7. Thomas Company sells products X, Y, and Z. Thomas sells 3 units of X for each unit of Z, and 2 units of Y for each unit of X. The contribution margins are P1.00 per unit of X, P1.50 per unit of Y, and P3.00 per unit of Z. Fixed costs are P600,000. How many units of X would Thomas sell at the break-even point? a. 40,000 b. 120,000 c. 360,000 d. 400,000 e. None of these%; answer is

7. Thomas Company sells products X, Y, and Z. Thomas sells 3 units of X for each unit of Z, and 2 units of Y for each unit of X. The contribution margins are P1.00 per unit of X, P1.50 per unit of Y, and P3.00 per unit of Z. Fixed costs are P600,000. How many units of X would Thomas sell at the break-even point? a. 40,000 b. 120,000 c. 360,000 d. 400,000 e. None of these%; answer is

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
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Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
7. Thomas Company sells products X, Y, and Z. Thomas sells 3 units of X for each unit of Z, and 2 units ofY for each unit of X. The contribution margins are P1.00 per unit of X, P1.50 unit of Y, and P3.00 per unit of Z. Fixed costs are P600,000. How many units of X would Thomas sell at the break-even point? a. 40,000 b. 120,000 per c. 360,000 d. 400,000 e. None of these; answer is 8. Day Mail Order Co. applied the high-low method of cost estimation to customer order data for the first four months of 2020. What is the estimated variable order filing cost component per order? Orders 1,200 1,300 1,800 1,700 Costs January February Р3,120 3,185 March 4,320 3,895 April a. P2.00 с. Р2.48 e. None of these; b. Р2.42 d. P2.50 answer is 9. Sender, Inc. estimates parcel mailing costs using data shown on the chart next page:
NUBD Company sells products X, Y and Z. NUBD sells three units of X for each unit of Z, and two units of Y for each unit of X. The contribution margins are P1.00 per unit of X, P1.50 per unit of Y, and P3.00 per unit of Z. Fixed costs are P600,000. How many units of X would NUBD sell at the break-even point?
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Versa Inc. sells a product for $100 per unit. The variable cost is $75 per unit, and fixed costsare $45,000. Determine (a) the break-even point in sales units and (b) the break-even point insales units if the company desires a target profit of $25,000.
NUBD has fixed cost of P200,000. It has two products that it can sell, X and Y. NUBD sells these products at the rate of three units of X to one unit of Y. The contribution margin is P6 per unit of X and P3 per unit of Y. How many units Y would be sold at break-even point? A. 40,000 B. 50,000 C. 10,000 D. 100,000
NUBD Co. sells two products, Avon and Bona. The company sells these products at the rate of 2 units of Avon and 3 units of Bona. The contribution margin per unit of Avon is P4 and of Bona is P2. The total fixed costs is P420,000. The selling price of Avon is P10 and Bona is P8. 4. Break even point in sales 5. Break even point in pesos for Avon 6. Break even point in pesos for Bona