The Price Company will produce 55,000 widgets next year. Variable costs will equal 40 percent of sales, while fixed costs will total R110,000. At what price must each widget be sold for the company to achieve an EBIT of R95,000?

Q: Network Systems is introducing a new network card. Suppose Network Systems knows its fixed costs are…

A: Breakeven refers to the point at which the original cost equals the market price which is determined…

Q: Swifty Corporation is contemplating the production and sale of a new widget. Projected sales are…

A: 1. PROJECTED SALES :  = $360,000 2. DESIRED PROFIT :  = $45,000 3. TOTAL TARGETED COST :  =…

Q: 2. A new copier company plans to produce one model of copier. The copiers will sell for $820 each.…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: need answer step by step

A: a.IRR = 38.13% b.The IRR rule agrees with the NPV rule.Explanation:Step 1:In excel:a. AB1YearCash…

Q: Your factory has been offered a contract to produce a part for a new printer. The contract would…

A: Step 1:a)We have to calculate the IRR of this project.We will use the IRR function in Excel to…

Q: Roadside Inc's new product would sell for $35.76. Variable cost of production would be $13.48 per…

A: Break-even Sales: Break-even sales means, the company having the sales at the level at which it is…

Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…

A: The point where the total of all the FC of the entity is equal to the contribution, known as…

Q: A manufacturer of plastic traffic cones sells the cones at a wholesale cost of £8 pounds per cone.…

A: Annual profit = Contribution margin - Annual overhead costs where, Contribution margin = (Sales per…

Q: A company is planning a new product. Market research information suggests that the product should…

A: Target costing is the one which estimates the cost of a good by deducting the profit margin from its…

Q: A fixture that cost 800 will save P0.07 per item produce. Maintenance will be at 50 annually. 3600…

A: Answer) Calculation of Payback period   Year  Annual Net cash flow Present Value Factor @…

Q: The purchase price of the machine required to produce a certain part is $ 40000, the maintenance…

A: Breakeven point occurs when there is a situation of no profit no loss exists.

Q: Calculate the lifetime cost per unit and, through the use of target costing, identify any cost gap.…

A: It has been given in the question that any product which is new has be marked up by 35% in order to…

Q: Roadside Inc's new product would sell for $41.78. Variable cost of production would be $11.33 per…

A: Break even point for target profit means the point at which company is recovering its fixed costs…

Q: Chambers Company has just gathered estimates forconducting a breakeven analysis for a new…

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: Your factory has been offered a contract to produce a part for a new printer. The contract would…

A: IRR should be higher than the cost of capital to accept the project because the NPV will be positive…

Q: Your storage firm has been offered $95,400 in one year to store some goods for one year. Assume your…

A: Net present value will be calculated as difference between the present value of future cash inflows…

Q: The ABC Corporation is considering introducing a new product, which will require buying new…

A: Calculation of break even sale in units are as follows, Break even point where revenue  equal to…

Q: 4. Your company is producing 750,000 units a year. All 750,000 units sell for P10 million. If cost…

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

Q: A company manufactures 2,000,000 units of a product yearly. A new design of the product will reduce…

A: Annual Production (in Units) 2000000 Current Material cost per unit P1.50 Total Material Cost…

Q: Hanover Binding plans to produce 40,000 books next year at a total cost of $1,840,000 with a selling…

A: Fixed costs: Fixed costs means cost that are not dependent on the level of production of goods or…

Q: You possess a small manufacturing facility making $2 million annually. Depending on a long-term…

A: Explanation:1. Calculate Decreased Revenue:o Current Revenue = $2 milliono Decrease = 25%o Decreased…

Q: Swifty Corporation is planning to sell 810000 units for $1.50 per unit. The contribution margin…

A: Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with…

Q: A company believes it can sell 5,400,000 of its proposed new optical mouse at a price of $10.50…

A: Cost can be classified into two categories fixed cost and variable cost. The fixed cost remains…

Q: Sandro Aero Inc. produces satellite earth station that sells for RM100,000 each. The firm’s fixed…

A: Given information: Sales RM 100,000 each 50 units of earth stations produced and sold each year,…

Q: Dishman Ltd plans to sell 200,000 items a year for £15 each. Fixed costs are £360,000 a year and…

A: Margin of safety is the difference between the actual sales for the current period and the break…

Q: A company that manufactures cars would use about 50,000 steering wheels per year. Such steering…

A: ECONOMIC ORDER QUANTITY Economic Order Quantity is the size of the order for which both ordering…

Q: uppose a BMW executive in Germany is trying to decide whetherthe company should continue to…

A: The word "direct material" describes the raw materials used directly in the production of a…

Q: Homesaver Ltd believes it can sell 10,000 home smoke detectors per year at Rs30 each. They cost Rs20…

A: NPV concept shall be used for determining the viability of the proposal. NPV is the difference…

Q: A cafe currently offers a cup of cafe latte for P100. The variable costs are P58 per cup, and 10,000…

A: Break even analysis is often use by the firm to analyse the various parameters of sales, Variable…

Q: A factory engaged in manufacturing plastic toys is working at 50% capacity and produces 50,000 toys…

A: Fixed overheads will remain the same at 50%, 70% as well as 80%.

Q: PT Manunggal sells its production during 2022 as many as 15,000 units with a selling price of Rp.…

A: The question is related to Marginal Costing. The profit will be calculated with the help of…

Q: Hit or Miss Sports is introducing a new product this year. If its see-at-night soccer balls are a…

A: To Find: NPV

Q: The fixed costs within a machine shop are $3.4M annually.  The main product this shop produces is…

A: Formula: Net Profit = Revenues - expenses Deduction of expenses from revenues derives the Net…

Q: Hit or Miss Sports is introducing a new product this year. If its see-at-night soccer balls are a…

A: Additional After-Tax Cash Flow = Increase in Production × (Selling Price - Variable Cost) × (1 – tax…

Cost volume profit (CVP) analysis

CVP analysis is a cost-volume-profit technique of cost accounting that examines the influence of varying levels of expenses and volume on operating profit. Cost Volume Profit analysis determines the relationship between Cost, Sale Volume, sales price, and Profit. CVP analysis is also known as break-even analysis which helps the business organization, banks, and their management to determine and forecast how a change in total sales and cost affects the profit of the organization. CVP analysis helps in financial decision-making for the budget, expense, tax, market investment, and corporate finance and aims at measuring variations in cost and volume.