Unicorn Enterprises produces two strategy games, Mystical Wars and Magical Dragons. The projected income for the coming year, segmented by product line, follows: Wars Dragons Total Sales RM 500,000 RM 800,000 RM 1,300,000 Less: Variable costs 230,000 460,000 690.000 Contribution margin 270,000 340,000 610,000 Less: Direct fixed expenses 120,000 180.000 300,000 Product margin 150,000 160,000 310,000 Less: Common fixed expenses 210,000 Operating income 100,000 The selling prices are RM 10 for Mystical Wars and RM 20 for Magical Dragons. Required: 1. Compute the number of games of each kind that must be sold for Unicorn Enterprises to reach its break-even. 2. Compute the revenue that must be earned to produce a net income of 10% of sales revenue.

Unicorn Enterprises produces two strategy games, Mystical Wars and Magical Dragons. The projected income for the coming year, segmented by product line, follows: Wars Dragons Total Sales RM 500,000 RM 800,000 RM 1,300,000 Less: Variable costs 230,000 460,000 690.000 Contribution margin 270,000 340,000 610,000 Less: Direct fixed expenses 120,000 180.000 300,000 Product margin 150,000 160,000 310,000 Less: Common fixed expenses 210,000 Operating income 100,000 The selling prices are RM 10 for Mystical Wars and RM 20 for Magical Dragons. Required: 1. Compute the number of games of each kind that must be sold for Unicorn Enterprises to reach its break-even. 2. Compute the revenue that must be earned to produce a net income of 10% of sales revenue.

Name: Tutorial Q. 3Unicorn Enterprises produces two strategy games, Mystica
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Tutorial Q. 3Unicorn Enterprises produces two strategy games, Mystical Wars and Magical Dragons. Theprojected income for the coming year, segmented by product line, follows:WarsDragonsTotalSalesRM500,000RM800,000RM1,300,000Less: Variable costs230,00

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

Spruce Enterprises anticipates fixed costs of $25,000. Variable costs and expenses are expected to be 60% of sales. The president has asked you to develop a worksheet to calculate sales needed to break even and sales needed to achieve any desired net income (file name DESNI). Your worksheet should include a Data Section that contains fixed costs, desired net income, and variable costs as a percentage of sales. Assume as initial input for your model that the company wishes to achieve a net income of $10,000.
Cost planning for product life cycle Jin Corporation's plans to have an net income equal to 10% its sales. The corp. estimated that the maximum selling price the market will bear is ₱120 per unit. Kapoy expects to sell 100,000 units, incurs fixed costs of ₱1,500,000. Effective income tax rate is 40% What is the contribution margin and the target variable cost per unit?
Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have the following characteristics: Basic Flash Selling price per watch $ 450 $ 550 Variable cost per watch $ 370 $ 310 Expected sales (watches) per year 75,000 25,000 The total fixed costs per year for the company are $1,632,000. Required: What is the anticipated level of profits for the expected sales volumes? Assuming that the product mix is the same at the break-even point, compute the break-even point in units. If the product sales mix were to change to nine Basic watches for each Flash watch, what would be the new break-even volume for Woodland Wearables?
1.Mr. Jasin expects the company to earn an operating income of RM296,400. Estimatethe number of units that must be sold. 2.
Matikas Division of Shortcuts Company expects the following results for 2007:Unit sales 70,000Unit selling price P 10Unit variable cost P 4Total fixed costs P300,000Total investment P500,000The minimum required ROI is 15 percent, and divisions are evaluated on residual income. A foreign customer has approached Matikas' manager with an offer to buy 10,000 units at P7 each. If Matikas accepts the order, it would not lose any of the 70,000 units at the regular price. Accepting the order would increase fixed costs by P10,000 and investment by P40,000.What is the minimum price that Matikas could accept for the order and still maintain its expected residual income?
ABC Company has made the following projections regarding cost increases: DM will increase by 5%; DL 8%; and 6% for all other costs including fixed costs. The company has the capacity to produce 200,000 units. Consider the following various proposals made by the division managers: a) maintain the current volume and selling price; b) manufacture and sell at capacity and reduce the unit price by ₱2; What is the Operating income of Option A and B?
b) Tara Company produces a single product. The projected income statement for the coming year is as follows: RM1,800,000 Sales (40,000 units @ RM45) Total variable cost 1,044,000 Contribution margin RM 756,000 Total fixed cost 733,320 Operating income RM 22,680 (Note: Round all RM value answers to the nearest dollar. Round contribution margin ratio and degree of operating leverage to two decimal places.) Required: i. Solve the break-even sales value (RM). ii. Solve the margin of safety in sales value (RM). iii. Solve the degree of operating leverage.
Company XYZ is planning to sell 20,000 units at a price of $5 per unit during the month of December. The company has total fixed costs of $60,000. Assume a planned margin of safety of $14,000, what is the breakeven point in ($) value? Select one: O a. 86,000 O b. 46,000 O c. 26,000 O d. 40,000 O e. None of the given answers
A company would like to determine various costs and points to aid them in deciding whether to expand or not. If you are given the following information, compute the required amounts and / or figures.Selling price / unit = P100 Variable cost / unit = P70Annual fixed cost = P500,000 Compute 5. Sales in units to earn a profit of 10% of sales.
B. Consider the following: Total variable costs $200,000 Total fixed costs $150,000 Annual volume of units 500 Average invested capital $400,000 Target Return on investment 20.0% To the nearest tenth, what is the markup percentage required to earn the target return on investments using the cost-plus formula based on total costs?
The peso sales that the division needs in order to reach the 30% ROI target is
Jaime Ltd manufactures and sells a small electric product to order for the computer industry. The estimated selling price and variable costs per unit for next year are as follows: (£ per unit) Selling price 654.00 Variable costs: Direct materials 216.00 Direct labour 108.00 Production overhead 54.00 Selling & distribution overhead 27.00 Jaime Ltd expects to sell 108,000 units next year. Jaime Ltd expects the stock level at the start of the year to be NIL and the stock at the end of the year to be 18,000 units. Information on fixed costs is as follows: Fixed costs: £ Production overhead 1,452,000 Selling & distribution 360,000 Administration overhead 342,000 Question: (b) Using Marginal costing: (i) Calculate the production cost per un (ii) Prepare an income statement for the year.