In 2019, Bramble sold 1000 units at $500 each, and earned net income of $40000. Variable expenses were $400 per unit, and fixed expenses were $290000. The same selling price is expected for 2020. Bramble's variable cost per unit will rise by 10% in 2020 due to increasing material costs, so they are tentatively planning to cut fixed costs by $10000. How many units must Bramble sell in 2020 to maintain the same income level as 2019? O 1000 3556 2667 O5333
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- Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $18,250 per year. The information they will use to consider these changes is shown here.In 2019, Vaughn sold 3000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $490000. The same selling price is expected for 2020. Vaughn is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is Vaughn’s break-even point in units for 2020? 2450. 2352. 2940. 1960.In 2020, National Co. sold 1,000 units at P500 each, and earned net income of P40,000. Variable expenses were P300 per unit, and fixed expenses were P160,000. The same selling price is expected for 2021. National Co.’s variable cost per unit will rise by 10% in 2021 due to increasing material costs, so they are tentatively planning to cut fixed costs by P10,000. How many units must National Co. sell in 2021 to maintain the same income level as 2020?
- In 2020, National Co. sold 3,000 units at P500 each. Variable expenses were P250 per unit, and fixed expenses were P150,000. The same selling price is expected for 2021. National Co is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is National Co.’s break-even point in units for 2021?In 2020, National Co. sold 1,000 units at P500 each, and earned net income of P40,000. Variable expenses were P300 per unit, and fixed expenses were P160,000. The same selling price is expected for 2021. National Co.’s variable cost per unit will rise by 10% in 2021 due to increasing material costs, so they are tentatively planning to cut fixed costs by P20,000 and to increase the selling price by P150. How many units must National Co. sell in 2021 to maintain the same income level as 2020? (round to whole number)Covid2020 Furniture is operating at almost 100% capacity. The company expects sales to increaseby 20% in 2020. To satisfy the demand for its products, the company is considering twoalternatives: The first alternative would increase fixed costs by 15% but not affect variable costs. The second alternative would not affect fixed costs but increase variable costs to 60% ofthe selling price of the company’s product.Covid2020 Furniture’s income statement for 2019 is as follows:Sales RM1,800,000Costs:Variable RM810,000Fixed RM165,000 RM975,000Income before taxes RM825,000REQUIRED:(a) Determine the break-even point in sales dollars for 2020 under the first alternative.(b) Determine the break-even point in sales dollars for 2020 under the second alternative.(c) Determine projected income before taxes for 2020 under each of the alternatives.(d) Which alternative would you recommend? Why?
- In 2019, Crane Company sold 3000 units at $250 each. Variable expenses were $140 per unit, and fixed expenses were $780000. The same variable expenses per unit and fixed expenses are expected for 2020. If Crane cuts selling price by 4%, what is Crane’s break-even point in units for 2020? 7386. 7091. 7500. 7800.In 2018, the company's sales was P 500,000. Its fixed costs amounted to P 100,000 per year. In 2019, sales was 20% higher, while profit was P 30,000 higher than the 2018 profit. For 2020, the company expects to have sales that is twice as much as the 2018 sales. The expected increase in production to meet the sales demand in 2020 will not require the company to exceed its normal capacity. a. What is the company's contribution margin ratio? b. How much profit does the company expect to eam in 2020?In 2020, National Co. sold 3,000 units at P500 each. Variable expenses were P350 per unit, and fixed expenses were P195,000. The same variable expenses per unit and fixed expenses are expected for 2021. If National Co. cuts selling price by 4%, what is National Co.’s break-even point in units for 2021?
- Dalen Company prepared the following preliminary forecast concerning Product D for 2019 assuming no expenditure for advertising (refer to the attached picture): Based on a market study, Dalen estimates that it could increase the unit selling price by 15% and increase the unit sales volume by 10% if P100,000 was spent in advertising. Assuming that Dalen incorporates these changes in its 2019 forecast, what should be the operating income for Product D? selling price per unit 10 unit sales 100000 variable cost 600000 fixed cost 300000Cullumber Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,990 units Sales price $40 per unit Variable costs $20 per unit Fixed costs $35,880 If the company wishes to increase its total dollar contribution margin by 30% in 2020, by how much will it need to increase its sales if selling price per unit, variable price per unit and total fixed costs remain constant? Total increase in sales required:In 2016, Carow sold 3,000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $500,000. The same selling price is expected for 2017. Carow is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is Carow’s break-even point in units for 2017?