2. What would be the operating profit if the tuition per student (that is, sales price) decreased by 8 percent? Increased by 24 percent? 3. What would be the operating profit if variable costs per student decreased by 11 percent? Increased by 15 percent? 4. Suppose that fixed costs for the year are 8 percent lower than projected, whereas variable costs per student are 5 percent higher than projected. What would be the operating profit for the year?

Q: Suppose that the profit for firms that are already present in an industry is $200, the cost of entry…

A: As new enterprises enter the market, prices decrease, and profits fall, the supply curve shifts to…

Q: Required: a. What will be the operating profit? b. What is the impact on operating profit if the…

A: a) Operating profit: An operating profit is the profit from business operations( gross profit -…

Q: How do you compute the monthly margn of safety in dollars if the  shop has a monthly target profit…

A: Given that: Target profit = $54000 Variable costs = 20% of sales Fixed costs = $18000

Q: 1. What is the breakeven point in dollars if annual fixed costs are 114,000 and Cost to Overhead is…

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: Assume that you are the president of your compar year-end bonus according to the amount of net ine…

A: The cost flow assumption behind the first in, first out (FIFO) approach of inventory valuation is…

Q: You see an estimate that hourly wage rates will increase by 6 percent next year. What other…

A: An Operating Profit Margin seems to be an estimate about just how much money a firm will have…

Q: 1. What is the present yearly net operating income or loss? 2. What is the present break-even point…

A:

Q: If a firms expected sales are $256,000 and its break-even sales are $193,000, what will the margin…

A: Margin of safety: The margin of safety indicates how much a company’s sales level can drop before it…

Q: 6. The sales and profit for two years are as below: Sales Profit Sales Profit 2002 150000 20000 2003…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: b) Newcastle Ltd manufactures and sells T-shirts imprinted with college names and slogans. Last…

A: Contribution margin = selling price - variable cost Net operating profit   = Contribution margin -…

Q: C. How much would income from operations increase if same-store sales increased by $500 million for…

A: Contribution Margin: It is defined as the difference between the sales and the variable cost.…

Q: When prices are rising, would you choose a FIFO or weighted average cost flow assumption? Explain,…

A: Cost Flow Assumptions: It is an assumption that determines the way or order in which the costs…

Q: 5. The sales manager is convinced that a 13% reduction in the selling price, combined with a $77,000…

A: CVP analysis: Cost Volume Profit analysis is a method of cost accounting used to analyse the cost…

Q: If Mirabel invests the additional $650,000 in fixed marketing expenses, sales of the Model 301 are…

A: Cost accounting is regarded as the method used by a manufacturing business in order to estimate the…

Q: |The cost per unit of producing a product is 60 + 0.2x dollars, where x represents the number of…

A: Revenue: It is the income earned by a business in the course of its regular business activities.…

Q: Sandhill’s managers have determined that variable costs per unit will increase by 20% beginning next…

A: Operating income represents the income of the company that is earned due to the operations of the…

Q: Suppose that there is a customer expected to annually generate $1,500 of gross contribution. With…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: 4. What is Reagan's current contribution margin and operating income? Current contribution margin…

A: Degree of operating leverage = Contribution margin / operating income     If sales increases by…

Q: With a margin of 120 million of a base year that grows at 10%, some commissions collected of 205…

A: Calculate the margin in the following year (Margin T+1) by multiplying the margin in the base year…

Q: I have the following additional questions: 1) Calculate the breakeven point in dollars under the…

A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: A company has return on sales of 20%, income of $50,000, selling price of $10, and a contribution…

A: A cost accounting system is a system of accounting that is helpful for the internal management to…

Q: The variable expenses of wearable air purifiers last year amounted to Php500,000. The entrepreneur…

A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…

Q: Last year, variable expenses were 60% of total sales and fixed expenses were 10% of total sales, If…

A: Contribution Margin   It represents the excess of sales over its variable cost. It judges whether…

