I am searching for the correct answer to this general accounting problem with proper accounting rules. You have been provided with the followinginformation:Per UnitSalesTotal$8Less variable expenses $4Contribution margin $4Less fixed expensesOperating profit$11,000If sales decrease by 400 units, how much willfixed costs have to be reduced to maintain thecurrent operating profit of $11,000?

Step 1: Detailed Explanation of Contribution MarginThe Contribution Margin is the amount remaining…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You have the following data for product X: sales revenue $12,000, variable costs $8,000, allocated fixed costs $2,000. If you drop product X in the long term, total profit will: increase by $2,000 remain the same decrease by $2,000 O increase by $4,000 decrease by $4,000
Find the missing values in the table below with different amount of sales and change in variable expense accordingly. From the given below data find the Contribution ratio. What will be impact on Breakeven if sales increases. Items Current Sales in additional sales in Percentage dollars for 600 dollars with 720 of Sales units units Sales 1,54,000 1,76,000 ? Variable 36,000 10 percent increase ? Expenses in previous expense Contribution ? Margin Fixed Expenses 25,000 25000 Net Income or ? ? ? Los b) Harsha Ltd. Corporation wants to know about the variance in production cost it is noted that mostly variance is related to labor variance. Actual labor hours consumed are 28 hours at the rate of 12 dollars per hour. While standard hours was 41 hours with standard rate of 20 per hour. You are required to find the Labor Efficiency Variance, Labor rate Variance. Interpret your results.
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I only need the awnser for question 3 and 4 CVP & BEP-Example 1 Expected sales Variable costs 10,000 units @ £8 £5 per unit £21,000 Fixed costs Assume Sales volume = No of products produced 1) Calculate Contribution margin per unit. 2) Calculate Break-even point in units? 3) Sales at break-even point? Express the idea of the figure. 4) Prepare Income Statement applying marginal reporting. ( 8
Answer Questions #11,12, and 13 using the information below: Projected Sales: 25,000 Average Sales Price per Unit: $ 56.00 Average Variable Cost per Unit: $ 38.00 Total Fixed Costs: $ $ 342,000 11) Which of the following statements is true? A) Profit in the amount of $108,000 and total costs equal $950,000 B) Loss in the amount of $108,000 and total costs equal $950,000 C) Profit in the amount of $108,000 and total costs equal $1,292,000 D) Loss in the amount of $108,000 and total costs equal $1,292,000 12) Break-even Units equals: A) 6,000 B) 14,000 C) 19,000 D) 22,000 13) If Budgeted Sales were $1,300,000, then the Margin of Safety in dollars is: A) $100,000 B) $236,000 C) $350,000 D) $578,000
Fill In The Blank Outlast Company's projected profit for the coming year follows: Total Per Unit Sales P200,000 P20 Less: Variable costs (120,000) (12) Contribution margin 80,000 P8 Less Fixed expenses (64,000) Operating Profit P 16,000 Requirements: 1. How many units must be sold to earn a profit of P30,000? units 3. Compute the additional profit that Outlast would earn if sales were P25,000 more than expected? P 3. For the projected level of sales, what is the margin of safety? P 4. Suppose Outlast would like to earn operating income equal to 20 percent of sales revenue. How many units must be sold for this goal to be realized? units NOTE: *If your answer is in monetary value, OMIT the peso sign (ex: if the answer is One hundred pesos just type 100) **If your answer is in thousands value, do not put space/s between the numbers and do not forget to type comma to indicate thousand value (ex: if the answer is one thousand just type 1,000) ***If your answer has decimal places, round your…
Use the following data to compute the selling price on these financial accounting
there are still these to answer Draw up a marginal cost statement on the basis that 12,000 units will be sold and calculate the net profit or loss c. Briefly explain what is meant by breakeven points d. Calculate the breakeven units in value and explain what it means to the director e. Calculate the sales activity to reach a target profit of £20,000.
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