An organization's break-even point is 4,000 units at a sales price of P50 per unit, variable cost of P30 per unit, and total fixed costs of P80,000. If the company sells 500 additional units, by how much will its profit increase?
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A: Break-Even Point: It refers to a point of production at which there is no profit no loss.
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A: Break-even is the point wherein the company is in a situation of no profit no loss.
Q: An organization's break-even point is 4,000 units at a sales price of P50 per unit, variable cost of…
A: Given: Selling price = P50 Variable cost = P30 Additional units sold = 500 Fixed cost = P80,000
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A: Contribution Margin is the excess of unit selling price on the unit variable costs. Contribution…
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A: Contribution margin ratio shows revenue over and above variable costs.
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A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
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Q: the firm must have a sales price per unit of at least *
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A: The break even sales are the sales where business earns no profit no loss during the period.
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A: To earn a target profit of $50,000, Campbell must earn a contribution margin of $250,000…
Q: Suppose ABC Corp’s break-even point is revenues of $1,100,000. Fixed costs are $660,000. Calculate…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
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A: Break-even analysis is the easiest form of cost-volume-profit analysis. Break-even analysis is used…
Q: Glassman Company sells its one product at $30 per unit. Variable costs are $25 per unit and fixed…
A: Break-even point in units = Fixed costs / (Selling price - Variable costs) Break-even point in sales…
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A:
Q: The Vetron Company is planning to produce two products, Tig and Lam. Vetron is planning to sell…
A: Solution: - Calculation of Break-even point of "Tig" as follows under(In pesos):-
Q: what is the minimum selling price the company will have to charge per unit?
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Q: Lindon Company is the exclusive distributor for an automotive product that sells for $50.00 per unit…
A: Calculation of Variable expenses per unit Variable expenses per unit = Selling price per unit X…
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A: Unit Contribution margin = Unit selling price x Contribution margin ratio
Q: A company with fixed costs of P40,000 is now breaking even on sales of P160,000. How much income…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: a. What is the break-even point in units? b. What is the break-even point in dollars? c. If Weber…
A: Break-even analysis is one of the most important quantitative techniques that is used in the…
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Q: National Co. has revenue of P500,000, variable costs of P300,000 and pretax profit of P150,000. If…
A: Answer) Calculation of New Break-eve Point New Break-even Point = Revised Fixed Cost/ Revised…
Q: Brolin Company sells a single product. The product has a selling price of $50 per unit and variable…
A: Solution : Contribution margin ratio = 100% - variable cost ratio = 100% - 80% = 20%
Q: n organization's break-even point is 4,000 units at a sales price of $50 per unit, variable cost of…
A: Step 1 Break even point is the production level at which total revenues for a product equal total…
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A: Cost-volume-profit (CVP) analysis is an important and systematic method which provides useful…
Q: An organization's break-even point is 6,000 units at a sales price of P50 per unit, variable cost of…
A: Break even point = Fixed costs /Contribution margin per unit where, Contribution margin per unit =…
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- Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
- Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000An organization's break-even point is 4,000 units at a sales price of P50 per unit,variable cost of P30 per unit, and total fixed costs of P80,000. If the companysells 500 additional units, by how much will its profit increase? A. P25,000B. P15,000C. P10,000D. P12,000Suppose ABC Corp’s break-even point is revenues of $1,100,000. Fixed costs are $660,000. Calculate the contribution margin percentage. Calculate the selling price if variable costs are $16 per unit. Suppose 75 000 units are sold, calculate the profit earned. Willo the company beprofitable if able to sell 30,000 units? Explain. What should the company do to increase its profit above break-even point.
- Suppose ABC Corp’s break-even point is revenues of $1,100,000. Fixed costs are $660,000 a. Calculate the contribution margin percentage. b. Calculate the selling price if variable costs are $16 per unit. c. Suppose 75 000 units are sold. Calculate the profit earned. d. Will the company be profitable if able to sell 30,000 units? Explain. c. What should the company do to increase its profit above break-even point?A company manufactures and sells a single product whose selling price is P500 and whose variable expense is P300 per unit. The company’s monthly fixed expense is P120,000. Required:1. Solve for the unit sales that are required to earn a target profit of P80,000. 2. If the company wants to earn a profit of P200,000, how much should be the sales revenue?Golden Corporation contemplates to market a new product. Estimated fixed costs is P1,000,000. The variable costs ratio is 60%. if the product is to be sold at P25 per unit, how many units should the company sell to earn a net income of P200,000?
- What is the breakeven point in dollars if annual fixed costs are 114,000 and Cost to Overhead is 0.65? If the objective of the firm is to get 25% profit, how many units does it have to sell if the price per unit is $250?A new product can be sold at OMR 50 per unit. The fixed cost is 8,640. The variable cost per unit is OMR 30. The company produces 900 units. What is the total profit if the company sells 900 units?A company sells its product at P18 per unit. Variable costs are P12 per unit and fixed costs are 150,000 per annum. The company wants to realize a profit of P60,000 during the year. What should be the sales revenue?
