You are given the following information in respect of a company: Budgeted output 100, 000 units Selling Price per unit OMR 12.00 Variable Cost per unit OMR 8.00 Total Fixed Costs OMR 40,000 Draw a break-even chart showing the breakeven point. If the selling price is increased to OMR 14 per unit, what will be the new break- even

You are given the following information in respect of a company: Budgeted output 100, 000 units Selling Price per unit OMR 12.00 Variable Cost per unit OMR 8.00 Total Fixed Costs OMR 40,000 Draw a break-even chart showing the breakeven point. If the selling price is increased to OMR 14 per unit, what will be the new break- even

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...

See similar textbooks

Similar questions

You are given the following information in respect of a company:Budgeted output 50, 000 unitsSelling Price per unit OMR 6.00Variable Cost per unit OMR 4.00Total Fixed Costs OMR 20,000Draw a break-even chart showing the breakeven point. If the selling price is increased to OMR 7 per unit, what will be the new break- even point?
Lewis Production Company had the following projected information for the year: Selling price per unit Variable cost per unit Total fixed costs What is the break-even point in units? Select one: O. A. 60,000 units O B. 3,333 units OC. 5,000 units O D. 2,000 units £150 £90 £300,000
Course: Costs and Budgeting If the fixed costs of a company are USD 4,000,000, the unit variable cost is USD 200 and the unit selling price is USD 400.It is asked:(a) What is the break-even point in units and in dollars?b) What is the break-even point in units if the fixed costs double? and if they decrease by half?
Jamie Quinn, a sole proprietor, has the following projected figures for next year: Selling price per unit $150.00 Contribution margin per unit $45.00 Total fixed costs $630,000 What is the break-even point in dollars? a.$2,100,000 b.$426,000 c.$189,000 d.$900,000
You are given the following information in respect of a company:Budgeted output 12, 000 unitsSelling Price per unit OMR 20Variable Cost per unit OMR 15Total Fixed Costs OMR 20,000 Draw a break-even chart showing the breakeven point. If the selling price is reduced to 19 per unit, what will be the new break- even point?
A company wants to price its product by using target ROR method. If the investment isestimated to be 300,000, target ROR = 15 %, expected demand is 43,125 units. What is the targeted price per unit?
A firm estimates that it will sell 100,000 units of its sole product in the coming period. It projects the sales price at P40 per unit, the CM ratio at 70 percent, and profit at P500,000. What is the firm budgeting for fixed costs in the coming period?
The following are data from a production, calculate; The Break-even point in tenns of sales value and in tmit The production demand is at 20,000 units. What is the cw1ent production profit? If the management decides to lower dow11its selling price by 50% given the same demand,will this be a sound decision? Justify. Monthly Fixed Factory Overhead Cost = P600,000 Monthly Fixed Selling Overhead Cost = Pl20,000 Va1iable Manufactw·ing Cost per Unit = P220 Va1iable Selling Cost per Unit = P30 Variable Distribution Cost per Units = P50 Selling Price per tmit = P400
Beckham Company has the following information available: Selling price per unit: Variable cost per unit: Fixed costs per year: £400,000 Expected sales per year: 20,000 units What is the expected operating income (i.e. profit) for a year? Select one: O A. £500,000 O B. O C. £700,000 £680,000 £100 £55 O D. £480,000
Suppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company is estimated to be MC=q+35 MR=560+22q-q^2 Where q is the quantity produced and the firm’s break-even is 5 units per week You are Required to I. determine the total cost and the total revenue function in terms of q. II. estimate the output at which profit is maximize III. calculate the maximum profit
A Company budgets for a production of 150000 units. The variable cost per unit is ¢14 and fixed cost per unit is ¢2 per unit. The company fixes the selling price to fetch a profit of 15% on cost. Required: What is the break- even point? B] What is the profit/volume ratio? C] If the selling price is reduced by 5%, how does the revised selling price affects the Break Even Point and the Profit/Volume Ratio? D] If profit increase of 10% is desired more than the budget, what should be the sales at the reduced price?
If breakeven point is 1,100 units, each unit sells for $32, and fixed costs are $20,000, then on a graph the: