Homework Answers
Answer:
| 1 | Contribution Margin = Sales - Variable Cost / Sales *100 | |
| Particulars | Amount | |
| Sales Qty | 25000 | |
| Sales price per unit | $ 25.00 | |
| Sales Value | $ 625,000.00 | |
| Less: Variable Cost | ||
| Variable cost per unit | $ 10.00 | |
| Variable Cost | $ 250,000.00 | |
| Contribution = Sales - Variable Cost | $ 375,000.00 | |
| a) | PV Ratio = | 60% |
| Contribution | $ 375,000.00 | |
| Less: Fixed Cost | $ 65,000.00 | |
| Net Operating Profit | $ 310,000.00 | |
| b) | Break-Even Sales | |
| = Fixed Cost / PV Ratio | ||
| Fixed Cost | 65,000.00 | |
| PV Ratio = | 60% | |
| Break-Even Sales | 108,333.33 | |
| Margin of Safety | = Profit / PV Ratio | |
| Profit= | 310,000.00 | |
| c) | Margin of Safety= | 516,666.67 |
| Margin of safety ratio = Actual Sales - Breakeven Sale / Actual sales | ||
| d) | Margin of safety ratio = | 82.67% |
| 2 | The company has reduce the selling price by 13% | |
| then sales price = 25-13% | ||
| Sales Qty | 25000 | |
| Sales price per unit | $ 21.75 | |
| Sales Value | $ 543,750.00 | |
| Less: Variable Cost | ||
| Variable cost per unit | $ 10.00 | |
| Variable Cost | $ 250,000.00 | |
| Contribution = Sales - Variable Cost | $ 293,750.00 | |
| Less: Fixed Cost | $ 65,000.00 | |
| Net Operating Profit | $ 228,750.00 | |
| a) | New PV Ratio = | 54% |
| b) | Break-Even Sales | |
| = Fixed Cost / PV Ratio | ||
| Fixed Cost | 65,000.00 | |
| PV Ratio = | 54% | |
| Break-Even Sales | 120,319.15 | |
| Margin of Safety | = Profit / PV Ratio | |
| Profit= | $ 228,750.00 | |
| c) | Margin of Safety= | 423,430.85 |
| Margin of safety ratio = Actual Sales - Breakeven Sale / Actual sales | ||
| d) | Margin of safety ratio = | 77.87% |
| 3 | Sales to be achieved to get the same amount of profit with the reduced selling price | |
| Profit= | 310,000.00 | |
| Fixed Cost= | 65,000.00 | |
| PV Ratio = | 54% | |
| Sales = | (Profit + Fixed Cost )/ PV Ratio | |
| 694,148.94 | ||
Add Answer to:
5. The following information relates to Sultan LLC for the year 2020 -21. Sales 25,000 units...
Answer the following Questions: 1. Write a brief note on Managerial Accounting (its features , advantages and disadv...
Answer the following Questions: 1. Write a brief note on Managerial Accounting (its features , advantages and disadvantages) Variable Cost 1600 dhs , Fixed Cost-430 dhs. 2. Sales 2800 dhs, What is the contribution and profit? 3. Write a brief note on Cost Volume Profit Analysis. 4. What do you mean by Cost Behaviour? How is it classified? 5. The following information relates to Melco LLC for the year 2017-18. Sales 15,000 units@25 dhs each -375,000 dhs Variable Cost@ 10...
The following information relates to the only product sold by Harper Company. $ 45 Sales price...
The following information relates to the only product sold by Harper Company. $ 45 Sales price per unit Variable cost per unit Fixed costs per year 27 228,000 a. Compute the contribution margin ratio and the dollar sales volume required to break even. b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars). a. Contribution margin ratio Break even sales dollars b. Margin of safety (in dollars)
Break-Even Units and Sales Revenue: Margin of Safety Dupli-Pro Copy Shop provides photocopying service. Next year,...
Break-Even Units and Sales Revenue: Margin of Safety Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 2,900,000 pages at a price of $0.08 each in the coming year. Product costs include: Direct materials $0.012 Direct labor $0.004 Variable overhead $0.002 Total fixed overhead $119,920 There is no variable selling expense; fixed selling and administrative expenses total $45,000. Required: In your computations that involve the contribution margin ratio, do not round the ratio. 1. Calculate the...
Break-Even Units and Sales Revenue: Margin of Safety Dupli-Pro Copy Shop provides photocopying service. Next year,...
Break-Even Units and Sales Revenue: Margin of Safety Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 2,920,000 pages at a price of $0.06 each in the coming year. Product costs include: Direct materials Direct labor Variable overhead Total fixed overhead $0.009 $0.003 $0.001 $87,670 There is no variable selling expense; fixed selling and administrative expenses total $35,000. Required: In your computations that involve the contribution margin ratio, do not round the ratio. 1. Calculate the...
Sultan Ltd plans to manufacture crockery sets and the following information is applicable: Estimated sales for...
