Assume the following (1) total sales = $200,000 (2) breakeven sales = $120,000, and (3) total fixed expenses = $50,000. Given these three assumptions, the margin of safety is: Multiple Choice $80,000. $30,000. $70,000. $150,000.
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- Assume the following (1) selling price per unit = $30, (2) variable expense per unit = $18, and (3) total fixed expenses = $52,200. Given these three assumptions, the unit sales needed to achieve a target profit of $10,200 is:Assume the following (1) selling price per unit = $30, (2) variable expense per unit = $18, and (3) total fixed expenses = $31,800. Given these three assumptions, the unit sales needed to achieve a target profit of $11,700 is: Multiple Choice O O 3,625 units. 15,325 units. 58,825 units. 43,500 units.Suppose Morrison Corp.’s breakeven point is revenues of $1,100,000. Fixed costs are $660,000. Q1. Compute the contribution margin percentage. Q2. Compute the selling price if variable costs are $16 per unit. Q3. Suppose 75,000 units are sold. Compute the margin of safety in units and dollars. Q4. What does this tell you about the risk of Morrison making a loss? What are the most likely reasons for this risk to increase?
- Assume the following (1) contribution margin = $150,000 (2) net operating income = $15,000, and (3) sales increase by 6%. Given these three assumptions, net operating income will increase by: Multiple Choice 60%. 1%. 6%. 25%.Peform a sensitivity analysis by answering the following questions: A. What is the break-even point in sales dollars for RBC? B. What is the margin of safety for RBC? C. What sales dollars would be required to achieve an operating profit of $170,000? $440,000?Assume the following (1) selling price per unit = $25, (2) variable expense per unit = $13, (3) unit sales = 2,640, and (4) total fixed expenses = $25,000. Given these four assumptions, net operating income must be: Multiple Choice $9,320. $6,680. $41,000. $27,640.
- You are required to (i)Determine profit, when sales =200,000 Fixed cost=40,000 BEP=160,000 (ii)Determine sales, when fixed cost=20,000 Profit=10,000 BEP=40,000Solve the following independent cases and label your supporting computations properly. A) The company's projected profit for the coming year is as follows: Total P 200,000' 120,000 80,000 64,000 16,000 Per Unit P 20 Sales Less: Variable Costs 12 P 8 Contribution Margin P Less: Fixed Costs Net Income 1. Compute the additional profit that the company would earn if sales were P25,000 more than expected. B) KTA sells a special type of health food at a price of P16 per pound. Last year, it purchases this food from its supplier at a cost of P12 per pound. The supplier informed KTA that its cost increases and that this product will now be priced at P14 a pound. Over the years, KTA established a steady market and intends to pass the cost increase along to its customers and also add a P1 per unit to the price for additional profit. Fixed cost for the year are not expected to change and will remain at P34,000. Income tax rate is 32%. The net income after tax last year was P24,000. 2. If KTA can…Assume the following (1) variable expenses = $300,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 20%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? Multiple Choice The total fixed expenses = $60,000 The variable expense ratio is 400% The total contribution margin = $240,000 The total sales = $375,000
- If Actual sales are OMR 450000, Total Fixed costs OMR 120000, Selling price per unit OMR 50, and Variable cost per unit OMR 35, which of the following shows Margin of Safety (MS) as amount and as percentage (on sales)? Select one: a. MS=70000 and MS (%)=12.15 b. MS=100000 and MS (%)=15 c. None of the options d. MS=50000 and MS (%)=11.11I have the following additional questions: 1) Calculate the breakeven point in dollars under the current scenario 2) Calculate the number of units to be sold if the company desires a target profit of $225,000. 3) Calculate the sales dollars if the company desires a target profit of $225,000.Assume the following (1) selling price per unit-$25, (2) variable expense per unit = $13, (3) unit sales=2,580, and (4) total fixed expenses = $25,000. Given these four assumptions, net operating income must be: Multiple Choice $8,540. O $39,500. O $27,580 $5.960.