Racine Tire Co . manufactures tires for all-terrain bicycles , The tires sell for P60 and variable cost per tire is P45 ; monthly fixed cost is P450 , 000 . Required: If the company can increase sales volume by 15 percent above the current level ,8 , 400 , 000 tires monthly What will be the increase in net income ?

Racine Tire Co . manufactures tires for all-terrain bicycles , The tires sell for P60 and variable cost per tire is P45 ; monthly fixed cost is P450 , 000 . Required: If the company can increase sales volume by 15 percent above the current level ,8 , 400 , 000 tires monthly What will be the increase in net income ?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3BE

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Company XYZ produces and sells 4,000 units.at this level, the company is making a profit of $20,000. Assuming total fixed expenses of $1,000 and variable expenses per unit of $0.75, how much was the selling price per unit? O a. 3 O b. 8 O c. O d. 4 O e. 6 S PAGE NEXT PAGE 14:10 to search A O 40) ENG 15-04-2021 hp art sc delete home end 144 %23 24 & num + backspace 6. 8 lock 7 V 8 A U home 1 48 5 0 enter D G K pause ↑ shift 11 C M end alt ctrl
Q1. Sales (30,000 units) Tk.15,00,000 Tk.50 Variable Expense 12,00,000 40 Contribution Margin 300,000 Tk. 10 Fixed Expenses 220,000 Net Operating Income 80,000 Required: Compute the company’s CM ratio and variable expense ratio. Compute company’s Break Even Point in both unit sales and dollar sales. Use the formula method. How many units would have to be sold each month to earn a target profit of Tk.80,000? If sales increase by Tk.350,000 next year and there is no change in fixed expenses, by how much would you expect net operating income to increase? Refer to original data. Compute company’s margin of safety in both dollar and percentage form. 6. Compute company’s degree of operating leverage at present level of sales. 7. If sales increase by 7.5%, by what percentage would you expect net operating income to increase?
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Siper - kes each in the Company plans to sell 19,000 tshirts at Sile coming year. Poduct Costs inalud. Pirut maknals per T- shit Cー75 ... Direct dabor per T-uhirt 41. 24 per F shirt total frxed facto ny orer head Vanoble orerhe ad do-60 943,000 Vamable expente seling is edemphon of a the Coupon which arerages so ko $0.80 per Trohirt; fixed selling and administrafive speses total $ 19,000 Required: 1 Calanlate the Voriable pholucd ast unit per vnit podrct b. Tofal vana ble cast per Contribution mangin uhit C. per. ratio (unded to four dignificun d. Contri bution nargin for the year. 1. tpbl fired fotal expen F
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Choose the correct letter of answer At a price of P12 the estimated monthly sales of a product is 10,000 units. Variable costs are P7 per unit. Fixed costs are P24,000 per month. How much is the margin of safety? a. P24,000b. P67,600c. P120,000d. P52,400
Umbridge Purses Unlimited sells purses with a sales price of $25.00 each. Each purse costs the company $20.00 to produce, and the store incurs a total of $210,000 in fixed costs each year. What is the yearly breakeven point in units? Select one: O O C a. 10,500 purses b. 21,000 purses c. 8,400 purses d. 42,000 purses e. None of these options are correct.
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Question 4 Auto Tires, Inc. sells tires to service stations for an average of $145 each. The variable costs of each tire is $85 and monthly fixed manufacturing costs total $45,000. Other monthly fixed costs of the company total $15,000. Note: No need to enter comma between number Required: 1. What is the break-even level in tires? 2. What is the margin of safety, assuming sales total $190,000? 3. What is the break-even level in tires, assuming variable costs increase by 20 percent and selling price increase by 17 per unit ? 4. What is the break-even level in tires, assuming the selling price goes up by 20 percent, fixed manufacturing costs decline by 10 percent and other fixed costs decline by $1500and variable cost decrease by 1 per unit ?
The Warren Watch Compony sells watches for $25, fixed Costs are $170,000, and variable costs are $15 per watch! watchili 1 ngay 20 a) What is the firm's gain or loss at sales st. of 10,000 watches & Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent. $ NOM MAX 250 Seb(2 Bek What is the firm's gain or loss at sales of 18,000 watches? Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent. ( st b) What is the break-even point Cunit sales)? Round your answer to the nearest whole number. Slow EHMNY 2.3
Mazoon Company has fixed costs of $15,000 and a breakeven point of 600 units. If the company plans to produce 750 units, and sales increase by 10%, its operating income will increase by: O a. 60% O b. 50% O c. None of the given answers O d. 20% O e. 30% EVIOUS PAGE NEXT PAGE Esc FI F8 F10 FnLock F5 @ %23 & 1 3 4 6 7 of T J K 1. C BYNI M Alt つ