Sultan Ltd plans to manufacture crockery sets and the following information is applicable: Estimated sales for the 14 000 units at R80 each 2016 year Estimated costs for the 2016 year Direct material R24 unit per Direct labour R4 per unit Factory overheads (all fixed) R48 000 per annum 30% of sales Selling expenses R78 000 per annum Administrative expenses (all fixed) Required: 3.1 Calculate the break-even quantity. 3.2 Calculate the break-even value using the break - even quantity. 3.3...
The following information relates to the only product sold by Harper Company. Sales price per unit...
The following information relates to the only product sold by Harper Company. Sales price per unit $ 45 Variable cost per unit 27 Fixed costs per year 262,000 a. Compute the contribution margin ratio and the dollar sales volume required to break even. b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars).
The following information relates to the only product sold by Harper Company. Sales price per unit...
The following information relates to the only product sold by Harper Company. Sales price per unit $ 45 Variable cost per unit 27 Fixed costs per year 246,000 a. Compute the contribution margin ratio and the dollar sales volume required to break even. b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars).
Required information The following information applies to the questions displayed below.) Astro Co. sold 20,000 units...
Required information The following information applies to the questions displayed below.) Astro Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for the current year, as shown here. During a planning session for year 2020's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $200,000. The maximum output capacity of...
Cullumber Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,260...
Cullumber Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,260 units Sales price $50 per unit Variable costs $30 per unit Fixed costs $20,340 What is the contribution margin ratio? Contribution margin ratio enter the Contribution margin ratio in percentages % What is the break-even point in dollars? Break-even point $enter the break-even point in dollars What is the margin of safety in dollars and as a ratio? Margin of...
Johnson Company has collected the following information after its first year of sales. Sales were $1,700,000...
Johnson Company has collected the following information after its first year of sales. Sales were $1,700,000 on 85,000 units; selling expenses $250,000 (40% variable and 60% fixed); direct materials $720,800; direct labor $250,000; administrative expenses $270,000 (20% variable and 80% fixed); and manufacturing overhead $336,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10%...
Answer the following Questions: 1. Write a brief note on Managerial Accounting (its features , advantages and disadvantages) Variable Cost 1600 dhs , Fixed Cost-430 dhs. 2. Sales 2800 dhs, What is the contribution and profit? 3. Write a brief note on Cost Volume Profit Analysis. 4. What do you mean by Cost Behaviour? How is it classified? 5. The following information relates to Melco LLC for the year 2017-18. Sales 15,000 units@25 dhs each -375,000 dhs Variable Cost@ 10...
The following information relates to the only product sold by Harper Company. $ 45 Sales price per unit Variable cost per unit Fixed costs per year 27 228,000 a. Compute the contribution margin ratio and the dollar sales volume required to break even. b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars). a. Contribution margin ratio Break even sales dollars b. Margin of safety (in dollars)
Break-Even Units and Sales Revenue: Margin of Safety Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 2,920,000 pages at a price of $0.06 each in the coming year. Product costs include: Direct materials Direct labor Variable overhead Total fixed overhead $0.009 $0.003 $0.001 $87,670 There is no variable selling expense; fixed selling and administrative expenses total $35,000. Required: In your computations that involve the contribution margin ratio, do not round the ratio. 1. Calculate the...
Sultan Ltd plans to manufacture crockery sets and the following information is applicable: Estimated sales for the 14 000 units at R80 each 2016 year Estimated costs for the 2016 year Direct material R24 unit per Direct labour R4 per unit Factory overheads (all fixed) R48 000 per annum 30% of sales Selling expenses R78 000 per annum Administrative expenses (all fixed) Required: 3.1 Calculate the break-even quantity. 3.2 Calculate the break-even value using the break - even quantity. 3.3...
Required information The following information applies to the questions displayed below.) Astro Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for the current year, as shown here. During a planning session for year 2020's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $200,000. The maximum output capacity of...
Most questions answered within 3 hours.
-
In Drosophila, the transition from the syncytial blastoderm
stage to the cellular blastoderm stage is a...
asked 23 minutes ago -
Project management question:
Name 3 different types of resources (hint: humans are one
type)
asked 36 minutes ago -
Consider the following reaction: C 2H 2( g) + 2H 2( g) C 2H 6(
g)...
asked 43 minutes ago -
Consider a 1.0 L buffer containing 0.092 mol L-1 HCOOH and 0.100
mol L-1 HCOO-. What...
asked 52 minutes ago -
Koch Realty has owned a vacant land with a FMV of
$775,000 and an adjusted basis...
asked 58 minutes ago -
It is estimated 29% of all adults in United States invest in
stocks and that 85%...
asked 58 minutes ago -
What does a 2-sided p value of 0.04 mean? (I am not asking if it
is...
asked 1 hour ago -
A parallel-plate capacitor is made from two aluminum-foil
sheets, each 7.8 cmcm wide and 5.1 mmlong....
asked 1 hour ago -
1. why is toluene a stronger nucleophile than benzene?
2.why is phenol a stronger nucleophile than...
asked 1 hour ago -
4. How can you solve for the density of the liquid from the
slope? Please show...
asked 1 hour ago -
when 2053 j of heat is added to 46.3 g of hexane C6H14 the
temperature increases...
asked 1 hour ago -
I need new and unique answers, please. (Use your own words,
don't copy and paste), Please...
asked 1 hour ago