Tweed Ltd’s budget for the next year shows that it would break-even at sales revenue of £400,000 and fixed costs of £160,000. The sales revenue needed to achieve a profit of £100,000 in the next year would be: a. £500,000 b. £650,000 c. £600,000 d. £466,667

Tweed Ltd’s budget for the next year shows that it would break-even at sales revenue of £400,000 and fixed costs of £160,000. The sales revenue needed to achieve a profit of £100,000 in the next year would be: a. £500,000 b. £650,000 c. £600,000 d. £466,667

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: Required information [The following information applies to the questions displayed below.) Data for…

A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…

Q: The New York division of Ram Co. had the following financial data for 2020: sales $600,000, average…

A: Return on investment means how much net income has been earned on average investment amount.…

Q: KRIS Ltd forecasts the 2019 sale of its single product, COS, to 200,000 units at $120 per unit with…

A: Breakeven is the point where total expenses are equal to total revenue. at this point, there is no…

Q: A business has sales of $3800, a Contribution Margin of 25%, fixed costs of $791.66666666667, and a…

A: In Variable Costing when we deduct variable costs from sales we get…

Q: The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 65 percent of the…

A: Cash outlays:Cash outlays refer to the actual expenditures made by an individual or entity for a…

Q: The manager of Stock Division projects the following for next year: Sales $185,000 Operating income…

A: Residual income = Operating income - Average Operating assets*minimum rate of return

Q: The Sales are $98,000. The Variable Costs are $42,000. The Fixed Costs are $21,000. Calculate the…

A: If you have any questions let me know in comment box thankyou for your question.

Q: For the coming year, Belton Company estimates fixed costs of $60,000, the unit variable cost of $25,…

A: Break-even point: It implies to a level of production at which the business incurs no losses or…

Q: A firm has fixed costs of $74,000 per year, a price per unit of $45 and an accounting break-even…

A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: The break-even point for sales of Luckyme is P200,000 with a contribution margin of 40%. Assuming…

A: Break even sales = P 200,000 Contribution margin = 40% Profit = P 100,000

Q: plitterfield Foods forecasts the following sales and expenses: June July August Sales…

A: To find out the cash flow from operations, the calculations have been shown in the next sheet:

Q: What is the breakeven sales in dollars if : Total sales, $120,000; Total variable cost, $ 48,000;…

A: Contribution margin = Total sales - Total variable cost = 120,000 - 48,000 = $72,000

Q: Use the following information for this question: per unit ratio Sales Revenue $180 Variable Costs…

A: Following is the answer to the given question

Q: The management of Lambda Corporation has received the Notifications following forecast for the…

A: Break even point means where there is no profit no loss.Variable cost means the cost which vary with…

Q: Milton Company's projected profit for the coming year is as follows: Description…

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

Q: During the current year, OutlyTech Corp. expected to sell 24,000 telephone switches. Fixed costs for…

A: Introduction: The margin of safety is an accounting ratio that determines the proportion of sales…

Q: The costs and revenue projections for a new product are estimated. What is the estimated profit at a…

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

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: Petersen Company has a capital budget of $1.0 million. The company wants to maintain a target…

A: To determine the payout ratio for Petersen Company under the residual distribution model, we need to…

Q: Sales Revenue Variable Costs Fixed costs Profit Number of rooms occupied Sales Room Rate Variable…

A: whenever there is case of evaluation to be done it is important to analyse the actual data and…

Q: For the coming year, Cleves Company anticipates a unit selling price of $80, a unit variabie cost of…

A: Formula: Break even sales units = Fixed cost / Unit contribution margin

Q: The Bruin Corporation's purchases from suppliers in a quarter are equal to 70 percent of the next…

A: 1. Payment of AccountsSince the payables period is 60 days, we can assume that Bruin pays for its…

Q: Fronteeth Corp. plans to sell 500,000 units of a product at a price of P19.50 per Fixed costs for…

A: Gross profit = Sales - variable cost (or) profit before tax + fixed costs Given data Sales…

Q: XYZ company expects the following in the next month: sales volume 50,000 units, contribution margin…

A: Degree of operating leverage (DOL): DOL reflects the variable and fixed cost relationship of an…

Q: A company makes a single product and incurs fixed costs of £30,000 per annum. Variable cost per unit…

A: Break-even point: The break-even point refers to a point where the total cost is equal to the total…

Q: Product X generates a contribution to sales ratio of 50%. Fixed costs directly attributable to…

A: We have the following information: Contribution to sales ratio: 50% Fixed Costs: $100,000 Desired…

Q: Answer the following questions using the information below: Kramer Enterprises reports year-end…

A: $582,400Budgeted variable cost= $582,40020X8selling price per units= $960,000/160,000=$6variable…

Q: Your company's average make-up is 90%. The sales per tonne is R4300.It produced 500t during February…

A: Detemination of break even volume::::: Break even volume=Fixed Cost/Contribution margin per…

Q: For the current year ending April 30, MJW Company expects fixed costs of $87,500; a unit variable…

A: Break Even Point - Break Even point is the point where the company recovered its cost. It is the not…

Q: 30 days a month. What is the present value (PV) of the savings if the nominal interest is

A: Present Value is the value of future cash flows at current. As a value increases due to interest,…

Q: Suppose a company has a sale of Rs. 200,000 for the year. The cost structure is given as follows:…

A: Raw material 4931.50 Work in progress 2780.82 Finished goods 6986.30 Debtor 16438.35…

Q: The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 70 percent of the…

A: A cash budget serves as a financial planning instrument that offers an approximation of a company's…

Q: 19. Company XYZ currently produces and sells 40,000 units. At this level, the total contribution…

A: Current net profit Net Profit = Contribution margin - Fixed cost Net Profit =…

