John makes and sells a product which has a variable cost of £60 and sells for £80 per unit. Budgeted fixed costs are £140,000 and budgeted sales are 16000 units. Required: What is the breakeven point and margin of safety?
Q: Schwert Corp. shows the following information on its 2015 income statement: Sales = $215,000; COGS=…
A: Cash flow statement is one of most important financial statement. Cash flow statement have three…
Q: View Policies Current Attempt in Progress Wildhorse Supply Co. has the following transactions: Nov.…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Shown here is an income statement in the traditional format for a firm with a sales volume of 8,000…
A: "Contribution margin tells you the aggregate amount of revenue available after variable costs to…
Q: The following events occur for The Spanaccio Corporation during 2024 and 2025, its first two years…
A: Working Notes: 1. Bad debts expense = (Accounts receivable - Cash collected ) x 40% = ($32,600 -…
Q: shades of the Caribbean design and manufactur ecords of the business reflect the following data a…
A:
Q: use of a new product to improve profitability. the following data in order to assist Bella Limited…
A: The break even sales are the sales where business earns no profit no loss during the period. The…
Q: On entity enters into a contract to transfer Products A and B to a customer in exchange for P1,000.…
A: As per the Honor code of Bartleby we are bound to given the answer of first question only, Please…
Q: Windsor Inc. issued $3,840,000 of 11%, 10-year convertible bonds on June 1, 2020, at 99 plus accrued…
A: The following information given in the question: 1. Issued $3,840,000 of 11%, 10-year convertible…
Q: Use the information in the following trial balance to prepare a balance sheet for Red Inc. as of…
A: Balance Sheet :— It is one of the financial statement that shows list of final balances of assets,…
Q: Required: a. Prepare a statement of cash flows in good form, including all required disclosures…
A: Cash Flow Statement A financial document called the cash flow statement (CFS) outlines the inflow…
Q: Q.69. Sonic Inc., a manufacturer of power tools, decides to offer a rebate of $120 on its…
A: Answer:- Rebate meaning:- A rebate discount is a type of discount offered by the business to draw…
Q: Identify two important pieces of information that should be included in the borrower's credit…
A: Every individual as well as the business sometimes falls in a position in which there has to be…
Q: C3 Nelson Co has a taxation year end of December 31. On January 1, 2022 the UCC of Class 8 was…
A: Assets An asset is a resource having economic worth that a person, organization, or nation…
Q: [The following information applies to the questions displayed below.] Valley Company's adjusted…
A: Working notes: 1. Income Summary = $280,440 (sales) -$249,355 ( all Debit balances) = $31,085
Q: Cullumber Industries had the following inventory transactions occur during 2022: Feb. 1, 2022 Mar.…
A: Under LIFO method, cost of goods sold is based on latest or last purchases. Periodic inventory…
Q: ivable Equipment ated Depreciation Short Retail Stores nd Equity ble ck ($10 par value) ue ings…
A: Basic EPS refers to the concept of assigning the desired sum value of a company profit to its one…
Q: You want to make five annual payments of $6,000 beginning now in order to accumulate $35,000 for a…
A: We can answer this question using 'Future value of annuity ' equations. Future value of annuity =…
Q: 5. A man wishes to have P 35,000.00 when he retires 15 years from now. If he can expect to receive…
A: Time Value of Money :— According to this concept, value of money in present day is greater than the…
Q: your net worth
A: The net worth refers to the total wealth of any individual or company. It is very important to…
Q: Amir also needs to calculate the commissions paid each month. If the company earns $275,000 or more…
A: Commission is the expenses to the company and which are paid to the employees or the marketers of…
Q: What are organizational costs?
A: Organizational costs are those that are incurred as starting expenses or one-time charges, such as…
Q: Last year, Hever Inc. had sales of $936,000, based on a unit selling price of $390. The variable…
A: 1. Construct a cost-volume-profit chart on your own paper, indicating the break-even sales for last…
Q: June Cleaver owns and operates a home goods store in Chicago, Illinois. She recently acquired a new…
A: Asset classification seems to be a technique for categorising assets according to a set of standard…
Q: initial investment: 400,000,000 unit revenue: 920,000 unit cost: 460,000 find the break even…
A: BREAKEVEN POINT Breakeven means the volume of production or sales where there is no profit no…
Q: Can you explain b more? I'm not entirely comprehending it.
