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EBIT Sensitivity Stewart Industries sells its finished product for $9.46 per unit. Its fixed operating costs...
EBIT Sensitivity Stewart Industries sells its finished product for $8.71 per unit. Its fixed operating costs...
EBIT Sensitivity Stewart Industries sells its finished product for $8.71 per unit. Its fixed operating costs are $19,700, and the variable operating cost per unit is 54 29. a. Calculate the firm's earnings before interest and taxes (EBIT) for sales of 12,000 units b. Calculate the firm's EBIT for sales of 9,000 and 15.000 units respectively c. Calculate the percentage changes in sales (from the 12,000-unit base level) and associated percentage changes in EBIT for the shifts in sales indicated...
Degree of operating leverage Grey Products has fixed operating costs of $373,000, variable operating costs of...
Degree of operating leverage Grey Products has fixed operating costs of $373,000, variable operating costs of $16.55 per unit, and a selling price of $63.45 per unit. a. Calculate the operating breakeven point in units. b. Calculate the firm's EBIT at 11,000, 13,000, and 15,000 units, respectively. c. With 13,000 units as a base, what are the percentage changes in units sold and EBIT as sales move from the base to the other sales levels used in part (b)? d....
Degree of operating leverage Grey Products has fixed operating costs of $389,000, variable operating costs of...
Degree of operating leverage Grey Products has fixed operating costs of $389,000, variable operating costs of $16.19 per unit, and a selling price of $63.43 per unit. a. Calculate the operating breakeven point in units. b. Calculate the firm's EBIT at 10,000, 12,000, and 14,000 units, respectively. c. With 12,000 units as a base, what are the percentage changes in units sold and EBIT as sales move from the base to the other sales levels used in part (b)? d....
Levin corporation has fixed operating costs of $72,000, variable operating cost of $6.75 per unit, and...
Levin corporation has fixed operating costs of $72,000, variable operating cost of $6.75 per unit, and selling price of $9.75 per unit. (A) Calculate the operating breakeven point in units. (B) Suppose the level of sales in 2017 is 250,000. What is the percentage change in EBIT if the level of sales in 2018 increases by 10%? (Calculate DOL first)
Bonita Industries sells its product for $7100 per unit. Variable costs per unit are: manufacturing, $3000,...
Bonita Industries sells its product for $7100 per unit. Variable costs per unit are: manufacturing, $3000, and selling and administrative, $100. Fixed costs are: $18000 manufacturing overhead, and $24000 selling and administrative. There was no beginning inventory at 1/1/15. Production was 20 units per year in 2015–2017. Sales were 20 units in 2015, 16 units in 2016, and 24 units in 2017. Income under absorption costing for 2016 is
46-49. Wheaten Enterprises, Ine. has fixed operating costs of $150,000, the selling price per unit of...
46-49. Wheaten Enterprises, Ine. has fixed operating costs of $150,000, the selling price per unit of its product is $150, and its variable cost per unit for this product is S110. a. Calculate the firm's operating breakeven point in units b. What is the firm's breakeven point in sales dollars?
#11. (10%) Moreau Industries produces a single product, which sells for $60 per unit. Its variable...
#11. (10%) Moreau Industries produces a single product, which sells for $60 per unit. Its variable operating costs are $30 per unit, and its fixed operating costs are $2.1 million. Calculate Moreau's profit for 80,000 units. Calculate the break-even volume.
Ozark Metal Co. makes a single product that sells for $42 per unit. Variable costs are...
Ozark Metal Co. makes a single product that sells for $42 per unit. Variable costs are $27.30 per unit, and fixed costs total $65,415 per month. a. Calculate the number of units that must be sold each month for the firm to break even b. Assume current sales are $272,000. Calculate the margin of safety and the margin of safety ratio. c. Calculate the operating income if 5,000 units are sold in a month. d. Calculate operating income if the...
To be profitable, a firm has recover its costs. These costs include both its fixed and...
To be profitable, a firm has recover its costs. These costs include both its fixed and its variable costs. One way that a firm evaluates at what stage it would recover the invested costs is to calculate how many units or how much in dollar sales is necessary for the firm to earn a profit. Consider the case of Blue Mouse Manufacturers: Blue Mouse Manufacturers is considering a project that will have fixed costs of $12,000,000. The product will be...
Cantor Products sells a product for $86. Variable costs per unit are $46, and monthly fixed...
Cantor Products sells a product for $86. Variable costs per unit are $46, and monthly fixed costs are $120,000. a. What is the break-even point in units? Break-Even Point 2,609 units b. What unit sales would be required to earn a target profit of $328,000? Total Required Sales units c. Assume they achieve the level of sales required in part b, what is the degree of operating leverage? (Round your answer to 3 decimal places.) Degree of Operating Leverage d....
EBIT Sensitivity Stewart Industries sells its finished product for $8.71 per unit. Its fixed operating costs are $19,700, and the variable operating cost per unit is 54 29. a. Calculate the firm's earnings before interest and taxes (EBIT) for sales of 12,000 units b. Calculate the firm's EBIT for sales of 9,000 and 15.000 units respectively c. Calculate the percentage changes in sales (from the 12,000-unit base level) and associated percentage changes in EBIT for the shifts in sales indicated...
Degree of operating leverage Grey Products has fixed operating costs of $373,000, variable operating costs of $16.55 per unit, and a selling price of $63.45 per unit. a. Calculate the operating breakeven point in units. b. Calculate the firm's EBIT at 11,000, 13,000, and 15,000 units, respectively. c. With 13,000 units as a base, what are the percentage changes in units sold and EBIT as sales move from the base to the other sales levels used in part (b)? d....
Degree of operating leverage Grey Products has fixed operating costs of $389,000, variable operating costs of $16.19 per unit, and a selling price of $63.43 per unit. a. Calculate the operating breakeven point in units. b. Calculate the firm's EBIT at 10,000, 12,000, and 14,000 units, respectively. c. With 12,000 units as a base, what are the percentage changes in units sold and EBIT as sales move from the base to the other sales levels used in part (b)? d....
46-49. Wheaten Enterprises, Ine. has fixed operating costs of $150,000, the selling price per unit of its product is $150, and its variable cost per unit for this product is S110. a. Calculate the firm's operating breakeven point in units b. What is the firm's breakeven point in sales dollars?
#11. (10%) Moreau Industries produces a single product, which sells for $60 per unit. Its variable operating costs are $30 per unit, and its fixed operating costs are $2.1 million. Calculate Moreau's profit for 80,000 units. Calculate the break-even volume.
To be profitable, a firm has recover its costs. These costs include both its fixed and its variable costs. One way that a firm evaluates at what stage it would recover the invested costs is to calculate how many units or how much in dollar sales is necessary for the firm to earn a profit. Consider the case of Blue Mouse Manufacturers: Blue Mouse Manufacturers is considering a project that will have fixed costs of $12,000,000. The product will be...
Cantor Products sells a product for $86. Variable costs per unit are $46, and monthly fixed costs are $120,000. a. What is the break-even point in units? Break-Even Point 2,609 units b. What unit sales would be required to earn a target profit of $328,000? Total Required Sales units c. Assume they achieve the level of sales required in part b, what is the degree of operating leverage? (Round your answer to 3 decimal places.) Degree of Operating Leverage d....
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