Q: You currently have a cash balance of $140,000, receivables of $220,000 and paybables of $90,000.…

A: To proceed with the analysis based on the provided data, let's break down the requirements and…

Q: For the coming year, Belton Company estimates fixed costs of $60,000, the unit variable cost of $25,…

A: As per the guidelines, only one question is allowed to be answered. Please resubmit the remaining…

Q: Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is…

A: New sales = Current sales + Current sales x 10% = $11700,000 + $11700,000 x 10% = $12,870,000 New…

Q: Hong Kong Ltd has provided the following data for the current fiscal period: Sales 5,000 units…

A: ANSWER - Calculation of Existing Operating Profit : Particulars Amount Sales Price Per Unit…

Q: Data about Les department of Les miserable’s company for the year are as follows: A. sales amounted…

A: Sales = s = 880,000 Profit margin = pm = 12% Return on Investment = ROI = 20% minimum required rate…

Q: What will be the new contribution if the sales increase by 20%?

A: Contribution: It is the part of the revenue not spent by variable cost. It is computed by reducing…

Q: The Thakor Corporation's purchases from suppliers in a quarter are equal to 65 percent of the next…

A: Cash outlay refers to the actual payment or expenditure of cash by an individual or a business for a…

Q: the company's sales volume in pounds must be:

A: Operating profit is the income generated by the company through its daily operating activities. The…

Q: Lewis Production Company had the following projected information for the year: Selling price per…

A: Formula: Break even point in units = Fixed cost / (Selling price per unit - variable cost per unit)

Question

Tweed Ltd’s budget for the next year shows that it would break-even at sales revenue of £400,000 and fixed costs of

£160,000. The sales revenue needed to achieve a profit of £100,000 in the next year would be:

a.

£500,000

b.

£650,000

c.

£600,000

d.

£466,667

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 1 calculate the PV ratio

VIEW

Step 2 The sales revenue needed to achieve a profit of £100,000

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

A certain firm has the capacity to produce 650,000 units of product per year. At present, it is operating at 62% capacity. The firm’s annual income is P4,160,000.00. Annual fixed costs are P1,920,000.00 and the variable costs are equal to P3.56 per unit of product. What volume of sales does the firm breakeven?A. P3,354,680 B. P3,534,880 C. P3,155,690 D. P3,254,680
A Company manufactures and sells stationary. Last year, the stationary it sold for £15 each, andthe variable expense was £4.50 per unit. The company needed to sell 20,000 of stationary tobreak even. The operating profit last year was €16,800. The Company anticipations for thecoming year include the following:The selling price per stationary will be £18.00. Variable expenses will increase by one third. Fixedexpenses will increase by 10 per cent. Sales for the coming year are expected to exceed last year's by 1,000 units. If this occurs,sales volume in the coming year will be: A. 22,600 B. 21,960 C. 23,400 D. 21,000
A company requires $1400000 is sales to meet its net income target. Its contribution margin is 50% and fixed costs are $300000. What is the company's target net income?
A company’s sales figure is £250,000 and its margin of safety ratio is 40%. Assuming that the fixed costs, the variable cost per unit and the selling price per unit do not change, the company’s margin of safety for sales of £325,000 will be: a. £175,000 b. £150,000 c. £100,000 d. £70,000
54) For the current year ending April 30, MJW Company expects fixed costs of $70,000, a unit variable cost of $60, and a unit selling price of $95. (a) Compute the anticipated break-even sales (units). (b) Compute the sales (units) required to realize an operating profit of $8,000. (a) (b)
If operating income is P60,000, average operating assets are P240,000, and the minimum required rate of return is 20%, what is the residual income? 50% 25% P12,000 P45,000
2 You currently have a cash balance of $140,000, receivables of $220,000 and payables of $90,000. Average days in receivables is 30 and average days in payables is 42. You typically order 50% of next quarter's predicted sales in raw materials which is your variable cost. Salaries and other related costs typically amount to 20% of your current period sales. Last year's sales were as detailed below by quarter. You expect an increase of 5% year on year on last year's sales. Q1 400,000 02 410,000 Q3 430,000 Create a cashflow prediction by quarter for the next four quarters. Q4 400,000
A company requires $1,700,000 in sales to meet its operating income target. Its contribution margin is 30%, and fixed costs are $300,000. What is the target operating income? Select one: a. $210,000 b. $390,000 c. $110,000 d. $890,000 e. $700,000
For the current year ending October 31, Papadakis Company expects fixed costs of $530,200, a unit variable cost of $46, and a unit selling price of $68. a. Compute the anticipated break-even sales (units). units b. Compute the sales (units) required to realize a target profit of $121,000. units
3. The management of Lambda Corporation has received the following forecast for the next year. Sales revenue $600,000Fixed costs $275,000Variable costs 270,000Total costs 545,000Net income $ 55,000 Capacity is a sales volume of $800,000.a. Computei. the contribution margin ii.the contribution rate. b. Compute the break-even pointi. in dollars; ii. as a percent of capacity. c. Determine the break-even volume in dollars if fixed costs are increased by $40,000, while variable costs are held to 40% of sales.
The MacDonald Corporation’s purchases from suppliers in a quarter are equal to 60 percent of the next quarter’s forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 40 percent of sales, and interest and dividends are $124 per quarter. No capital expenditures are planned. Projected quarterly sales are: Q1 Q2 Q3 Q4 Sales $1,230 $1,380 $1,470 $1,680 Sales for the first quarter of the following year are projected at $1,350. Calculate the company’s cash outlays by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
What would be the total contribution to profit to the company as a whole for 10,000 units transferred to Division B and later sold to outside customers at P21 per unit. A. P20,000 B. P40,000 C. (P20,000) D. P80,000