A firm has fixed costs of P200,000 and variable costs per unit of P6. It plans on selling 40,000 units in the coming year. If the firm pays income taxes on its income at a rate of 40 percent, what sales price must the firm use to obtain an after-tax profit of P24,000 on the 40,000 units
Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit,…
A: Contribution margin is the price of the product deduct all the linked variable costs, results from…
Q: A company sells 4100 units of a product at 15 JOD per unit, which costs the company JOD 12 to…
A: Markup: The markup is the difference between the selling price of a product or service and the cost…
Q: Lindon Company is the exclusive distributor for an automotive product that sells for $40.00 per unit…
A: Contribution Margin Ratio = Contribution / Sales 0.3= Contribution / $ 40 Contribution per unit =$…
Q: The company produced and sold 14,000 units last year with sales price of $50 per unit and unit…
A: Current profit = (sales price- variable costs) x no. of units sold - fixed costs =…
Q: Lewin Corp. has the capacity to produce 100,000 units of product per year. The fixed cost of…
A: Solution 1: As company anticipates producing and selling 80000 units, therefore company is having…
Q: If National Co. has calculated that it needs to sell 20,000 units in order to earn an after-tax…
A: No. of units need to sell to earn desired profit = (Desired profit before tax + Fixed costs) /…
Q: Kyle Inc. is planning to sell 197,500 units of Product K. The fixed costs are P1,200,000 and the…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: A firm has the capacity to produce 1,000,000 units of a product per year. At present, it is able to…
A: Break-even is the point wherein the company is in a situation of no profit no loss.
Q: Dave’s has total fixed costs of $45,000. If the company’s contribution margin is 50%, the income tax…
A: Units need to sell to produce to desired profit = (Fixed costs + Desired profit) / Contribution…
Q: For XYZ Company , how many units of their product would have to be sold to yield a target operating…
A: Contribution margin per unit = sales - variable costs = 60 - 50 = $10 per unit
Q: Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: If the company has a target profit of $15,000, how many units must be sold
A: Breakeven point: Breakeven point is the point at which the company makes no profit nor loss or it is…
Q: The following annual information is for Bressler Corporation: Product X Revenue per unit: $10.00…
A: Desired units = (Fixed cost + Net income /(1-tax rate))/Contribution margin per unit Total fixed…
Q: A company expects to sell 30,000 units of a product next year. Variable production cost is ₱25 and…
A: Units = 30,000 Selling price = P Sales = 30000*P = 30000P Variable cost = P 25 Variable cost =…
Q: George Manufacturing incurs annual fixed costs of P130,000 in producing and selling a single…
A: In first question , we need to calculate sale price per unit having a series of formulas defined in…
Q: Fronteeth Corp. plans to sell 500,000 units of a product at a price of P19.50 per Fixed costs for…
A: Gross profit = Sales - variable cost (or) profit before tax + fixed costs Given data Sales…
Q: plant operation has fixed costs of ₱2,000,000 per year, and its output capacity is 100,000…
A:
Q: the firm must have a sales price per unit of at least *
A: Fixed cost will not change with the change in the number of units sold. Profit = Sales - Variable…
Q: Boron Company will produce 2,500 boxes of batteries next year. Variable costs is 60% of sales,…
A: In this we have to calculate the sales price from operating income.
