At QRT Plc. in the year ending 31st December 2020, 2,000 units of product Q were sold for £50. The contribution/sales ratio was 40%. In 2021, It is predicted that sales volumes will rise by 25% and the variable cost per unit will fall by 20%. Production levels will increase sufficiently to meet demand. (a) Calculate the predicted Contribution/Sales ratio for the 2021. (b) Describe the limitations of the breakeven analysis for decision making.
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- Question 3:salalah Company's financial information is given in the table below. Year 2020 Sales (OMR) Fixed Costs 445000 Variable Costs: 105000 245000 2021 500000 150000 280000 You are required to calculate the following values for each year. The years are independent of each other. a) P/V ratio, b) В.Е.Р. c) Sales required to earn a profit of OMR 45000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 300000.PAGE 1 NUBD Co. plans to market a new product. Based on its market studies. It estimates that it can sell 70,000 units in 2021. The selling price per unit is P2.00. Variable cost ratio is 40% of sales. Fixed costs are estimated to be P60,000. A.Compute the break-even point in units. B.Compute the break-even point in sales pesos.New information suggests that Holliday Ltd’s monthly fixed costs will rise to £230,000. Marginal cost per unit will remain at £76 and expected demand is still 5,000 units. If at least £60,000 of profit is required by shareholders per month, what is the minimum selling price the company will have to charge per unit? a. £134 b. £143 c. £116 d. £58
- You have the following information about a company in 2021: Total Costs were $174.7 million. Assume the Variable Costs were 60% and the rest were Fixed Costs. Sales Volume in thousands was 361.7 and will not change in the future. Cost inflation in 2022 was 5%. What was the variable cost per unit in 2022? Select one: O A. $290.1 O B. $105.2 O C. $483.5 O D. $304.3ABM Enterprise reported business transactions for a certain month in 2020: Unit Price, P55.75; Variable Cost Per Unit, P25.50, and Total Fixed Cost, P45,375.00. a. Compute for the number of units to be sold in order to break-even. b. How is the amount of sales to break-even?An industry is going to launch a new product in the market in the year 2018. The data pertaining to the costs and the estimated sales is provided as follows 1. Fixed cost for the year 2018-2019 is 20000$. 2. The variable cost per unit is 12$. 3. The estimated sales are 800000$. 4. If each unit is sold at 30$. Find out 1. Break-even point. 2. The profit at a turn-over of 25000 units. 3. Margin of safety in terms of units and sales. 4. If a profit target is 1200000$, compute the turn over required. 5. Also construct the break-even chart and show the details on it.
- Zebu has given the following details for two years: 2019-20 2020-21 Sales 800,000 ? PV Ratio 50% 37.50% MOS as a % 40% 21.875% of total sales Savings in fixed cost in fixed cost in year 2020-21 due to restruturing process. The company maintain its sales quantity level of 2019-20 in 2020-21 by reducing price. Compute: 1. Sales for the year 2020-21 in value, 2. Fixed cost for 2020-21 in value, 3. Break even sales for 2021For XYZ Company , how many units of their product would have to be sold to yield a target operating income of $92,000 for the financial year ending 2021, assuming variable costs are $50 per unittotal fixed costs are \$8, , and the unit selling price is $60 ? a. 800 units b. 2,000 units c. 10,000 units d. 9,200 unitsKarina Company prepared the following preliminary forecast concerning product Jungling Boot for 2021 assuming no expenditure for advertising: Selling price per unit P10 100,000 Unit sales Variable cost Fixed Cost P600,000 P300,000 Based on the market study in December 2020, Karina estimated that it could increase the unit selling price by 15% and increase the unit sales volume by 10% if P100,000 were spent on advertising. Assuming that Wilson incorporates these changes in its 2021 forecast, what should be the operating income for Product Jungling Boot? P205,000 P175,000 P190,000 ) P365,000 2
- BACKGROUNDThe company ABC, L. C. manufactures someproducts with an average sales price of € 25/unit,with fixed annual costs of € 110,000. The averageunit variable costs are € 5. DEVELOPa) At what volume of production will the threshold ofprofitability be reached?b) Assuming that annual sales are estimated at20,000 units, is distributed evenly over ayear, on what date will the break-even point bereached?c) What would be the sales value or turnovercorresponding to the threshold of profitability?Study the information given and answer the following questions independently:1. Use the contribution margin ratio to calculate the sales value required to break even.2. Calculate the margin of safety (as a percentage).3. Determine the sales volume required to achieve double the forecast operating profit for 2024.4. Suppose Tiffany Ltd is considering a R50 per unit decrease in the selling price of the product, with the expectation that this would increase the annual sales volume by 25%. Calculate the total Contribution Margin and Operating Profit/Loss.5. Determine the selling price per unit (expressed to the nearest cent) that would enable Tiffany Ltd to break even, if all 30 000 units are produced and sold.(b) The cost of materials is expected to rise by 20%, while total fixed costs are expected to rise by RM13,000 per year:Calculate the number of units that must be sold for the company's net profit to be maintained. Assume that the rest of the data is unchanged. Determine a new break-even point and margin of safety in bottles if the selling price change to RM 6 per packet. Assume that all other variables remain constant. please provide calculations for each of them.