Proteam manufactures and sells one product – a hammock for use between two trees. Each hammock...
- Proteam manufactures and sells one product – a hammock for use
between two trees. Each hammock sells for $80 and the variables
costs are $35 per unit. Fixed costs consist of manufacturing costs
of $800,000 and marketing costs of $500,000. Management’s profit
goal for the coming year is operating income of $250,000.
- What is the breakeven in number of dollars?
- Budgeted sales for the coming year are $3.6 million. What is the margin of safety %?
- The company is considering a new production process that will result in 20% lower variable costs per unit; however, fixed costs will increase by $300,000. What is the impact of the new strategy on operating income? Should the company adopt the new strategy? Why or why not? Please show all work
Homework Answers
Add Answer to:
Proteam manufactures and sells one product – a hammock for use
between two trees. Each hammock...
The Doral company manufactures and sells pens. 5,600,000 units are sold per year at $0.50 per...
The Doral company manufactures and sells pens. 5,600,000 units are sold per year at $0.50 per unit. Fixed costs are $870,000 per year. Variable costs = $0.30 per unit. 1. What is the current breakeven point in revenues? 2. A $0.05 per unit increase in variable costs results in a new operating (income or loss?) of $? 3. A 10% increase in fixed costs and a 10% increase in units sold results in a new operating (income or loss?) of...
6. DEF Company manufactures and sells a single product that sells for $450 per unit; varialble...
6. DEF Company manufactures and sells a single product that sells for $450 per unit; varialble costs are $270. Annual fixed costs are $800,000. The products current break-even point in dollars is $2,000,000 and sales are expected to be $4,000,000. (5 Points) The current margin of safety in dollars is: (5 Points) The current margin of safety percentage is: 7. XYZ Company manufactures and sells a single product that sells for $400 per unit; variable costs are $200. Annual fixed...
disregard the 4th image Hammock Manufacturing manufactures a single product that it will sell for $74...
disregard the 4th image
Hammock Manufacturing manufactures a single product that it will sell for $74 per unit. The company is looking to project its operating income for its first two years of operations. Cost information for the single unit of its product is as follows During its first year of operations, the company plans to manufacture 24,000 units and anicipates selling 22.000 of those units. During the second year of its operations, the company plans to manufacture 24,000 units...
The Brewer Company manufactures and sells pens. Currently, 5,300,000 units are sold per year at $0.50...
The Brewer Company manufactures and sells pens. Currently, 5,300,000 units are sold per year at $0.50 per unit. Fixed costs are $900,000 per year. Variable costs are $0.30 per unit Read the requirements. Requirements Requireme (a) Start by Operating income Consider each case separately: 1. a. What is the current annual operating income? b. What is the current breakeven point in revenues? Compute the new operating income for each of the following changes: 2. A $0.08 per unit increase in...
The McKnight Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.60...
The McKnight Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.60 per unit. Fixed costs are $880,000 per year. Variable costs are $0.40 per unit. Read the requirements. Requirements F Operating income Consider each case separately: 1. a. What is the current annual operating income? b. What is the current breakeven point in revenues? Compute the new operating income for each of the following changes: 2. A $0.08 per unit increase in variable costs 3....
The McKnight Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.60...
The McKnight Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.60 per unit. Fixed costs are $880,000 per year. Variable costs are $0.40 per unit. Read the requirements. Requirements F Operating income Consider each case separately: 1. a. What is the current annual operating income? b. What is the current breakeven point in revenues? Compute the new operating income for each of the following changes: 2. A $0.08 per unit increase in variable costs 3....
(20) QUESTION 3 Dulux Limited manufactures and sells only one product. The budgeted details for 2019...
(20) QUESTION 3 Dulux Limited manufactures and sells only one product. The budgeted details for 2019 are as follows: No. of units sold. 160 000 Selling price per unit R3,00 Variable cost per unit R1,60 Total fixed costs. R1 450 000 REQUIRED 3.1 Calculate the total marginal income and budgeted net profit (loss) for 2019. 3.2 Calculate the breakeven quantity and value. (4) 3.3 Suppose Dulux Limited wants to make provision for 10% increase in fixed costs and an increase...
The McKnight Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.60...
The McKnight Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.60 per unit. Fixed costs are $880,000 per year. Variable costs are $0.40 per unit. Read the requirements. i Requirements osts Operating income %3D Consider each case separately: 1. a. What is the current annual operating income? b. What is the current breakeven point in revenues? Compute the new operating income for each of the following changes: 2. A $0.08 per unit increase in variable...
Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs...
Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $270. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the current margin of safety in dollars for Flannigan Company. Multiple Choice $1,560,000. $2,000,000. $2,200,000. $2,895,652. $2,460,000.
The three questions use this case: This month, Candel Gym has sales of $800,000, contribution margin...