Q: Jack’s Jax has total fixed costs of $25,000. If the company’s contribution margin is 60%, the income…
A: Given that, total fixed costs of $25,000 company’s contribution margin is 60% the income tax rate…
Q: A furniture manufacturer has an annual overhead cost of P100,000 plus 20% of the sales in pesos.…
A: Let selling price be X. Sales will be 8000X. Variable cost per unit = Labor cost+Materials cost…
Q: Firm M expects to earn $210,000 next year after taxes. Sales will be $4 million. This firm makes…
A: Given Information: Sales = $4,000,000 Profits after taxes = $210,000 Sales per unit = $200 Variable…
Q: A product sells for ₱100 per unit and has a contribution margin of ₱45 per unit. Monthly fixed…
A: Unit price = P 100 Contribution per unit = P 45 Fixed cost = P 350,000 Loan amount = P 250,000…
Q: Lindon Company is the exclusive distributor for an automotive product that sells for $46.00 per unit…
A: Break-even analysis is a technique used widely by the management for decision-making. It helps to…
Q: The market price for a product has been $50 per unit, but competitive pressures have reduced…
A: Manufacturing costs: Manufacturing costs are the costs which are involved in converting the raw…
Q: Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit…
A: As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the answer…
Q: A company expects to sell 30,000 units of a product next year. Variable production cost is ₱25 and…
A: Number of units = 30,000 Variable Cost per unit = 25 Variable Production Costs = Variable Cost per…
Q: If a firm with $49,000 in fixed costs breaks even on 7,000 units, how many units must the firm sell…
A: Whenever sales generated and costs incurred within a specific period are equal, a corporation breaks…
Q: Assume that a firm produces an industrial product of a variable cost of $8,500 and has fixed costs…
A: Introduction:- A cost is the value of money spent on creating something or delivering a service that…
Q: Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit…
A: Old variable expense per unit = $40 x 70% = $28
Q: Mix Electronics purchases 2,400,000 units per year of a component with a purchase price of P50. The…
A: EOQ formula: EOQ = [2*d*s/h]^0.5 where d = annual quantity = 2,400,000 s = cost per order = 15 h =…
Q: Ratchet Ltd expects to sell 30,000 units this year. The selling price is set at $25 per unit. The…
A: Cost volume profit analysis is useful to find out the different sales volume on the basis of…
Q: A plant operating at 100% capacity (1000 kg product per year) has an annual net profit of $40,000…
A: Break even point(BEP)= Fixed cost/Contribution per unit Variable cost ratio + Contribution Ratio=…
Q: 1.The price of each boxes of cereals to be sold for Lithium Company to achieve an EBIT of P45,000 is…
A: answer given units = 50000 variable cost = 30% fixed cost = P70000 1. given , EBIT = P45000 EBIT =…
Q: Morris Company is the exclusive distributor for an automotive product that sells for P40 per unit…
A: Lets understand the basics. Break even point is a point at which no profit/no loss condition arise.…
Q: Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit…
A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…
Q: The National Inc. will produce 5,000 boxes of chocolates next year. Variable costs is 60% of sales,…
A: The correct calculation of the above question is given in the following steps for your reference.
Q: It costs the American Automobile Company $8,000 to produce each automobile, and fixed costs (rent…
A: We need to answer following questions: a) How many cars should be produced each week to maximize…
Q: A company has total fixed costs of 250,000 per annum. Its variable costs are 60% of sales and the…
A: Variable cost ratio = 60% So, Contribution margin ratio = 40% Contribution margin per unit = P8 x…
Q: AZ Humanade, Inc. expects to earn P150,000 next year after taxes on sales of P2,200,000. Stanley…
A: We know that under marginal costing Profit = Sales Revenue - Total Variable cost - Total Fixed…
Q: A company can generate a maximum sales of 825,000 a year. The variable cost ratio to sales is 55%…
A: Variable cost ratio = 55% So. Contribution margin ratio = 45% Desired sales = (128,430 + 168,570)…
Q: A corporation charges P30 per unit for their goods. The monthly unit variable cost is P22, while the…
A:
Q: Blossom Footballs, Inc., management expects to sell 15,000 balls this year. The balls sell for $105…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: Krismuch Co. estimated that the company can sell 200,000 units of a product next period and earn a…
A: The price of the product per unit = P14.7 Refer step2 for explanation
Q: A company expects to sell 20,000 units of a product next year. Variable production cost is ₱15 and…
A: Given, Target profit of the firm ₱100,000. Number of units 20,000. Fixed expenses ₱250,000.
