Assets= 36,000,000 liabilities 19,000,000 shareholders equity 17,000,000 unit sales forecast 1,500,000 average product sales price 75.00 unit costs of goods sold 55.00 fixed expenses (GSA) 12,500,000
Upsilon outsources it marketing operations to an exclusive sales agent that earns no salary but a 10% flat commission on all sales. The agent does not take a title to Upsilion's products. The agent's commission earning are reported as an operating expense on Upsilon's income state. Upsilon's operating consists only of the fixed op. expenses and the commissions paid to its marketing agent.
1. How many units of product must be sold for Upsilon to break even? And how much sales revenue would the break even level of units sales generate?
2. How many units of product sales and dollars of sales revenue are needed for Upsilon to achieve a 5% return on sales (i.e. before tax profit of margin)?
3. How many units of product sales and dollars of sales revenues are needed for Upsilon to earn a 25% return of equity?
4. Produce here an income statement showing all revenues, cost of sales, gross margin, operation expenses and before tax profit for the upcoming fiscal year.
5. Industry trade reports indicate the following DuPoint of Strategic Profit Model averages for the industrial sector in which Upsilon competes. Before tax profit margin 4% asset turnover 2.25 return of equity 18% Calculate Upsilon's five strategic profit model ratios and describe Upsilon's performance relative to the performance of an average firm inits sector?
Assets= 36,000,000 liabilities 19,000,000 shareholders equity 17,000,000 unit sales forecast 1,500,000 average product sales price 75.00...
If a product has a sales price of $50 per unit and a contribution margin of $15 per unit and the company desires a before tax profit of $180,000, how many additional units over the breakeven amount need to be sold?
Global fusion is a key customer of epsilon and has a forecast that it would purchase 100,000 units of product from epsilon next year. Epsilon budgeted 1 millions in fixed overhead expense to service the global fusion account. The global account was expected to yield these results Unit sales forecast 100,000 Average product sales price $75 Sales revenue $7,500,000 Unite cost of goods sold $55 Fixed expenses GSA $1,000,000 Variable expenses 10% agent commission Global fusion recently notified epsilon that...
Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Total $ 314,000 219,800 Per Unit $ 20 14 $ 6 Contribution margin Fixed expenses 94,200 78,000 Net operating income $ 16, 200 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? units Break-even point in unit sales Break-even point in sales dollars 2. Without resorting to computations, what is the total contribution margin at the...
1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to earn a target profit of $70,800? Use the formula method. 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. 4. Refer to part 3 and now assume that the tax rate is...
Data concerning Wislocki Corporation's single product appear below: Per Unit Percent of Sales Selling price $ 190 100 % Variable expenses 38 20 % Contribution margin $ 152 80 % Fixed expenses are $1,039,000 per month. The company is currently selling 9,800 units per month. Required: The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $13 per unit. In exchange, the sales staff would accept...
Data concerning Wislocki Corporation's single product appear below: Per Unit Percent of Sales Selling price $ 190 100 % Variable expenses 38 20% Contribution margin $ 152 80 % Fixed expenses are $1,039,000 per month. The company is currently selling 9,800 units per month. Required: The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $13 per unit. In exchange, the sales staff would accept an...
Data concerning Wislocki Corporation's single product appear below: Per Unit Percent of Sales Selling price $ 200 100 % Variable expenses 52 26 % Contribution margin $ 148 74 % Fixed expenses are $1,040,000 per month. The company is currently selling 9,900 units per month. Required: The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $14 per unit. In exchange, the sales staff would accept...
Jordan Company produces a single product. The projected income statement for the coming month, based on sales of 20,000 units is: Sales $200,000 Less: Variable costs 140,000 Contribution margin $ 60,000 Less: Fixed costs 45,000 Operating income $ 15,000 Instructions: 1. Compute the unit contribution margin and the number of units that must be sold to break even. Suppose that 3,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per Unit Sales $ 318,000 $ 20 Variable expenses 222,600 14 Contribution margin 95,400 $ 6 Fixed expenses 76,200 Net operating income $ 19,200 . What is the monthly break-even point in unit sales and in dollar sales? Break even point in unit sales ? units Break even point is sales dollars ? 2. Without resorting to computations, what is...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per Unit Sales $ 318,000 $ 20 Variable expenses 222,600 14 Contribution margin 95,400 $ 6 Fixed expenses 76,200 Net operating income $ 19,200 . What is the monthly break-even point in unit sales and in dollar sales? Break even point in unit sales ? units Break even point is sales dollars ? 2. Without resorting to computations, what is...