Accounting
Tickman Fashion recently sold 70,000 shirts, generating sales revenue of RM4,900,000. The company's variable cost per unit and total fixed cost amounted to RM20 and RM2,800,000, respectively. Management is in the process of studying the monetary impact of various transactions and events, and desires answers to the following independent cases:
Required:
a. Management wants to lower the firm's break-even point to 52,000 units with all other things being equal. Calculate the fixed costs to achieve this objective.
b. The company anticipates a RM2 hike in the variable cost per unit with all other things being equal.
i. If management desires to keep the firm's current break-even point, calculate the selling price.
ii. If selling price remains constant, calculate the firm's total fixed costs.
Homework Answers
The break-even point in dollars will decrease, other things being the same, if: Unit selling price...
The break-even point in dollars will decrease, other things being the same, if: Unit selling price decreases. Unit variable costs decrease. Total fixed costs increase. All of the above are correct. None of the above are correct.
The information that follows was obtained from the accounting records of Portofino Manufacturing during a period...
The information that follows was obtained from the accounting records of Portofino Manufacturing during a period when the company sold 102,000 units. Sales revenue Variable costs Fixed costs $9,078,000 2,958,000 5,700,000 Required: A. Compute the company's per-unit contribution margin and break-even point in units. B. How many units must Portofino sell to produce a target profit of $450,000? C. Assume that Portofino was able to reduce the variable cost per unit by $3. What selling price could management charge if...
The information that follows was obtained from the accounting records of Portofino Manufacturing during a period when t...
The information that follows was obtained from the accounting records of Portofino Manufacturing during a period when the company sold 136,000 units. $11,560,000 2,992,000 8,127,000 Sales revenue Variable costs Fixed costs Required: A. Compute the company's per-unit contribution margin and break-even point in units. B. How many units must Portofino sell to produce a target profit of $945,000? C. Assume that Portofino was able to reduce the variable cost per unit by $5. What selling price could management charge if...
The manufacturing costs of Ackerman Industries for the first three months of the year follow: Total...
The manufacturing costs of Ackerman Industries for the first three months of the year follow: Total Costs Units Produced January $60,280 1,440 units February 56,160 845 March 87,360 2,145 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar. a. Variable cost per unit $ b. Total fixed cost $ part 2 Willie Company sells 35,000 units at $29 per unit. Variable costs are $18.56...
cost accounting
A company manufactures a single product. Budget and standard cost details for next year include:Selling price per unit Shs 2,400Variable production cost per unit Shs 860Fixed production costs Shs 650,000Fixed selling and distribution costs Shs 230,400Estimated sales commission per unit sold 5% of selling price Sales and production units 90,000 unitsRequired: i. Calculate the break-even point in units. ii. Calculate the percentage...
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Target Profit Ramirez Inc. sells a product for $80 per unit. The variable cost is $60 per unit, and fixed costs are $2,000,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $250,000. a. Break-even point in sales units 100,000 units b. Break-even point in sales units if the company desires a target profit of $250,000 22,500 units Feedback a. Unit sales price minus unit...
4) Saints Co. Sellstwo products, shoes & shirts. Last year, Saints sold 25,000 units of shoes and 30,000 units...
4) Saints Co. Sellstwo products, shoes & shirts. Last year, Saints sold 25,000 units of shoes and 30,000 units of shirts. Related data are as follows: Unit Variable Cost Unit Selling Price Unit Contribution Marrin Product $85 $50 Shoes $25 $15 Shirts Calculate the following: A) Saints Co's Sales Mix, B) Saints Co's unit selling price for E, C) Saints Co's unit contribution margin of E, D) Saints Co's break-even point assuming that last year's fixed costs were $255,000.
