Problems 18.At a break-even point of 400 units, the variable costs P400 and the fixed costsThe Power Company sells its product at P15.00 per unit. The variable cost isP9.00 per unit. Total fixed cost is P12,000. Current sales amounted to P45,00017.If sales decrease by 500 units, by how much would fixed expenses have to beP9.00 perreduced to maintain the current net income?a. P7,500b. P6,000с. Р3,000d. P2,000were P200. What will the 401st unit sold contribute to profit before tax?a. Pob. PO.60.c. P1.00d. P1.50The statement of comprehensive income for Blanche Company for the currentyear is presented belowSalesVariable costsP 400,000125,000275,000200,000p 75,00019. What is the degree of operating leverage of Blanche CompanyContribution marginFixed costsIncome before taxa.3.67b.1.45с. 5.33d. 1.67The following information pertains to Ellery Company. Budgeted sales -P1,000,000, break even sales - P700,000, budgeted contribution margin -P600,000.20.The margin of safety for the Ellery Company isa. P300,000b. P400.000c. P500,000d. P600,000

Break-even analysis is used in the production department to calculate the units to be sold to…

Answered: The Power Company sells its product at…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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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
2. A company had a loss of P3 per unit when sales were P40,000 units. When sales were P50,000 units, it had a loss of P1.60 per unit. Required: a. Determine the contribution margin per unit. b. Determine fixed costs. c. Determine the break even point in units and in pesos. d. What sales should it earn to make a before-tax profit of 20%?
A certain company sells its product at (45 – 0.08x) pesos per unit. Variable cost per unit is P 25 while fixed cost is P 1,200. a. Find the break-even quantity and revenue b. Find the maximum point c. Find the profit at a sale of 120 units.
XYZ Inc. sells a product for OMR 2.5 per unit. The variable cost is OMR 1.7 per unit, and fixed costs are OMR 1500. Using the Equation method Determine (a) the break-even point in sales if total fixed costs increased to OMR 2500 and, (b) the required sales in units if the company desires a target profit of OMR 3,200 assuming fixed cost remained the same at OMR 1,500.
Q2. Suppose that Nafitol Company has a fixed cost of ETB 35,000 and VC of ETB 1.75 per unit for its products. Let us further consider that selling price is birr 2.7 per unit. Required: A. Write the revenue and the cost equation of the company B. At what level of production output is the company Break-even? C. What is the amount of the revenue when the company produces 300,000 units? D. If the company plans to earn a profit of 7000, what amount of quantity has to be produced?
From the following data, calculate: Fixed Expenses OMR 12000. Break-Even point OMR 20000. (a) P I V Ratio. (b) Profit when sales are OMR 80000 & V.C is OMR 18000. (Variable cost per unit OMR 36) (c) New break-even point if selling price is increased by 20%.
The NUBD Co. Sells Product A for P60 each. Variable costs are P36 per unit. Fixed costs are P375,000. 1. How much sales in units must be reached to realize a Net Income of P102,000 before income taxers? 2. How much sales in units must be reached to realize a Net Income of P97,500 after income taxes. Tax rate is 35%? 3. How much sales in pesos must be reached to realize a Net Income of 15% of sales? Ignore income taxes.
The current sales price is P25 per unit and the current variable cost is P17 per unit. Fixed costs are P40,000. If the sales price is increased by P2, and all other costs remain unchanged, the break-even point in units will: a.increase by 1,000 units b.decrease by 1,000 units c.decrease by 2,000 units d.decrease by 119 units (rounded to nearest unit)
A company manufactures and sells a single product whose selling price is P500 and whose variable expense is P300 per unit. The company’s monthly fixed expense is P120,000. Required:1. Solve for the unit sales that are required to earn a target profit of P80,000. 2. If the company wants to earn a profit of P200,000, how much should be the sales revenue?
what is the Revenue, cost and profit functions for the problem below? Orange Company buys Product A for P15 per units and sells them for P25 per unit. There areno other variable costs. Fixed cost is P6,000. Use the breakeven formula to determine thefollowing:a. Revenue, cost and profit functions.
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
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?

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