If the variable cost ratio is 70%, and the variable cost per unit is $50, and...
If the variable cost ratio is 70%, and the variable cost per unit is $50, and the after tax net income is $250,000 with a tax rate of 20%, what is the margin of safety (in units)?
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If the variable cost ratio is 70%, and the variable cost per
unit is $50, and...
Carter Company sells a product for $100 per unit. The variable cost is $40 per unit,...
Carter Company sells a product for $100 per unit. The variable cost is $40 per unit, while fixed costs are $300,000. Additionally, the income tax rate is 40 percent. Required: Calculate the contribution margin ratio (round your answer to xx.x %). Calculate the break-even point in sales units. Calculate the break-even point in sales dollars or revenues. How many units need to be sold to generate a pretax income of $180,000? Recalculate the break-even point in sales units if the...
3 (a) Calculate variable cost per unit. Current Designs.xls Data Review View Home Insert Page Layout...
3 (a) Calculate variable cost per unit. Current Designs.xls Data Review View Home Insert Page Layout Formulas Kevlar Kevlar Resin and supplies Finishing kit (seat, rudder, ropes, etc.) Labor Selling and administrative expenses - variable Total variable costs per unit 2 Resin and supplies 3 Finishing kit (seat, rudder, ropes, etc.) 4 Labor 5 Selling and administrative expenses variable 6 Selling and administrative expenses—fixed 7 Manufacturing overhead-fixed $250 per kayak $100 per kayak $170 per kayak $420 per kayak $400...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 135,000 units and has fixed cost of $353,000. The variable cost per unit is $0.45. What price does Jefferson charge per unit? Note: Round to the nearest cent. 2. Sooner Industries charges a price of $111 and has fixed cost of $414,000. Next year, Sooner expects to sell...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 135,000 units and has foed cost of $350,600. The variable cost per unit is $0.40. What price does Jefferson charge per unit? Note: Round to the nearest cent. 2. Sooner Industries charges a price of $115 and has fixed cost of $459,500. Next year, Sooner expects to sell...
Chapter 5: Applying Excel Data Unit sales 20,000 units $60 Selling price per unit Variable expenses...
Chapter 5: Applying Excel Data Unit sales 20,000 units $60 Selling price per unit Variable expenses per unit Fixed expenses per unit $45 per unit $240,000 Enter a formula into each of the cells marked with a ? below Review Problem: CVP Relations hips Compute the CM ratio and variable expense ratio Selling price per unit Variable expenses per unit Contribution margin per unit ? per unit ? per unit ? per unit CM ratio Variable expense ratio ? Compute...
BOOK Calculator Print Item Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense...
BOOK Calculator Print Item Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Unless otherwise instructed, round all total dollar figures (e.g. sales, total contribution margin) to the nearest dollar, breakeven or target units to the nearest unit, and unit costs and unit contribution margins to the nearest cent. Round ratios to four significant digits. Required: 1. At the break-even point, Jefferson Company sells 115,000 units...
49. The contribution margin per unit and the contribution margin ratio will remain constant as long...
49. The contribution margin per unit and the contribution margin ratio will remain constant as long as: a. the selling cost remains the same. b. the cost of production and selling price changes. c. the sales revenue varies in direct proportion to volume. d. the volume of sales decreases. 50. The difference between sales and cost of goods sold equals ________. a. net profit b. profit after tax c. gross profit d. ...
JP Corporation's projected data for 2017 are: Sales: 203,000 units Unit Price: $70 Total Variable Cost:...
JP Corporation's projected data for 2017 are: Sales: 203,000 units Unit Price: $70 Total Variable Cost: ? Total Contribution Margin: $6,090,000 Total Fixed Cost: $4,945,500 Operating Income: ? REQUIRED: 1. Compute the Unit Variable Cost 2. Compute the CM per unit 3. Compute the BEP in units 4. Calculate the CMR with four decimals 5. Compute the BEP in sales revenue 6. Compute the Margin of Safety in units 7. Compute the Margin of Safety in dollars 8. Compute the...
Allison Enterprises sells a product for $100 per unit. The variable cost is $60 per unit,...
