No | Particulars | Formula | Answer | Computation | ||
1 | Break Even Units = | Fixed cost / Contribution margin per unit | 66,461.00 | Units | (944,416/14.21) | |
2 | Required unit = | (Profit + Fixed Cost) / Contribution margin per unit | 83,351.00 | Units | ((2,40,000+9,44,416)/14.21) | |
3 | Contribution margin ratio = | Contribution margin per unit / Sales per unit | 0.58 | (14.21/24.5) | ||
58% | ||||||
Additional profit = | Additional Sales * Contibution margin ratio | $ | 92,800.00 | (1,60,000*58%) | ||
Note: | ||||||
Fixed cost remains fixed even if additional units producesd.So increase in contribution is equal to increase in profit. | ||||||
4 | Margin of safety(units) = | Sales units - Breakeven units | 21,789.00 | Units | ((2,162,125/24.5) - 66461) | |
Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $2,162,125...
Break-E Khumbu Company's projected profit for the coming year is as follows: Total Per Unit $41.00 10.66 $ 30.34 Sales $1,834,750 477,035 $ 1,357,715 424,561 $933,154 Total variable cost Contribution m argirn Total fixed cost Operating income Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. units 2. How many units must be sold to earn a profit of $240,0007 If required, round your answer to nearest whole value. units 3. Compute...
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $1,275,000 $25.50 Total variable cost 459,000 9.18 Contribution margin $ 816,000 $ 16.32 Total fixed cost 518,670 Operating income $ 297,330 Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. units 2. How many units must be sold to earn a profit of $240,000? If required, round your answer...
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as follows: Total Per Unit $26.50 $1,344,875 Sales 9.01 457,258 Total variable cost $ 17.49 $ 887,617 Contribution margin 434,395 Total fixed cost $ 453,222 Operating Income Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. units 2. How many units must be sold to earn a profit of $240,0007 If required, round your answer...
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Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $1,275,000 $25.00 Total variable cost 561,000 11.00 Contribution margin $ 714,000 $ 14 Total fixed cost 538,560 Operating income $ 175,440 Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. units 2. How many units must be sold to earn a profit of $240,000? If required,...
ACC 2302
1. Ex.4-38.Algo Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as follows: 2. Ex.4-39.Algo Total Per Unit 3. Pr.4-40.Algo Sales $43.00 $2,730,500 1,146,810 Total variable cost 18.06 Contribution margin $ 1,583,690 $ 24.94 Total fixed cost 1,169,746 Operating income $ 413,944 Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. units 2. How many units must be sold to earn a...
Martin Company's projected profit for the coming year is as follows: Total Per Unit Sales $300,000 $30 Total Variable Cost 200,000 20 Contribution Margin $100,000 $10 Total Fixed Cost 80,000 Operating Income $20,000 Compute the variable cost ratio (round to 4 decimal places). Compute the contribution margin ratio (round to 4 decimal places). Compute the break-even point in units. Compute the break-even point in sales dollars. How many units must be sold to earn a profit of $50,000? For the...
2. Cutlass Company's projected profit for the coming year is as follows: Total Per Unit Sales $200,000 $20 Total variable cost 120,000 Contribution margin 80,000 8 Total fixed cost 64,000 Contribution margin $16,000 Required (40 marks): a. Compute the variable cost ratio. Compute the contribution margin ratio. b. Compute the break-even point in units. c. Compute the break-even point in sales dollars. d. How many units must be sold to earn a profit of $30,000? e. Using the contribution margin...
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Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $1,539,000 $28.50 Total variable cost 615,600 11.40 Contribution margin $17.1 $923,400 Total fixed cost 560,196 $363,204 Operating income Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole...
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Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $3,067,875 $40.50 Total variable cost 981,720 12.96 Contribution margin $ 2,086,155 $ 27.54 Total fixed cost 1,128,978 Operating income $ 957,177 Required: 1. Compute the break-even point in units. If required, round...
pls do e,f,g
2. Cutlass Company's projected profit for the coming year is as follows: Total Per Unit Sales Total variable cost $200,000 | 120,000 80,000 $20 12 8 Contribution margin Total fixed cost 64,000 Contribution margin $16,000 Required (40 marks): a. Compute the variable cost ratio. Compute the contribution margin ratio. b. Compute the break-even point in units. c. Compute the break-even point in sales dollars. d. How many units must be sold to earn a profit of $30,000?...