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…
Q: Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs…
A: Breakeven units is the units where at those units there is no loss or no profit. Breakeven in units…
Q: Rusty, Inc. is the sole distributor of a computer product that sells for $50 per unit, and has a…
A: Marginal Costing - Marginal Costing is good method used to calculate cost of each additional unit…
Q: Blanchard Company manufactures a single product that sells for $180 per unit and whose total…
A: Income Statement is prepared under Matching Concept of accounting where all expenses are matched…
A firm has fixed costs of P200,000 and variable costs per unit of P6. It plans on selling 40,000 units in the coming year. If the firm pays income taxes on its income at a rate of 40 percent, what sales price must the firm use to obtain an after-tax profit of P24,000 on the 40,000 units?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- AZ Humanade, Inc. expects to earn P150,000 next year after taxes on sales of P2,200,000. Stanley manufactures only one product. The firm’s selling price is P8 a piece and with a variable cost of P2.40 a piece. Tax Rate is currently at 34%. REQUIRED: What are the firm’s expected fixed costs for next year? What is the breakeven point in units?A company expects to sell 20,000 units of a product next year. Variable production cost is ₱15 and variable selling costs is 15% of the selling price. Fixed expenses are ₱250,000 per year. The firm set a target profit of ₱100,000 (ignoring tax). Based on the information, the unit selling price should be? a. ₱17.50 b. ₱17.65 c. ₱32.50 d. ₱38.24 e. ₱216.67The Gomex Corp. sells product A for P90 each. Variable costs are P40 per unit. Fixed Costs are P585,000. Its current sales is P963,000. How much sales (in units) must be reached to realize a net income of P120,000 after income taxes, if tax rate is 25%?
- 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?Assume that a merchandiser purchases a product from a supplier for $3.00 per unit and then sells it to customers for $5.00 per unit. Ordinarily, the company sell 30,000 units per year; however, it is considering lowering its price to $4.50 per unit. At the lower price, the company expects to sell 49,250 units per year. What total contribution margin will the company earn if it sells 49,250 units at a price of $4.50 per unit? Multiple Choice $69,400 $73,875 $64,025 $83,725Bonaventure Manufacturing expects to earn P210,000 next year after taxes. Sales will beP4million. The firm manufactures a combined bookshelf and desk unit used extensively inuniversity dormitories. These units sell for P200 each and a have variable cost per unit of P150.Bonaventure experiences a 30% tax rate.a. Determine the firm’s fixed costs that are expected next year.b. Calculate the firm’s break-even point in both units and pulas.
- A company expects to sell 30,000 units of a product next year. Variable production cost is ₱25 and variable selling costs is 40% of the selling price. Fixed expenses are ₱650,000 per year. The firm set a target profit after tax of ₱250,000. Tax rate is 25%. Based on the information, the unit selling price should be?A company, subject to a 25% tax rate, desires to earn P600,000 of after-tax income. How much should the firm add to fixed costs when figuring the sales revenues necessary to produce this income level?The Warner Company sells its only product for P30 and the variable costs amount to P21 per unit. Fixed cost for each year is P270,000. Questions: 1. Assuming the desired profit for next year (if all costs and selling price remains the same) is placed at P90,000, what is the margin of safety in units? 2. What will be the projected sales in pesos with such desired profits of P90,000? 3. If instead, the desired profit is 5% of sales, how many units must be sold to achieve such?
- 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?UrTurn sells its products at P80 per unit with the unit variable cost of P55. Its fixed cost is P81,000. How many units must be sold to achieve the following (tax rate is at 40%) Suppose that its target pre-tax income is P50,000. The company is presently selling 5,000 units. To increase sales, the management is considering an advertising program that will cost P13,000. The management estimates that this will increase sales 500 units. What should be the minimum increase in sales (in units) so that the company could really consider advertising the product.A firm has fixed costs of P200,000 and variable costs per unit of P6. It plans on selling 40,000 units in the coming year. To realize a profit of P20,000, the firm must have a sales price per unit of at least * a. P11.00. b. P11.50. c. P10.00. d. P10.50.
