Zebu has given the following details for two years: 2019-20 2020-21 Sales 800,000 ? PV Ratio 50% 37.50% MOS as a % of total sales 40% 21.875% Savings in fixed cost in fixed cost in year 2020-21 due to restruturing process. The company maintain its sales quantity level of 2019-20 in 2020-21 by reducing price. Compute: 1. Sales for the year 2020-21 in value, 2. Fixed cost for 2020-21 in value, 3. Break even sales for 2021

Zebu has given the following details for two years: 2019-20 2020-21 Sales 800,000 ? PV Ratio 50% 37.50% MOS as a % of total sales 40% 21.875% Savings in fixed cost in fixed cost in year 2020-21 due to restruturing process. The company maintain its sales quantity level of 2019-20 in 2020-21 by reducing price. Compute: 1. Sales for the year 2020-21 in value, 2. Fixed cost for 2020-21 in value, 3. Break even sales for 2021

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

A7
Question 3: Sohar Company's financial information is given in the table below. Sales (OMR) Fixed Costs 405000 Variable Costs Year 2019 90000 225000 2020 450000 120000 240000 Calculate: a) PV ratio, b) B.E.P. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000.
Exercise 1: Company B has the following information for the year 20XO: Sold units Sales price per unit Unit variable cost Total fixed cost (interest cost of $160,000 included) Operating assets at the beginning of the year Operating assets at the end of the year Requirements: 50,000 $160 $96 1,360,000 $18,000,000 $22,000,000 a. Calculate the ROI for the year. b. Given that the minimum required rate was 8% per year, calculate the RI for the year. c. In 20X1, an improvement is taken in order to save the direct material cost. A saving of $200,000 is achieved. With the other information remains unchanged, calculate the ROI of 20X1.
O e. Sales - variable expenses + profit = fixed expenses For XYZ Company, how many units of their product would have to be sold to yield a target operating income of $210,000 for the financial year ending 2021, assuming variable costs are $50 per unit, total fixed costs are $90,000, and the unit selling price is $65? a. 14,000 units Ob. 6,000 units Oc. 20,000 units O d. 6,000 units OUS PAGE NEXT PAGE 16
The sales and profit for two years are as below: Sales Profit 2019 50000 15000 2020 90000 35000 Calculate Margin of safety at a profit of OMR 30000: Select one: a. OMR 60000 b. OMR 52000 c. OMR 70000 d. OMR 65000
Question 3. Based on the attached picture Calculate the following Break-even value using the contribution margin ratio The increase in operating profit total sales increase by R60000 Margin of safety (in units) Total contribution margin and operating profit (loss), if the selling price increases by 10% and advertising costs increases by R20000
Question 5 ) Answer with Formulas
1.The coffee is sold in individual packets of 300 grams at RM 6.00 each. In developing the company's financial strategy for the year 2022, the company's president has accumulated all data on projected operation as follows: Expected sales volume Variable costs: 300,000 packets per annum RM 2.00 per packet RM 1.00 per packet RM 0.50 per packet RM 150,000 per annum RM 90,000 per annum Cost of coffee Cost of labour Selling and distribution Administrative expenses Other variable expenses Calculate the following: i. Break-even point in packets and sales value ii. Total net profit for the year iii. Contribution per sales ratio
PT. Ganteng Doang analyzing new policies for the company, Below is the company’s information regarding the old and new policies: Current Policy New Policy Price per unit $100 $105 Cost per unit $50 $50 Unit sales per month 4000 4200 Calculate the value of NPV when PT.Ganteng Doang implements this policy with a value of return rate=3,00%!
7
1. Using the Goal Seek Tool find the Net Income breakeven point for both years changing the units sold while price remains fixed at $25.00 2. Using the Goal Seek Tool find the price each year that creates an income 1200 in 2018 and 2019 holding sales at 3500 units 2018 2019 Total Revenue 61436 63644 Cost of Goods Sold 46077 47733 Gross Profit 15359 15911 General & Admin 12,884 13,411 Depreciation 1250 1,250 Rent 650 650 Operating Expenses 14,784 15,311 EBIT 575 600 Interest Expense 575 600 Earnings Before Taxes 0 0 Income Tax Expense 0 0 Net Income 0 0 Units Sold 2,457 2,546 Price 25.00 25.00 Tax Rate 40.0% 40.0% Cost of Good Sold 75.0% 75.0%
Nn1.