A:
Q: *P6.8A (LO 5) Dempsey Inc. is a retailer operating in British Columbia. Dempsey uses the perpetual…
A: FIFO Method:— Under this method, First input is used firstly for sales units or output units. It is…
Q: Margin of Safety a. If Canace Company, with a break-even point at $325,000 of sales, has actual…
A: The margin of safety is the sales level over and above break-even sales. Margin of safety determines…
Q: Data concerning a recent period's activity in the Prep Department, the first processing department…
A: Solution: Cost per equivalent unit : Material = $13.86 Conversion = $ 4.43 Materials Conversion…
Q: MaxiCare Corporation, a not-for-profit organization, specializes in health care for senior citizens.…
A: Steps to Use Goal Seek Analysis: Step 1 - Go to What-If Analysis in the Data Step 2 - Select Goal…
Q: ACCOUNTING 308 TAX RETURN PROJECT #1 Lance H. and Wanda B. Dean are married and live at 431 Yucca…
A:
Q: why would the company sell both pistachios and oranges instead of only pistachios?
A: CVP Analysis stands for Cost Volume Profit analysis. Under this, decisions are taken by Business…
Q: For Bere Cojournalize and post the entry on August 1, and the adjusting entry on November 31.
A: ANSWERS. Date Accounts and Explanations Debit Credit August 1 Prepaid insurance 10,000…
Q: Illustration of the mechanics of the shenanigan, using actual or hypothetical Journal entries
A: Shenanigan Financial dealings are actions intended to conceal a company's or an entity's actual…
Q: Which of the following is an advantage of rent (over home ownership) O a. Household stability b.…
A: In case of multiple questions, we are allowed to solve only the first question. If you want other…
Q: valence of the shenanigan: the extent to which it is common or rare (explain your answe
A: Shenanigan is common practice in the accounting or finance being adopted by the financial managers…
Q: Mason (single) is a 50 percent shareholder in Angels Corporation (an S Corporation). Mason receives…
A: Income Tax Taxes at the federal and state levels are imposed on the income of people, businesses,…
Q: Siblings William and Harry own a castle as Joint Tenants with Rights of Survivorship. William…
A: Answer:- Joint tenants with right of survivorship meaning:- Co-owners have the right to live in a…
Q: At the start of 2022, Croton's Debt Service Fund had no assets or liabilities. Prepare journal…
A: General Fund: "General Fund" is fund kept aside for the development or for the purchasing the fixed…
Q: The beginning inventory of a particular product, and the purchases during the current year were as…
A: Lets understand the basics. In average cost basis inventory valuation, cost per unit for determining…
Q: Of the following, which is the most ‘Discretionary”? Accounts Payable Inventory Research…
A: A discretionary expense is a cost that a business or household can survive without, if necessary.…
Q: Builder Products, Incorporated, uses the weighted-average method in its process costing system. It…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Direct labor-hours required to support estimated production Machine-hours required to support…
A: TOTAL MANUFACTURING COST Manufacturing OH include all Direct Cost Such as Direct Material, Direct…
Q: What are the weaknesses of capital market research?
A: Capital market is the market in which securities are traded. Primary market and secondary market are…
Q: On January 1, 20x1, Patience Co. issued 10%, 3-year, P2,000,000 convertible bonds at 105. Each 1,000…
A: Introduction: Journal entries are short pieces of writing that will take up space in a journal or…
Q: You have been asked to develop a pro forma statement of cash flow for West Office Plaza. The…
A: Proforma income statement Cash Inflows Rental income $10,020,000 Other income…
Q: What is the breakeven point? What is the company's range of profitable output?
A: Given in the question: Variable Cost $40 Per Unit Fixed Cost $1,000 Per Month…
Q: ts) Which principle has FASB used to determine the accounting method for recordin elopment costs? 4…
A: There are specific methods of accounting for different activities and there is specific method of…
Q: I need help recording the transactions for this month into closing entries. The table I need to put…
A: Closing entries refers to those entries which are recorded at the end of the accounting period. The…
Q: F COMPANY, organized on March 1, 2021, has a very poor internal control system. The company's…
A: There are several advantages to conducting a cash audit. Firstly, it can help to prevent and detect…
John makes and sells a product which has a variable cost of £60 and sells for £80 per unit. Budgeted fixed costs are £140,000 and budgeted sales are 16000 units.