1. Break-even analysis To be profitable, a firm must recover its costs. These costs include both...
1. Break-even analysis To be profitable, a firm must recover its costs. These costs include both its fixed and its variable costs. One way that a firm evaluates at what stage it would recover the invested costs is to calculate how many units or how much in dollar sales is necessary for the firm to earn a profit. Consider the case of Blue Mouse Manufacturers: Blue Mouse Manufacturers is considering a project that will have fixed costs of $12,000,000. The...
intermediate cost accounting Cabrera Inc. produces and sells bobblehead dolls. Last year, Cabrera sold 156,250 units....
intermediate cost accounting
Cabrera Inc. produces and sells bobblehead dolls. Last year, Cabrera sold 156,250 units. The income statement for Cabrera Inc. for last year is as follows: Sales Less: Variable costs Contribution margin Less: Fixed costs Operating income $625,000 (343,750) $281,250 (180,000) $101.250 Required: 1. Compute the break-even point in units and in revenues. Compute the margin of safety in sales revenue for last year. 2. Suppose that the selling price decreases by 10 percent. Will the break-even point...
Target Profit Trailblazer Company sells a product for $210 per unit. The variable cost is $90 per unit, and flxed c...
Target Profit Trailblazer Company sells a product for $210 per unit. The variable cost is $90 per unit, and flxed costs are $396,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $138,600. 396,000 Xunits a. Break-even point in sales units b. Break-even point in sales units if the company desires a target profit of 120 X units $138,600 Feedback YCheck My Work a. Unit...
The information that follows was obtained from the accounting records of Portofino Manufacturing during a period when the company sold 102,000 units. Sales revenue Variable costs Fixed costs $9,078,000 2,958,000 5,700,000 Required: A. Compute the company's per-unit contribution margin and break-even point in units. B. How many units must Portofino sell to produce a target profit of $450,000? C. Assume that Portofino was able to reduce the variable cost per unit by $3. What selling price could management charge if...
The information that follows was obtained from the accounting records of Portofino Manufacturing during a period when the company sold 136,000 units. $11,560,000 2,992,000 8,127,000 Sales revenue Variable costs Fixed costs Required: A. Compute the company's per-unit contribution margin and break-even point in units. B. How many units must Portofino sell to produce a target profit of $945,000? C. Assume that Portofino was able to reduce the variable cost per unit by $5. What selling price could management charge if...
4) Saints Co. Sellstwo products, shoes & shirts. Last year, Saints sold 25,000 units of shoes and 30,000 units of shirts. Related data are as follows: Unit Variable Cost Unit Selling Price Unit Contribution Marrin Product $85 $50 Shoes $25 $15 Shirts Calculate the following: A) Saints Co's Sales Mix, B) Saints Co's unit selling price for E, C) Saints Co's unit contribution margin of E, D) Saints Co's break-even point assuming that last year's fixed costs were $255,000.
1. Break-even analysis To be profitable, a firm must recover its costs. These costs include both its fixed and its variable costs. One way that a firm evaluates at what stage it would recover the invested costs is to calculate how many units or how much in dollar sales is necessary for the firm to earn a profit. Consider the case of Blue Mouse Manufacturers: Blue Mouse Manufacturers is considering a project that will have fixed costs of $12,000,000. The...
intermediate cost accounting
Cabrera Inc. produces and sells bobblehead dolls. Last year, Cabrera sold 156,250 units. The income statement for Cabrera Inc. for last year is as follows: Sales Less: Variable costs Contribution margin Less: Fixed costs Operating income $625,000 (343,750) $281,250 (180,000) $101.250 Required: 1. Compute the break-even point in units and in revenues. Compute the margin of safety in sales revenue for last year. 2. Suppose that the selling price decreases by 10 percent. Will the break-even point...
Target Profit Trailblazer Company sells a product for $210 per unit. The variable cost is $90 per unit, and flxed costs are $396,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $138,600. 396,000 Xunits a. Break-even point in sales units b. Break-even point in sales units if the company desires a target profit of 120 X units $138,600 Feedback YCheck My Work a. Unit...
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