Artis Sales has two store locations. Store A has fixed costs of $205,000 per month and a variable cost ratio of 55%. Store B has fixed costs of $ 380,000 per month and a variable cost ratio of 30 % . At what sales volume would the two stores have equal profits or losses?
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- Megacorp and Gadgetron are two competing gadget manufacturers. Information about the price and cost structures of the two manufacturers are given below. Megacorp Gadgetron Selling price per unit 160 160 Variable cost per unit 110 80 Fixed cost per month 46,000 100,000 Required: Calculate the sales volume that will result in Megacorp and Gadgetron having the same operating profit. Prepare a profit-volume graph by plotting profit as a function of the sales volume.Hint: Identify the point where sales volume is zero (i.e., fixed cost on y-intercept) and the break-even point (i.e., x-intercept where profit is zero) and connect the dots.White Lake Inc. produces and sells a single product. Data concerning that product appear below: Selling price per unit $ 230.00 Variable expense per unit $ 103.50 Fixed expense per month $ 518,650 Required: a. What is the minimum amount of sales revenues in dollars to break even? b. Assume the company's monthly target profit is $12,650. Determine the number of units that White Lake needs to sell to attain this target profit?Jaffre Enterprises distributes a single product whose selling price is $16 and whose variableexpense is $11 per unit. The company’s fi xed expense is $16,000 per month.Required:I. Prepare a profit graph for the company up to a sales level of 4,000 units.II. . Estimate the company’s break-even point in unit sales using your profit graph.
- Coney Adventures Inc. sells one product for $5. The variable cost per item is $3, and the fixed costs for the firm are $40. Compute the breakeven point in units. Compute the number of units and sales revenue needed to achieve a $20 profit. (Ignore income taxes.) Assume that the income tax rate for Redlands is 40%. Compute the number of units and sales revenue needed to achieve an $18 net profit. Compute the number of units and sales revenue needed to achieve an 8% profit margin. (Ignore income taxes.)In a cost-volume-profit analysis, explain what happens at the break-even point and why companies do not want to remain at the break-even point. Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The company’s monthly fixed expenses are $36,000. A. What is the company’s break-even point in units? B. What is the company’s break-even point in dollars? C. Prepare a contribution margin income statement for the month of November when they will sell 130 units. D. How many units will Marlin need to sell in order to realize a target profit of $48,000? E. What dollar sales will Marlin need to generate in order to realize a target profit of $48,000? F. Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.Radison Enterprises sells a product for $92 per unit. The Costs that vary in total dollar amount as the level of activity changes.variable cost is $59 per unit, while Costs that tend to remain the same in amount, regardless of variations in the level of activity.fixed costs are $223,245. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $100 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $100 per unit units
- Halifax Products sells a product for $118. Variable costs per unit are $67, and monthly fixed costs are $168,300. a. What is the break-even point in units? Break-Even Point units b. How many units would need to be sold to earn a target profit of $102,000? Total Required Sales units c. Assuming they achieve the level of sales required in part b, what is the margin of safety in sales dollars? Margin of SafetyJaffre Enterprises distributes a single product whose selling price is $16 and whose variable expense is $11per unit. The company’s fixed expense is $16,000 per month.Required:1. Prepare a profit graph for the company up to a sales level of 4,000 units.2. Estimate the company’s break-even point in unit sales using your profit graph.Karlik Enterprises distributes a single product whose selling price is $24 and whose variable expense is$18 per unit. The company’s monthly fixed expense is $24,000.Required:1. Prepare a cost-volume-profit graph for the company up to a sales level of 8,000 units.2. Estimate the company’s break-even point in unit sales using your cost-volume-profit graph
- Mark Pro produces and sells a single product. Information on its costs follow: Variable costs: SG&A P2 per unit Production P4 per unit Fixed costs: SG&A P12,000 per year Production P15,000 per year 1. Refer to Mark Pro. Assume Mark Pro produced and sold 5,000 units. At this level of activity, it produced a profit of P18,000. What was Mark Pro sales price per unit? 2. Refer to Mark Pro. In the upcoming year, Mark Pro estimates that it will produce and sell 4,000 units. The variable costs per unit and the total fixed costs are expected to be the same as in the current year. However, it anticipates a sales price of P16 per unit. What is Mark Pro 's projected margin of safety for the coming year?Baker Company has a product that sells for $20 per unit. The variable expenses are $12 per unit, and fixed expenses total $30,000 per year. Compute for the following:a. Total contribution margin at the break-even pointb. Contribution margin ratio for the productc. If total sales increase by $20,000 and fixed expenses remain unchanged, by how much would net operating income be expected to increase?d. The marketing manager wants to increase advertising by $6,000 per year. How many additional units would have to be sold to increase overall net operating income by $2,000?Stellar Company has the following sales, variable cost, and fixed cost. If sales increase by $10,000 then their profit increases/ decreases by how much? Sales $50,000 Variable Costs $7,500 Fixed Costs $28,000