Selling Price | $ 2.00 | ||
Variable cost | $ 1.10 | ||
Contribution Margin | $ 0.90 | ||
Fixed Cost | $ 100,000.00 | ||
No. of units needed to sell to earn desired profit | |||
of $ 26000 would be : | |||
(Fixed Cost + Desired profit) / Contribution Margin per unit | |||
= | ($ 100000 + $ 26000) / $ 0.9 | ||
= | 140000 | units |
Ten toes would have to sell 1250 more packages of socks to eard $ 26000 operating income. |
The increase in fixed cost was not completely offset by the decrease in variable costs at the prior |
target profit volume of sales. Therefore, Ten Toes will need to sell more units in order to achieve |
its target profit level. |
Ten Toes produces sport socks. The company has fixed expenses of $85,000 and variable expenses of...
Ten Toes produces sport socks. The company has fixed expenses of $75,000 and variable expenses of $0.75 per package. Each package sells for $1.50. The number of packages Ten Toes needed to sell to earn a $29,000 operating income was 138,667 packages (rounded). If Ten Toes can decrease its variable costs to $0.55 per package by increasing its fixed costs to $90,000, how many packages will it have to sell to generate $29,000 of operating income? Is this more or...
produces sport socks. The company has fixed expenses of $ 110 comma 000$110,000 and variable expenses of $ 1.10$1.10 per package. Each package sells for $ 2.20$2.20. The number of packages Ten ToesTen Toes needed to sell to earn aa $ 27 comma 000$27,000 operating income was 124 comma 546124,546 packages left parenthesis rounded right parenthesis .packages (rounded). If Ten ToesTen Toes can decrease its variable costs to $ 0.90$0.90 per package by increasing its fixed costs to $ 125...
Happy Ten produces sport socks. The company has fixed expenses of $90,000 and variable expenses of $0.90 per package. Each package sells for $1.80. The number of packages Happy Ten needed to sell to earn a $23,000 operating income was 125,556 packages left parenthesis rounded right parenthesis .packages (rounded). If Happy Ten can decrease its variable costs to $0.70 per package by increasing its fixed costs to $105,000, how many packages will it have to sell to generate $23,000 of...
Happy Ten produces sports socks. The company has fixed expenses of $85,000 and variable expenses of $0.85 per package. Each package sells for $1.70. Begin by identifying the formula to compute the contribution margin per package. Then compute the contribution margin per package. 1. Compute the contribution margin per package and the contribution margin ratio. 2. Find the breakeven point in units and in dollars. 3. Find the number of packages Happy Ten needs to sell to earn 25,500 operating...
E7-19A (similar to) Trendy Toes produces sports socks. The company has fixed expenses of $75,000 and variable expenses of $0.75 per package. Each package sells for $1.50. Requirements: 1. Compute the contribution margin per package and the contribution margin ratio. 2. Find the breakeven point in units and dollars. 3. Find the number of packages Trendy Toes needs to sell to earn a $24,000 operating income.
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...
Show All Your Works For Your Response: Fill Out 1 White Blanks Below Socks Unlimited produces sport socks. The company has fixed expenses of $85,000 and variable expenses of $1.20 per package. Each package sells for $2.00. The number of packages Socks Unlimited needed to sell to earn an $22,000 operating income was 133,750 packages. If Socks Unlimited can decrease its variable costs to $1.00 per package by increasing its fixed costs to $100,000, how many packages will it have...
Big Foot produces sports socks. The company has fixed expenses of $110,000 and variable expenses of $1.10 per package. Each package sells for $2.20. Read the requirements compute contribution Begin by identifying the formula to compute the contribution margin per package. The package. (Enter the amount to the nearest cent.) Sales price per unit Variable cost per unit Contribution margin The contribution margin per package is $ 1.10 Compute the contribution margin ratio. (Enter the ratio as a whole percent.)...
Q3. Happy feet buy hiking socks $6 a pair & sells them for $10. Management budgets monthly fixed costs of $ 10,000 for sales volumes between 0 and 12000 pairs. Requirements: (a). Use both the income statement approach and the short cut contribution margin approach to compute the company's monthly breakeven sales in units. (b). Compute the monthly sales level (in units) required to earn a target operating income of $6000. Use either the income statement approach or the shortcut...
Happy Toss Co. produces sports socks. The company has fixed costs of $91,000 and variable costs of S0.81 per package. Each package sells for $1.80. Requirements Compule the contribution margin per package and the contribution margin ralio. (Round your answers to Iwo decimal places.) 2. Find the breakeven point in units and in dollars, using the contribution margin approach. 1. Requirement 1. Compute the contribution margin per package and the contribution margin ratio. Begin by selecting the labels and entering...