphics on the vests for each team. The graphics were designed several years ago, so design costs are no longer incurred. On average, Rajan sells 1,000 vests each month. Typical monthly financial data is shown below: Per Unit Total Monthly Data at 1,000 Vests Sales revenue $20 $20 000 Variable costs: Direct materials $8 $8 000 Direct labour 2 2 000 Manufacturing overhead 3 13 3 000 13 000 Contribution margin $ 7 $ 7 000 Fixed costs (rent, salaries, etc.) 4 000 Profit $ 3 000 The monthly information provided relates to the company’s routine monthly operations. A representative of the local university recently approached Rajan to ask about a one-time special order. The university will be hosting a state-wide soccer event and is willing to pay Rajan’s Manufacturing $17 per shirt to make 200 custom vests for…
A factory sells an item to the wholesalers at a profit of 5%. The wholesaler sells the item to the retailer at a profit of 10%. The retailer sells the item to the public at a profit of 25%. All businesses add VAT of 15%. Required: 2.1 Complete the following table. Factory Wholesaler Retailer Cost Price R 600 ? 5 430,00 ? 3 345,60 ? ? 100,00 ? ? Profit ? ? 2.2 Complete the table below by calculating the missing amounts. Amount (R) VAT (R) 156,80 ? ? VAT ? ? ? 15,68 0 Exempt Selling Price ? ? ? TOTAL (R) ? ? 4058,40 ? ? 74,90 ?
Jenny's Pottery Store is a small retail company that has the following information pertaining to current year operations. Sales (2,500 fruit bowls) Cost of goods sold Manager's salary allocation Rent cost allocation Advertising Commissions (10% of sales) What are the estimated total costs if Jenny's expects to sell 3,000 units next year? A) $86,700 B) $98,700 C) $76,700 D) $88,700 $100,000 45,000 20,000 700 2,000 10,000 E) $84,240
penninsula hardware buys cabinet doors for $24 less 39%, 10% and 4%. the store's overhead expenses are 34% of cost and the required profit is 14% of cost Find the cost= find the expense= find the profit= find the regular selling price=
(c) Jack's Auto manufactures clectric compact cars at $15,000 per unit. The company sells the cars at a price of $45,000 per unit. The fixed cost per month for the company is S120,000. Find the breakeven quantity and revenue.
Using this information below, answer the following question: What is the Net Income required? Total sales amount to $2,000,000 Food generates 75% of total sales Food cost is $500,000 Beverages generated sales of $300,000 with a CMR of 0.85 The gift store generated the remaining sales at a cost of 30% Tax rate is 27% Annual fixed costs total $1,500,000 Group of answer choices $1,080,000 $1,010,000 $1,000,000 $1,090,000
ezto.mheducation.com/ext/map/index.html?_con=con&extern -30 d 1 ok $ int a Print 0 eferences 2 Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 159,000 kilometers during a year, the average operating cost is 12.7 cents per kilometer. If a truck is driven only 106,000 kilometers during a year, the average operating cost increases to 15.8 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form Y = a +bX. 3. If a truck were driven 132,000 kilometers during a year, what total operating cost would you expect to be incurred? Mc Graw Hill (@ 12 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Variable cost Fixed cost Using the high-low method, estimate the variable operating cost per…
Pizza Hut can produce 5000 pizzas per year. The cost of home delivery to the household is RO 25. The cost to prepare the pizza is RO 16 and the holding cost is 25% of the cost. What is the total carrying costs? a. RO 1000 O b. RO 250 O c. RO 500 d. RO 750
A retailer buys an alarm set for RM 850. Operating expenses are 5 % based on cost. The retailer wants a 30% net profit based on the selling price. Find a) the breakeven selling price. b) the retail price. c) the gross profit.
Assume Rajan Manufacturing Ltd makes sports vest for local soccer, baseball, basketball, and other sports teams. Rajan, the owner, purchases the vests and prints graphics on the vests for each team. The graphics were designed several years ago, so design costs are no longer incurred. On average, Rajan sells 1,000 vests each month. Typical monthly financial data is shown below: Per Unit Total Monthly Data at 1,000 Vests Sales revenue $20 $20 000 Variable costs: Direct materials $8 $8 000 Direct labour 2 2 000 Manufacturing overhead 3 13 3 000 13 000 Contribution margin $ 7 $ 7 000 Fixed costs (rent, salaries, etc.) 4 000 Profit $ 3 000 The monthly information provided relates to the company’s routine monthly operations. A representative of the local university recently approached Rajan to ask about a one-time special…