The three questions use this case: This month, Candel Gym has sales of $800,000, contribution margin of $320,000, fixed cost of $200,000 and operating profit of $120,000. Q1. What is the breakeven RATIO? ________? The Break-even Sales? $__________________. Use What-If 3-Trials method. Manually sketch your 3 trials in the space provided. Q2. What is the firm’s Operating Risk Ratio? ____________. Margin of safety ratio to sales [ie., safety ratio]? _____ % Q3. What is the firm’s operating leverage number? _________...
6. DEF Company manufactures and sells a single product that sells for $450 per unit; varialble costs are $270. Annual fixed costs are $800,000. The products current break-even point in dollars is $2,000,000 and sales are expected to be $4,000,000. (5 Points) The current margin of safety in dollars is: (5 Points) The current margin of safety percentage is: 7. XYZ Company manufactures and sells a single product that sells for $400 per unit; variable costs are $200. Annual fixed...
disregard the 4th image
Hammock Manufacturing manufactures a single product that it will sell for $74 per unit. The company is looking to project its operating income for its first two years of operations. Cost information for the single unit of its product is as follows During its first year of operations, the company plans to manufacture 24,000 units and anicipates selling 22.000 of those units. During the second year of its operations, the company plans to manufacture 24,000 units...
The Brewer Company manufactures and sells pens. Currently, 5,300,000 units are sold per year at $0.50 per unit. Fixed costs are $900,000 per year. Variable costs are $0.30 per unit Read the requirements. Requirements Requireme (a) Start by Operating income Consider each case separately: 1. a. What is the current annual operating income? b. What is the current breakeven point in revenues? Compute the new operating income for each of the following changes: 2. A $0.08 per unit increase in...
The McKnight Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.60 per unit. Fixed costs are $880,000 per year. Variable costs are $0.40 per unit. Read the requirements. Requirements F Operating income Consider each case separately: 1. a. What is the current annual operating income? b. What is the current breakeven point in revenues? Compute the new operating income for each of the following changes: 2. A $0.08 per unit increase in variable costs 3....
The McKnight Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.60 per unit. Fixed costs are $880,000 per year. Variable costs are $0.40 per unit. Read the requirements. Requirements F Operating income Consider each case separately: 1. a. What is the current annual operating income? b. What is the current breakeven point in revenues? Compute the new operating income for each of the following changes: 2. A $0.08 per unit increase in variable costs 3....
(20) QUESTION 3 Dulux Limited manufactures and sells only one product. The budgeted details for 2019 are as follows: No. of units sold. 160 000 Selling price per unit R3,00 Variable cost per unit R1,60 Total fixed costs. R1 450 000 REQUIRED 3.1 Calculate the total marginal income and budgeted net profit (loss) for 2019. 3.2 Calculate the breakeven quantity and value. (4) 3.3 Suppose Dulux Limited wants to make provision for 10% increase in fixed costs and an increase...
The McKnight Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.60 per unit. Fixed costs are $880,000 per year. Variable costs are $0.40 per unit. Read the requirements. i Requirements osts Operating income %3D Consider each case separately: 1. a. What is the current annual operating income? b. What is the current breakeven point in revenues? Compute the new operating income for each of the following changes: 2. A $0.08 per unit increase in variable...
Most questions answered within 3 hours.
-
A 2-kg block sits on a horizontal table. There is a hole in the
table directly...
asked 7 seconds from now -
If the rate law for the reaction A ⟶ Products is rate = k[A]2 ,
calculate...
asked 3 minutes ago -
A
projectile is shot horizontally at 23.4 m/s from the roof of a
building 55 m...
asked 17 minutes ago -
Which of the following ratios would be considered a measurement
of short-term liquidity?
Select one:
a....
asked 19 minutes ago -
Nitrogen dioxide is one of the many oxides of nitrogen (often
collectively called "NOx") that are...
asked 28 minutes ago -
1/ Using ________________ as they are intended is the best
guarantee for consistency and forward compatibility....
asked 38 minutes ago -
Portfolio theory
Given the following information about firm A and the
market:δ
E (Rm)= 12 per...
asked 35 minutes ago -
Albert files his income tax return (showing a total tax of
$23,000) 5½ months after the...
asked 39 minutes ago -
This exercise involves you using imagination and logical
reasoning to occupy the mindset of a visualiser...
asked 49 minutes ago -
What kinds of storage have you seen in use during your own
lifetime?
asked 50 minutes ago -
Practicing Acid Base Calculations
Cameco in Port Hope, Ontario uses hydrofluoric acid to make a
uranium...
asked 57 minutes ago -
The gross payoffs (X) from the investment have the following
probability mass function.
x
p(x)
0...
asked 1 hour ago