Q: The manufacturer of a product had fixed costs of $120,300 per year. The variable costs are 50% of…

A: Break-even analysis is the easiest form of cost-volume-profit analysis. Break-even analysis is used…

Q: Suppose that you expect a ceteris paribus decrease in average incomes of 10% this year compared to…

A: Ceteris paribus, which literally means "keeping other things constant," seems to be a Latin…

Q: f. If the selling price increases by $4 per unit and the sales volume decreases by 200 units, what…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: )Farmers World, a firm specializing in fertilizers, is evaluating a proposal to relax the credit…

A: Comment - We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: The prices of its products average $20 per unit, and variable costs average $18 per unit. If the…

A: Credit sale can be defined as the business transaction where the goods are sold on credit to the…

Q: In the upcoming year, NUBD estimates that it will produce and sell 4,000 units. The variable costs…

A: Margin of safety = Current sales - Breakeven sales

Q: What will be the new contribution if the sales increase by 20%?

A: Contribution: It is the part of the revenue not spent by variable cost.  It is computed by reducing…

Q: Assume that the projected costs and benefits for this project are spread over four years as follows:…

A: A corporation goes through various projects and investments in its life and has to decide from time…

Q: 2) Milton Company's projected profit for the coming year is as follows:…

A: C ) Sales unit of Milton Company at projected level = $ 200000 / $ 20 = 10000 unit If Milton Company…

Q: Due to an increase in labour rates, the company estimates that variable costs will increase by €3…

A: Revenue refers to the whole income which the business generates from the operations or activities…

Q: Sharpe Knife Company expects sales next year to be $1,620,000 if the economy is strong, $860,000 if…

A: Expected level of sales can be calculated as the sum of product of probability of respective…

Q: the company's sales volume in pounds must be:

A: Operating profit is the income generated by the company through its daily operating activities. The…

Q: Sanchez, Incorporated, is considering a change in its cash-only sales policy. The new terms of sale…

A: Net present value (NPV)  is the present value of all the future benefits minus the initial cost .…

Q: By using excel, you are given the following data to calculate the Internal Rate of Return (IRR) of a…

A: Annual Income =€455,000 Purchase Rent = €585,000  Rent Review every three years - Rent Review Cost =…

Q: nse was £4.50 per unit. The company needed to sell 20,000 of stationary to break even. The operating…

A: To calculate the sale volume of the coming year , the sale of current year has to  be calculated.…

Q: Banana Company's outside marketing consultant prepared the following probability distribution…

A: Probability can be defined as the branch of mathematics that concerns with the numerical…

Q: If a company wishes to extend credit standards in order to increase its sales and generate…

A: The question is related Management of Receivables and is related to evaluation of credit policy. The…

Q: Q4 From the following data, calculate: (a) PIV Ratio. (b) Profit when sales are OMR 40000. (c) New…

A: Break-even sales represent that particular point of sale where there is no operating profit/loss. If…

Q: Last year, the contribution margin ratio of Lamesa company was 30%. this year, fixed costs are…

A: The contribution margin is calculated as difference between sales and variable costs.

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: A product sells for $30 per unit and has variable costs of $20 per unit. The fixed costs are…

A: Expected Contribution margin per unit = Expected sales price per unit - Expected variable cost per…

Q: If the selling price per unit is $50, the variable expense per unit is $20, and total fixed expenses…

A: The Break-even point is the point where the company is able to cover all its costs but does not make…

Q: The Crash Davis Driving School has an ROE of 13.5 percent and a payout ratio of 34 percent.   What…

A: A sustainable growth rate can be defined as the maximum growth rate a company can achieve without…

Q: An investment with total costs of $10,000 will generate total revenues of $11,000 for one year.…

A: An investment with total costs of $10,000 will generate total revenues of $11,000 for one year.…

Q: determined that sales will increase by 25% next year, and that the profit margin will remain at 15%…

A: Sales is a transaction between two or more parties in who is the buyer received tangible or…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.