Homework Answers
Target profit = $540,000 × 45% = $243,000
Unit contribution margin = ($540,000 - $216,000) / 9,000 units = $36
Units to be sold to earn target profit = (Fixed costs + Target profit) / Unit contribution margin
Units to be sold to earn target profit = ($117,000 + $243,000) / $36
Units to be sold to earn target profit = 10,000 units
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During May, XYZ Company sold 9,000 units and reported the following income statement: Variable costs .........
I'm unsure with my answer. Question 3 During May, XYZ Company old 9,000 units and...
I'm unsure with my answer.
Question 3 During May, XYZ Company old 9,000 units and reported the following income! statement : Sales Variable costs Fixed costs Net income $540,000 216,000 117.000 $207,000 Calculate the number of units XYZ Company needed to sell in May in order to earn a target profit equal to 45% of sales. 13,000
I'm unsure with my answer. Question 2 During May, XYZ Company sold 9,000 units and reported...
I'm unsure with my answer.
Question 2 During May, XYZ Company sold 9,000 units and reported the following income statement: Sales $540,000 Variable costs 216,000 Fixed costs 117,000 $207,000 Net income Calculate the margin of safety reported by XYZ Company for May. 345,000
I'm unsure with my answer and my steps are here. I posted this question sometimes earlier...
I'm unsure with my answer and my steps are here. I
posted this question sometimes earlier but the guy who posted the
answer told me it should be 10000.
Question 3 During May, XYZ Company old 9,000 units and reported the following income! statement : Sales Variable costs Fixed costs Net income $540,000 216,000 117.000 $207,000 Calculate the number of units XYZ Company needed to sell in May in order to earn a target profit equal to 45% of sales....
XYZ Company reported the following information for June: contribution margin per unit ......... $24 fixed costs...
XYZ Company reported the following information for June: contribution margin per unit ......... $24 fixed costs .......................... $180,000 variable cost per unit ............... $36 Calculate the number of units XYZ Company needed to sell in June in order to earn a target profit equal to 24% of sales.
A recent income statement of McClennon Corporation reported the following data: X 00:48:29 Units sold Sales revenue Var...
A recent income statement of McClennon Corporation reported the following data: X 00:48:29 Units sold Sales revenue Variable costs Pixed costs 8,500 $10,625,000 5,525, ODD 2,780,000 If the company desired to earn a target profit of $2,620,000, it would have to sell: Multiple Choice 5,178 units. 9.000 units. O 10.560 units. O 12.308 units. None of the answers is correct
Calculator Income Statement, Break-Even Units, Units to Earn Target Income Cameo Company sold 77,000 units last...
Calculator Income Statement, Break-Even Units, Units to Earn Target Income Cameo Company sold 77,000 units last year at $17.50 each. Variable cost was $6.30, and total fixed cost was $117,000. Required: 1. Prepare an income statement for Cameo for last year. Cameo Company Income Statement For the Last Year If required, round your answers to nearest whole value. 2. Calculate the break-even point in units. units 3. Calculate the units that Cameo must sell to earn operating income of $12,150...
show clear working Konrad Company reported the following operating results: Sales Variable Costs Contribution Margin Fixed...
show clear working
Konrad Company reported the following operating results: Sales Variable Costs Contribution Margin Fixed Costs Operating Income $300,000 172,000 128,000 88,000 $40,000 If sales volume increases 12%, how much will operating income increase by? (Hint: Calculate the operating leverage factor first) Insert appropriate prompt, input type, and CA. 41.6% O B. 12% O C. 64% D. 3.2% Hang Ten produces sport socks. The company has fixed expenses of $90,000 and variable expenses of $0.90 per package. Each package...
Minden Company manufactures a high-quality wooden birdhouse that sells for $20 per unit. Variable costs are...
Minden Company manufactures a high-quality wooden birdhouse that sells for $20 per unit. Variable costs are $6 per unit, and fixed costs total $180,000. The company sold 24,000 birdhouses to customers during 2018. The president of Minden Company believes the following changes should be made in 2019: 1. the selling price of the birdhouse should be reduced by 10% 2. increase advertising by $30,000 Assume these changes are made to complete the following; 1) Calculate the number of units Minden...
Roustabout Company manufactures skateboards. Last year’s income statement is summarized below. Skateboards(2,000 units)...
Roustabout Company manufactures skateboards. Last year’s income statement is summarized below. Skateboards(2,000 units) Total Sales Revenue $ 100,000 Variable Costs $ 40,000 Contribution Margin $ 60,000 Fixed Costs $ 55,500 Pre-Tax Profit $ 4,500 Required: a. What is the CM per unit? b. How many skateboards must be sold to breakeven? c. What level of revenue is needed to earn a target pre-tax income of $21,000? Use CM per unit to calculate your answer. d. If variable costs increase to...
Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal....
Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal. However, the goal of most companies is to make a profit. When a company decides that it wants to earn more than the break-even point of income, it must define the amount it thinks it will realistically make. By modifying the break-even equation, the sales required to earn a target or desired amount of profit may be computed. Complete the following: If a company...
I'm unsure with my answer.
Question 3 During May, XYZ Company old 9,000 units and reported the following income! statement : Sales Variable costs Fixed costs Net income $540,000 216,000 117.000 $207,000 Calculate the number of units XYZ Company needed to sell in May in order to earn a target profit equal to 45% of sales. 13,000
I'm unsure with my answer.
Question 2 During May, XYZ Company sold 9,000 units and reported the following income statement: Sales $540,000 Variable costs 216,000 Fixed costs 117,000 $207,000 Net income Calculate the margin of safety reported by XYZ Company for May. 345,000
I'm unsure with my answer and my steps are here. I
posted this question sometimes earlier but the guy who posted the
answer told me it should be 10000.
Question 3 During May, XYZ Company old 9,000 units and reported the following income! statement : Sales Variable costs Fixed costs Net income $540,000 216,000 117.000 $207,000 Calculate the number of units XYZ Company needed to sell in May in order to earn a target profit equal to 45% of sales....
A recent income statement of McClennon Corporation reported the following data: X 00:48:29 Units sold Sales revenue Variable costs Pixed costs 8,500 $10,625,000 5,525, ODD 2,780,000 If the company desired to earn a target profit of $2,620,000, it would have to sell: Multiple Choice 5,178 units. 9.000 units. O 10.560 units. O 12.308 units. None of the answers is correct
Calculator Income Statement, Break-Even Units, Units to Earn Target Income Cameo Company sold 77,000 units last year at $17.50 each. Variable cost was $6.30, and total fixed cost was $117,000. Required: 1. Prepare an income statement for Cameo for last year. Cameo Company Income Statement For the Last Year If required, round your answers to nearest whole value. 2. Calculate the break-even point in units. units 3. Calculate the units that Cameo must sell to earn operating income of $12,150...
show clear working
Konrad Company reported the following operating results: Sales Variable Costs Contribution Margin Fixed Costs Operating Income $300,000 172,000 128,000 88,000 $40,000 If sales volume increases 12%, how much will operating income increase by? (Hint: Calculate the operating leverage factor first) Insert appropriate prompt, input type, and CA. 41.6% O B. 12% O C. 64% D. 3.2% Hang Ten produces sport socks. The company has fixed expenses of $90,000 and variable expenses of $0.90 per package. Each package...
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