Allison Enterprises sells a product for $100 per unit. The variable cost is $60 per unit, while fixed costs are $180,000. Additionally, the income tax rate is 40 percent Required: a. Calculate the contribution margin per unit. b. Calculate the break-even point in sales units. c. Calculate the break-even point in sales dollars or revenues. d. How many units need to be sold to generate a pretax income of $60,000? e. Recalculate the break-even point in sales units if the...
Jensen Company has the following situation: Sales Price: $50 per unit Variable Cost Per Unit: $30...
Jensen Company has the following situation: Sales Price: $50 per unit Variable Cost Per Unit: $30 per unit Fixed Costs: $20,000 Units Sold: 4.000 Jensen is considering lowering the price to $45 per unit which she believes would increase units sold to 5,000 Required • Calculate the net income under the current situation and then again with the changes. • Using the original data, what selling price would be needed to have a net income of $20,000? Should Jensen lower...
3 (a) Calculate variable cost per unit. Current Designs.xls Data Review View Home Insert Page Layout Formulas Kevlar Kevlar Resin and supplies Finishing kit (seat, rudder, ropes, etc.) Labor Selling and administrative expenses - variable Total variable costs per unit 2 Resin and supplies 3 Finishing kit (seat, rudder, ropes, etc.) 4 Labor 5 Selling and administrative expenses variable 6 Selling and administrative expenses—fixed 7 Manufacturing overhead-fixed $250 per kayak $100 per kayak $170 per kayak $420 per kayak $400...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 135,000 units and has fixed cost of $353,000. The variable cost per unit is $0.45. What price does Jefferson charge per unit? Note: Round to the nearest cent. 2. Sooner Industries charges a price of $111 and has fixed cost of $414,000. Next year, Sooner expects to sell...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 135,000 units and has foed cost of $350,600. The variable cost per unit is $0.40. What price does Jefferson charge per unit? Note: Round to the nearest cent. 2. Sooner Industries charges a price of $115 and has fixed cost of $459,500. Next year, Sooner expects to sell...
Chapter 5: Applying Excel Data Unit sales 20,000 units $60 Selling price per unit Variable expenses per unit Fixed expenses per unit $45 per unit $240,000 Enter a formula into each of the cells marked with a ? below Review Problem: CVP Relations hips Compute the CM ratio and variable expense ratio Selling price per unit Variable expenses per unit Contribution margin per unit ? per unit ? per unit ? per unit CM ratio Variable expense ratio ? Compute...
BOOK Calculator Print Item Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Unless otherwise instructed, round all total dollar figures (e.g. sales, total contribution margin) to the nearest dollar, breakeven or target units to the nearest unit, and unit costs and unit contribution margins to the nearest cent. Round ratios to four significant digits. Required: 1. At the break-even point, Jefferson Company sells 115,000 units...
JP Corporation's projected data for 2017 are: Sales: 203,000 units Unit Price: $70 Total Variable Cost: ? Total Contribution Margin: $6,090,000 Total Fixed Cost: $4,945,500 Operating Income: ? REQUIRED: 1. Compute the Unit Variable Cost 2. Compute the CM per unit 3. Compute the BEP in units 4. Calculate the CMR with four decimals 5. Compute the BEP in sales revenue 6. Compute the Margin of Safety in units 7. Compute the Margin of Safety in dollars 8. Compute the...
Allison Enterprises sells a product for $100 per unit. The variable cost is $60 per unit, while fixed costs are $180,000. Additionally, the income tax rate is 40 percent Required: a. Calculate the contribution margin per unit. b. Calculate the break-even point in sales units. c. Calculate the break-even point in sales dollars or revenues. d. How many units need to be sold to generate a pretax income of $60,000? e. Recalculate the break-even point in sales units if the...
Jensen Company has the following situation: Sales Price: $50 per unit Variable Cost Per Unit: $30 per unit Fixed Costs: $20,000 Units Sold: 4.000 Jensen is considering lowering the price to $45 per unit which she believes would increase units sold to 5,000 Required • Calculate the net income under the current situation and then again with the changes. • Using the original data, what selling price would be needed to have a net income of $20,000? Should Jensen lower...
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