(iii) Product 'X' generates a contribution to sales ratio of 40%. Fixed costs directly attrib-utable to ‘X' amounts to ₹ 60,000 per month. The sales required to achieve a monthlyprofit of ₹ 12,000 will be(A)1,87,500(B) ₹ 2,00,000(C) ₹ 1,65,000(D) ▼₹ 1,80,00042

The objective of the question is to calculate the sales required to achieve a monthly profit of INR…

Answered: (iii) Product 'X' generates a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Suppose that a company expects the fo llowing financial resuJts from a project during its first year ope ration:• Sales revenue: $250.000• Variable costs: $80.000• Fixed costs: $50.000• Total unit produced and so ld: 1,000 units(a) Compute the contribution ma rgin pe rcentage.(b) Compute the brcakcven point in units sold.
Product X generates a contribution to sales ratio of 50%. Fixed costs directly attributable to product X are £100,000 per annum. The sales revenue required to achieve an annual profit of £125,000 is A £450,000 B £400,000 C £125,000 D £100,000
If the contribution margin ratio is 55%, target operating income is $30,000, and the sales revenue needed to achieve the target operating income is $100,000, what are total fixed expenses? O A. $55,000 О В. $25,000 о с. $85,000 O D. $16,500
Compute economic order quantity if annual demand is 5000 units , ordering cost is Rs.30 per order and holding cost is Rs. 6 per unit per annum.
Define and compute the EOQ, and Total variable cost for the given information- Annual demand 5000 units Storage cost 2% per annum interest rate 12% per annum Obsolescence rate 6% per annum Unit price Rs 20 Order cost 16
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?
b) Tara Company produces a single product. The projected income statement for the coming year is as follows: RM1,800,000 Sales (40,000 units @ RM45) Total variable cost 1,044,000 Contribution margin RM 756,000 Total fixed cost 733,320 Operating income RM 22,680 (Note: Round all RM value answers to the nearest dollar. Round contribution margin ratio and degree of operating leverage to two decimal places.) Required: i. Solve the break-even sales value (RM). ii. Solve the margin of safety in sales value (RM). iii. Solve the degree of operating leverage.
Given the selling price at P120 per unit; contribution margin at 25% and fixed cost at P250,000, the total variable expenses at the breakeven point would be? c. P 450,000 d. P 250,000 a. P 350,000 b. P 750,000
With i = 15% and n = 10, what is the uniform annual cost if initial cost is P25k and decrease of P1.5k a year. a. P17,925.206 b. P15,925.206 c. P21,925.206 d. P19,925.206
Compute for what is being asked1. Unit selling price P800 unit variable cost P350 annual sales volume, 620 units, fixed costs and expenses P200,000 per year. Compute the following.a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salee. Operating income (BIT)using the break even salef. Operating income (EBIT) using the annual sales volume
If sales are Rs.90000 and variable cost to sales is 75%, contribution is: Rs.67500 Rs.21500 Rs.23500 Rs.22500
A manufacturer has a monthly fixed cost of $87,500 and a production cost of $15 for each unit produced. The product sells for $20/unit. (a) What is the cost function? CX) (b) What is the revenue function? R(x) - (c) What is the profit function? Px) - (d) Compute the profit (loss) corresponding to production levels of 15,000 and 20,000 units. (Input a negative value to indicate a loss) PL1S,000)- P(20,000) =

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(iii) Product 'X' generates a contribution to sales ratio of 40%. Fixed costs directly attrib- utable to ‘X' amounts to ₹ 60,000 per month. The sales required to achieve a monthly profit of ₹ 12,000 will be (A) 1,87,500 (B) ₹ 2,00,000 (C) ₹ 1,65,000 (D) ▼₹ 1,80,000 42