Determinant Company is a price−taker and uses a target−pricing approach. Refer to the following information: Production volume 602,000 units per year Market price $34 per unit Desired operating income 17% of total assets Total assets $13,800,000 What is the target full product cost in total for the year? Assume all units produced are sold. Question content area bottom Part 1 A. $13,800,000 B. $18,122,000 C. $2,346,000 D.$ 102, 340
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approach. Refer to the following information:
Production volume
|
602,000
|
units per year
|
Market price
|
$34
|
per unit
|
Desired operating income
|
17%
|
of total assets
|
Total assets
|
$13,800,000
|
|
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- Exercise 1: Company B has the following information for the year 20XO: Sold units Sales price per unit Unit variable cost Total fixed cost (interest cost of $160,000 included) Operating assets at the beginning of the year Operating assets at the end of the year Requirements: 50,000 $160 $96 1,360,000 $18,000,000 $22,000,000 a. Calculate the ROI for the year. b. Given that the minimum required rate was 8% per year, calculate the RI for the year. c. In 20X1, an improvement is taken in order to save the direct material cost. A saving of $200,000 is achieved. With the other information remains unchanged, calculate the ROI of 20X1.Matamad Inc. Provides you with the following data on its operation for analysis:Unit selling priceP40Variable costs and expenses per unit.P30Fixed cost and expenses per annum.P48,000REQUIRED:a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salese. Peso sales with desired income of P9,000f. Peso sales with desired income P13,000 after 32% income taxQuestion 1: Muscat Company has the financial information given in the table for the year ended on 30 September 2021. It is assumed that volume of production and volume of sales are equal. According to the information given, you are required to calculate the following; a) Break-even point (in units and amount) b) PV ratio c) Margin of Safety (as percentage) amount and as OMR Sales (actual) 1,600,000 Total fixed cost 900,000 Selling price per unit 375 Variable cost per unit 225
- A company has following details for this yearDetails Total sales($) Total cost($) Details Total sales($) Total cost($)Year ended 31/12/2018 35,78,998 25,89,709Year ended 31/12/2019 48,90,742 31,67,984 Calculate P/V ratio, Fixed cost, break even sales, Margin of safety 2018/2019, Variable cost 2018/2019and percent of fixed cost 2018/2019II. George Corporation has the following information for the current year: Selling price per unit Variable costs per unit Fixed costs Required: Prepare a cost-volume-profit graph identifying the following items: Total fixed costs line Total variable costs line Total costs line Total revenues line Breakeven point in sales dollars Breakeven point in units A. B. C. D. E. F. G. H. Dollars (S) Profit area Loss area 6,000 5,000 4,000 3,000 2,000 1,000 S 10.00 6.00 S $1,000.00 0 100 200 300 400 Qty (# Units) 500Breakeven analysis and target profit, taxes, what - if analysis Pome Company produces a single product: the Core. The .....$30 Materials cost. . . 7 following table provides the Core's details: Per unlt Selling price. Labor cost. . . . . . . 6 Variable overhead cost. . . . . 2 Sales commissions. . . . . . . . 10% of selling price for the upcoming year, Pome Company expects to sell 500,000 units of the Core, have total fixed costs of $ 4,500,000, and face a tax rate of 30% of income. (c) The marketing manager believes that if the Core's price is cut by $2 unit, sales will increase by 10% . Is this change desirable from a financial perspective? (d) Ignore part (c) when answering this question. The production manager believes that if Pome Company rents a new machine, total manufacturing variable costs (materials, labor, and overhead) per unit will each drop by 10%. What is the annual rent for this machine so that the income with this machine will equal the income in part (a) = $1050000
- Compute for what is being asked1. Unit selling price P800 unit variable cost P350 annual sales volume, 620 units, fixed costs and expenses P200,000 per year. Compute the following.a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salee. Operating income (BIT)using the break even salef. Operating income (EBIT) using the annual sales volume11. George Corporation has the following information for the current year: Selling price per unit Variable costs per unit 10.00 $ 6.00 $1,000.00 Fixed costs Required: Prepare a cost-volume-profit graph identifying the following items: Total fixed costs line Total variable costs line Total costs line Total revenues line Breakeven point in sales dollars Breakeven point in units Profit area Loss area А. В. С. D. E. F. G. Н. 6,000 5,000 4,000 3,000 2,000 1,000 100 200 300 400 500 Qty (# Units) 3 Dollars ($)Multiproduct breakeven analysis and target profit, taxes Pursuit Company produces two products: Bric and Brac. The following table summarizes the products' details and planned unit sales for the upcoming period: Bric BrAc Sellingpriceperunt...........$S25$30 Variablecostperunit ... $14$17 Planned unit sales volume . . . . . . 800, 000 400,000 Pursuit Company has total fixed costs of $10 million and faces a tax rate of 30%. Required (a)What is Pursuit Company's expected profit at the planned level of sales? (b)Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to break even? (c) Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to earn an after-tax income of $910, 000 ?
- Question 1: Salalah Company has the financial information given in the table for the year ended on 31 December 2020. Calculate the following a) Break-even point (in units and amount) b) PV ratio e) Margin of Safety (as amount and as percentage) OMR Sales (actual) 800,000 450,000| Total fixed cost Selling price per unit 275 Variable cost per unit 125Question 1: A company produces and sells two products with the following costs: Product X Product Y Variable costs per Br. of sales Fixed costs per period Br.0.45 Br.1 212 000 Br.0.6 Br.1 212 000 Total sales revenue is currently generated by the two products in the following proportions: Product X 70% Product Y 30% Required: Calculate the break-even sales revenue per period, based on the sales mix assumed Prepare a profit–volume chart of the above situation for sales revenue up to Br.4 000 Show on the same chart the effect of a change in the sales mix to product X 50%, product Y 50%. Clearly indicate on the chart the break-even point for each situation. Of the fixed costs 455 000 are attributable to product X. Calculate the sales revenue required on product X in order to recover the attributable fixed costs and provide a netcontribution of Br.700 000 towards general fixed costs and profit.A company has assessed the profitability of its three products as shown here: Product A Product B Product C Total Sales (units) 3,000 5,000 2,000 10,000 £ £ Price 15.00 10.00 5.00 Variable costs 6.00 4.00 3.00 Divisible fixed costs 2.00 1.00 0.50 Non-divisible fixed costs 2.00 2.00 2.00 Profit/(Loss) 5.00 3.00 (0.50) As a result of this, it has been suggested that Product C should be dropped. All other things being equal what would be the financial impact of dropping Product C? A B Profit would increase by £1,000. Profit would increase by £2,000. Profit would fall by £3,000. C D Profit would fall by £4,000. £