Required:
What is the breakeven point and margin of safety?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
£140,000 ÷ £20 = 70,000 Units
How this is possible ?
- John makes and sells a product which has a variable cost of £60 and sells for £80 per unit. Budgeted fixed cost are £140,000 and budgeted sales are 16000 units. Please Calculate breakeven point and margin of safety. Thank youRachel Ltd. manufactures chopping boards. Each unit sells for €15. Variable costs are €5.50 per unit. Fixed costs are budgeted at €87,903.5 for the forthcoming financial year and the company expects to sell 15,000 units. What is the margin of safety (to the nearest €)? a) €54,597 b) €62,520 c) €138,795 d) €86,205Marshall s target margin of safety be in units and dollars if they required a $14,000 margin of safety?
- Halifax Products sells a product for $75. Variable costs per unit are $50, and monthly fixed costs are $75,000. Answer the following questions: Required: What is the break-even point in units? What unit sales would be required to earn a target profit of $200,000? Assuming Halifax achieve the level of sales required in part b, what is the margin of safety in sales dollars?Smithson Cutting is opening a new line of scissors forsupermarket distribution. It estimates its fixed cost to be $500.00and its variable cost to be $0.50 per unit. Selling price is expectedto average $0.75 per unit.a) What is Smithson’s break-even point in units?b) What is the break-even point in dollars?Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics. Sales price $ 18 per unit Variable costs 7 per unit Fixed costs 27,000 per month Assume that the projected number of units sold for the month is 7,000. Consider requirements (b), (c), and (d) independently of each other. Required: a. What will the operating profit be? b. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? c. What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? d. Suppose that fixed costs for the year are 10 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much?
- A company expects to sell 75,000 widgets at a price of $10.00. The unit variable costs are estimated at $8.00, and the fixed costs are estimated at $125,000. On the basis of this information, calculate the following: 1. Contribution margin 2. PV ratio 3. Revenue break-even by using the PV ratio 4. Profit generatedBreak-even analysis Show all your solutions. 1. The Fixed Cost is P4,000. The material and labor costs are P4.00 per unit. The supplier’s selling price is P5.00 per unit. The break-even point is 2. Production has indicated that they can produce widgets at a cost of P4.00 each if they lease new equipment at a cost of P10,000. Marketing has estimated the number of units they can sell at a number of prices (Php4000) Which price/volume option will allow the firm to avoid losing money on this project? 3. A food repacking company estimates sales figures of Php15.5M for their most popular item. Assuming that the item sells at Php375 each, fixed costs are Php4M, and variable cost are Php215 per unit repacked. a. What is the break-even sales volume? b. Find the corresponding profit figures if the actual sales will be as estimated. 4. A manufacturer can sell a certain health supplement for P1,100 per unit. Its total cost consists of a fixed overhead of Php75,000 plus production costs of…Calculate the margin of safety if the company expects to sell 200,000 units of plastic plates. Cosmo Sdn Bhd plans to sell a health product Pan Pan Sdn Bhd produces and sells plastic plates to retailers for RM3 per unit. The variable How many plates must be sold in order to earn a profit of RM66,000? Calculate the number of plastic plates that must be sold in order to break even. REV Direct materials RM Direct labour 0.40 Variable overheads 0.70 Selling expense 0.50 0.20 cost amounted to RM120,000 per year, Total fixed administrative cost The fixed manufacturing is RM30,000. Required: a. b. C.
- Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics. Sales price $ 21 per unit Variable costs 7 per unit Fixed costs 27,000 per month Assume that the projected number of units sold for the month is 7,000. consider requirements (b), (c), and (d) independently of each other. Required: a. What will the operating profit be? B. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? c. What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? d. suppose that fixed costs for the year are 10 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? complete this question by entering your…Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics. Sales price $ 21 per unit Variable costs 7 per unit Fixed costs 27,000 per month Assume that the projected number of units sold for the month is 7,000. consider requirements (b), (c), and (d) independently of each other. Required: a. What will the operating profit be? B. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? c. What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? d. suppose that fixed costs for the year are 10 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? complete this question by entering your…Course: Costs and Budgeting If the fixed costs of a company are USD 4,000,000, the unit variable cost is USD 200 and the unit selling price is USD 400.It is asked:(a) What is the break-even point in units and in dollars?b) What is the break-even point in units if the fixed costs double? and if they decrease by half?