Problem 2 The price and cost data shown in the table below are for each of the three firms, F, G and H. Firm F G H Sate price per $18.00 $21.00 $30.00 unit Variable operating cost $6.75 $13.50 $12.00 per unit Fixed operating $45,000 $30,000 $90,000 cost Operating breakeven point Rank (1st, 2nd, or 3rd) (a) What is the operating breakeven point in units for each firm? Fill in the blanks in the table above. (b) How would you rank these firms in order from most risky to least risky? Fill in the blanks in the table above.

Problem 2 The price and cost data shown in the table below are for each of the three firms, F, G and H. Firm F G H Sate price per $18.00 $21.00 $30.00 unit Variable operating cost $6.75 $13.50 $12.00 per unit Fixed operating $45,000 $30,000 $90,000 cost Operating breakeven point Rank (1st, 2nd, or 3rd) (a) What is the operating breakeven point in units for each firm? Fill in the blanks in the table above. (b) How would you rank these firms in order from most risky to least risky? Fill in the blanks in the table above.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Question 3: Sobar Company's financial information is given in the table below. Sales (OMR) Fixed Costs 405000 450000 Variable Costs 225000 240000 Year 2019 90000 | 2020 120000 Calculate: a) P/V ratio, b) B.E.P.
(e) Product Blue Product Red £ £Selling £12.00 £24.00Variable cost £ 4.00 £ 8.00Contribution margin £ 8.00 £16.00Fixed costs apportioned £200,000 £400,000Budgeted Sales Units 140,000 60,000Required:Calculate the breakeven points, for each product and the company as a wholeand comment on your findings
HRM ASSIGNMENT- MBA II SEM POF Entrepreneurship_MBA II Sem.pd x PDE Financial Management - MBA II X O File | C:/Users/ANIKET%20PATWA/Downloads/Financial%20Management%20-%20MBA%2011%20Sem%20.pdf (D Page view A Read aloud V Draw E Highlight 1 of 2 ++ Erase Profit Rs.10,000 Variable Cost 70% 4. The comparative statement of two companies, namely Radha Co. Ltd and Mohan Co. Ltd. given below: Particulars Radha Co. Mohan Co. Sales 400000 400000 Variable Cost 200000 200000 Contribution Calculate? Calculate? Fixed Cost 100000 EBIT Calculate? Calculate? Interest 1000 EBT Calculate? Calculate? You are required to calculate different leverages, and comment which company is better in financial terms, assuming the rate of taxes is 30% and number of shares is 6000. 5. N O 15:58 O Type here to search a 4)) ENG 25 03-05-2021 +
Problem:2 A firm has received an order from customer X to be executed for RO1,800 ( all inclusive). The order requires the following materials, labour etc. Materials Requirements In stock Book value A B 100kg 300kg 50kg RO 250 140kg RO 280 Replacement cost per kg RO 7 RO 3 Realizable value per kg RO 3 RO 1 Labour: Department I: 10 hrs @ RO15 Department II: 8 hrs @ RO12 Variable Overhead: RO 150 Material A is regularly used by the firm and if used on this order has to be replaced for the use of other orders. Material B has no use and is the result of excessive purchase made for an order executed two years ago. Labour in department I is available for this order but labour in department II is fully engaged on another order which is earning a contribution of RO 20 per hour and if the order from X is to be executed, labour in department II has to be diverted from current operations. State whether the order received from customer X has to accepted.
ageNOWv2 | Online teachin X + m/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress... A F Variable costs as a percentage of sales for Lemon Inc. are 72%, current sales are $610,000. and fixed costs are $191,000. How much will income from operations change if sales increase by $48,900? Oa. $13,692 decrease Ob. $13,692 increase Oc. $35,208 decrease. Od. $35,208 increase D Q 10+
Understanding CVP relationships Calculate the missing amounts for each of thefollowing firms:Units Selling Variable Costs Contribution Fixed OperatingSold Price per Unit Margin Costs Income (Loss)Firm A 11,200 $24.00 ? $100,800 $41,300 ?Firm B 8,400 ? $18.20 ? 64,500 $32,940Firm C ? 7.30 4.20 10,850 ? (6,750)Firm D 4,720 ? 51.25 41,064 48,210 ?
Chapter 6 Uniform Señes Analysisy Acertain 'ndustrial firm desires an economic analysis to detemine which of twodifferent machine should be purechased. Each machine s capable of performing the same task given amount of Hime . Assume the minimum attactiverate od returnMARR) is 8%. The following data are to beüsedin your anaylsis Machine X Machine Y First cost $ 5000.00 $8000,00 $150.00 $2000.00 Annual Manitenance Cost $00.00 Salvage value Es timated life inyear which machine would youchoo se? Base your answer on annual.cost Pravide cash flow diagrams and Showyour work? $00.00 12 i50 150 ISo 15. 150 IS. 15a 15. İso 1 2000. 150 ISo A A 5 6 7 la 12
(e) Product Blue Product Red Selling $12.00 $24.00Variable cost $4.00 $8.00Contribution margin $8.00 $16.00Fixed costs apportioned $200,000 $400,00Budgeted Sales Units 140,000 60,000 Calculate the breakeven points, for each product and the company as a whole and comment on your findings f)Discuss the merits and demerits of the cost volume profit analysis (CVP)
Jilrn/takeAssignment/takeAssignment Main.do?invoker=&takeAssignmentSession Locator=&inprogress=false eBook Show Me How Contribution Margin Ratio a. Young Company budgets sales of $1,280,000, fixed costs of $66,200, and variable costs of $294,400. What is the contribution margin ratio for Young Company? % b. If the contribution margin ratio for Martinez Company is 52%, sales were $682,000, and fixed costs were $262,430, what was the operating income? Check My Work 2 more Check My Work uses remaining, B Previous Next
I'se the following information to answer questions 1-6. Selling price per unit Luriable manufacturing cost per unit Fixed manufacturing cost per unit V'ariable selling cost per unit Fixed selling cost per unit Expected production and sales P100 20 30 25 10 1,000 units 1. Contribution margin per unit is a. P50 b. P55 с. Р80 d. P15 2. The contribution margin ratio is a. 45% b. 50% c. 55% d. 15%
Remember: Gross profit = SP- CP Activity 1.2 enti Complete the following table: Table 1.2: Finding the cost price, the gross profit or the selling price No Cast price Gross prafit Selling price 1.2.1 R5 600 R8 700 1.2.2 R3 400 30% 1.2.3 R6 800 R12 700 1.2.4 R17 500 R35 000 The owner of an enterprise has to calculate both the gross and the net profit. A business has certain operating expenses thai must be deducied from the gross profit to get the net profit. Examples of operating expenses are: • Salaries Wages • Rent paid/rent expense • Advertisements • Stationery. The cost of advertising the business is one example of an operating expense. Gross profit minaş operating expenses equals net profit."
6ix cas Q1:-ADIaduces faces a irsiable costRS S per Rs, 50 and a unit output when he produces leen f output than 200 units of function. •Assuming that total cost 15 limeandetemine the eajuation the tobal. cost function n level 6 t of ' What is the break-ever outpul Rs, 10 goaphs Detenmine the producens net f phice. of out put is umit, Also doaw che nelevak the price of per. output in 12 umnits onnd the Loutput is , RS10 amd R15 espectively Rs.5. and R,15