YUX Corporation sells a single product for $40. Its management estimates the following revenues and costs for the year 2020: Net sales Direct materials Direct labour Manufacturing overhead-variable Manufacturing overhead-fixed $ Percent increase in profit % $428,000 112,100 55,400 18,800 13,640 % Selling expenses-variable Selling expenses-fixed % Administrative expenses-variable Administrative expenses-fixed Assuming fixed costs and net sales are spread evenly throughout the year, determine YUX's monthly break-even point in units and dollars. (Round answers to 0 decimal places, e.g. 5,275.) Monthly break-even in units units Monthly break-even in dollars $ $18,600 18,300 Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual profit. (Round answers to 0 decimal places, e.g. 15 or 15%.) Contribution margin ratio Annual margin of safety ratio Annual profit 9,100 9,100 Determine the percentage increase in annual profits if YUX Corporation increases its selling price by 20% and all other factors (including demand) remain constant. (Round answer to 2 decimal places, e.g. 15.25%.) Assume the price remains at $40 per unit and variable costs remain the same per unit, but fixed costs increase by 20% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual profit calculated in
YUX Corporation sells a single product for $40. Its management estimates the following revenues and costs for the year 2020: Net sales Direct materials Direct labour Manufacturing overhead-variable Manufacturing overhead-fixed $ Percent increase in profit % $428,000 112,100 55,400 18,800 13,640 % Selling expenses-variable Selling expenses-fixed % Administrative expenses-variable Administrative expenses-fixed Assuming fixed costs and net sales are spread evenly throughout the year, determine YUX's monthly break-even point in units and dollars. (Round answers to 0 decimal places, e.g. 5,275.) Monthly break-even in units units Monthly break-even in dollars $ $18,600 18,300 Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual profit. (Round answers to 0 decimal places, e.g. 15 or 15%.) Contribution margin ratio Annual margin of safety ratio Annual profit 9,100 9,100 Determine the percentage increase in annual profits if YUX Corporation increases its selling price by 20% and all other factors (including demand) remain constant. (Round answer to 2 decimal places, e.g. 15.25%.) Assume the price remains at $40 per unit and variable costs remain the same per unit, but fixed costs increase by 20% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual profit calculated in
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....
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Transcribed Image Text:YUX Corporation sells a single product for $40. Its management estimates the following revenues and costs for the year
2020:
Net sales
Direct materials
Direct labour
Manufacturing overhead-variable
Manufacturing overhead-fixed
Percent increase in profit
$
%
$428,000
%
112,100
Assuming fixed costs and net sales are spread evenly throughout the year, determine YUX's monthly break-even point in
units and dollars. (Round answers to 0 decimal places, e.g. 5,275.)
Monthly break-even in units
units
Monthly break-even in dollars $
%
55,400
18,800
13,640
Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual profit. (Round answers to 0
decimal places, e.g. 15 or 15%.)
Contribution margin ratio
Annual margin of safety ratio
Annual profit
$18,600
18,300
Administrative expenses-variable 9,100
Administrative expenses-fixed
Selling expenses-variable
Selling expenses-fixed
9,100
Determine the percentage increase in annual profits if YUX Corporation increases its selling price by 20% and all other
factors (including demand) remain constant. (Round answer to 2 decimal places, e.g. 15.25%.)
Assume the price remains at $40 per unit and variable costs remain the same per unit, but fixed costs increase by 20%
annually. Calculate the percentage increase in unit sales required to achieve the same level of annual profit calculated in
part (b). (Round answer to 2 decimal places, e.g. 15.25%.)
Percent increase in unit sales %
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VIEWStep 3: Calculation for break-even sales units and revenue
VIEWStep 4: Calculation for CM ratio, margin of safety ratio and annual profit
VIEWStep 5: Calculation for percentage increase in profits
VIEWStep 6: Calculation for number of units to be sold
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