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2) A corporation sells 66,000 units of a product for $19.75 cach; the variable cost per...
2) A corporation sells 66,000 units of a product for $19.75 each; the variable cost per...
2) A corporation sells 66,000 units of a product for $19.75 each; the variable cost per unit is $11.50 each. The fixed costs are $315,000. Required A) breakeven units and dollars. B) how many units must be sold to achieve targeted income of $465,0007 C) What is the margin of safety in dollars and percentage? D) What is the operating leverage? E) The sales manager wants to raise prices by $2.00 each; demand will drop by ten percent, and the...
2. The Poncho Company sells ponchos at $60 each. The variable cost per unit is 50%...
2. The Poncho Company sells ponchos at $60 each. The variable cost per unit is 50% of the sales price and the total fixed costs are $300,000. During the summer, the Poncho Company renovated its factory. As a result, its total fixed costs increased by another $96,000 and variable costs decreased to 40% of the sales price. Determine the breakeven point in units and dollars before and after the renovation, using the contribution margin technique. Units Dollars Breakeven before modernization:...
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...
Scott Confectionery sells its Stack-o-Choc candy bar for $0.80. The variable cost per unit for the...
Scott Confectionery sells its Stack-o-Choc candy bar for $0.80. The variable cost per unit for the candy bar is $0.20; total fixed costs are $150,000. An increase in chocolate prices causes the variable cost per unit to increase to $0.55. Calculate the breakeven point in units? (Round answer to 0 decimal places, e.g. 5,275.) Breakeven point in units bars Using the above breakeven point in units, calculate breakeven sales in dollars. (Round answer to 0 decimal places, e.g. 5,275.) Breakeven...
Firm A Firm B units Price Variable Cost Fixed Costs Interest Expense Tax Rate 200.00 300.00...
Firm A Firm B units Price Variable Cost Fixed Costs Interest Expense Tax Rate 200.00 300.00 180.00 2,400.00 500.00 0.25 units Price Variable Cost Fixed Costs Interest Expense Tax Rate 2,000.00 8.00 4.50 2,400.00 500.00 0.25 Sales 200 units at 300 dollars Less Variable Costs (180 at 200 units) Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense Earnings after taxes (EAT) 60,000.00 36,000.00 2,400.00 21,600.00 500.00 21,100.00 5,275.00 15,825.00 Sales 2000...
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...
a. What is Madden's breakeven point in units sold for the next? b. If Madden wants...
a. What is Madden's breakeven point in units sold for the
next?
b. If Madden wants $4.5 million in pre-tax profit, what is the
required level of sales in dollars?
ENGG433/956-Spring-2019-Week-7 Submission Question 4.26 4-26 Breakeven; targeted profit; ROI targeted profit LO2, 3 Madden Company projected its income before taxes for next year as shown here. Madden is subject to a 40 per cent income tax rate. Sales (160,000 units) $8,000,000 Cost of goods sold Variable costs $2,000,000 Fixed-costs $3,000,000...
A company sells 45,000 units of its product at a price of $60 per unit. Variable...
A company sells 45,000 units of its product at a price of $60 per unit. Variable costs are $51 per unit and fixed costs are $275,000. What is the degree of operating leverage for the firm? .32 ,76 1.47 3.11
Total Revenue Profit Total Cost CVP Analysis Variable Cout Fed Cost Units Sold In Class Example...
Total Revenue Profit Total Cost CVP Analysis Variable Cout Fed Cost Units Sold In Class Example Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $60 per unit. Variable selling expenses are $18 per unit, annual fixed manufacturing costs are $480,000, and fixed selling and administrative costs are $240,000 per year. (1) Calculate the breakeven point in units and sales dollars. (2) Prepare a contribution margin income statement to...
A product sells for $5 per unit. The variable cost of production is $3 per unit. Total fixed...
A product sells for $5 per unit. The variable cost of production is $3 per unit. Total fixed costs per year are $1000, including depreciation expense of $200. What is the cash flow breakeven point in units and in dollars? A. 333 units and $1665. B. 500 units and $2500. C. 400 units and $2000. D. 267 units and $1333.
2. The Poncho Company sells ponchos at $60 each. The variable cost per unit is 50% of the sales price and the total fixed costs are $300,000. During the summer, the Poncho Company renovated its factory. As a result, its total fixed costs increased by another $96,000 and variable costs decreased to 40% of the sales price. Determine the breakeven point in units and dollars before and after the renovation, using the contribution margin technique. Units Dollars Breakeven before modernization:...
Firm A Firm B units Price Variable Cost Fixed Costs Interest Expense Tax Rate 200.00 300.00 180.00 2,400.00 500.00 0.25 units Price Variable Cost Fixed Costs Interest Expense Tax Rate 2,000.00 8.00 4.50 2,400.00 500.00 0.25 Sales 200 units at 300 dollars Less Variable Costs (180 at 200 units) Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense Earnings after taxes (EAT) 60,000.00 36,000.00 2,400.00 21,600.00 500.00 21,100.00 5,275.00 15,825.00 Sales 2000...
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...
a. What is Madden's breakeven point in units sold for the
next?
b. If Madden wants $4.5 million in pre-tax profit, what is the
required level of sales in dollars?
ENGG433/956-Spring-2019-Week-7 Submission Question 4.26 4-26 Breakeven; targeted profit; ROI targeted profit LO2, 3 Madden Company projected its income before taxes for next year as shown here. Madden is subject to a 40 per cent income tax rate. Sales (160,000 units) $8,000,000 Cost of goods sold Variable costs $2,000,000 Fixed-costs $3,000,000...
Total Revenue Profit Total Cost CVP Analysis Variable Cout Fed Cost Units Sold In Class Example Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $60 per unit. Variable selling expenses are $18 per unit, annual fixed manufacturing costs are $480,000, and fixed selling and administrative costs are $240,000 per year. (1) Calculate the breakeven point in units and sales dollars. (2) Prepare a contribution margin income statement to...
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