NUBD wishes to market a new product for P1.50 per unit. Fixed costs to manufacture this product are P100,000 for less than 500,000 units and P150,000 for 500,000 units or more. The contribution margin ratio is 20%. How many units must be sold to realize net income from this product of P100,000?
Q: if a product total fixed cost is 50,000 and its variable cost is 28500 for 9500 units what should be…
A: Variable costs per unit = Total variable cost / no. of units = 28500/9500 = 3 per unit
Q: Mazoon Company is producing 30000 units every year and making a profit of RO 450000. The company…
A: Degree of Operating Leverage = Contribution margin/ Net Income
Q: It costs Mills, Inc. $5 per unit to manufacture 1290 units per month of a product that it can sell…
A: Increment revenue arises when the product is processed further to earn additional revenue over the…
Q: Currently, the unit selling price of a product is $750, the unit variable cost is $600, and the…
A:
Q: What would be the total contribution to profit to the company as a whole for 10,000 units…
A: Selling Price for 10,000 units (10,000 * P21) P2,10,000 Relevant Cost: Variable cost of…
Q: Kyle Inc. is planning to sell 197,500 units of Product K. The fixed costs are P1,200,000 and the…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…
A: Hi student Since there are multiple question, we will answer only first question.
Q: Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $8 while…
A: Current sales = 20000 units Selling Price per unit = $8 Variable Cost Ratio = 20% Fixed Costs…
Q: NUBD Co. incurs annual fixed costs of P250,000 in producing and selling a single product. Estimated…
A: Solution:- Calculation of variable costs per unit as follows under:- Introduction:- The following…
Q: Mazoon Company has fixed costs of $12,000 and a breakeven point of 600 units. If the company plans…
A: Breakeven point in units = Fixed costs/ Contribution margin per unit Oeprating income = Contribution…
Q: XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with…
A: Formula: Profit = Revenues - Expenses.
Q: NUBD Company is planning to produce two products, X and Y. NUBD is planning to sell 100,000 units of…
A: Profit = Sales Revenue - Total Variable costs - Total Fixed costs We know that variable costs…
Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…
A: Units produced and sold = 40,000 Contribution margin = $320,000 Fixed cost = $80,000 Increase in net…
Q: Sweet Manufacturing is planning to sell 400,000 hammers for $3 per unit. The contribution margin…
A: Contribution margin per unit = Sales x Contribution margin ratio = $3 per unit x 20% = $0.60 per…
Q: NUBD is planning to sell 100,000 units of Product Excellence for P12 per unit. The fixed costs ratio…
A: Total sales value=100000*12=1200000 Fixed cost=1200000*25%=300000
Q: Jamie Quinn, a sole proprietor, has the following projected figures for next year: Selling price…
A: Formula: Break even point in units = Fixed cost / ( Selling price per unit - variable cost per unit…
Q: Jack’s Jax has total fixed costs of $25,000. If the company’s contribution margin is 60%, the income…
A: Given that, total fixed costs of $25,000 company’s contribution margin is 60% the income tax rate…
Q: The Price Company will produce 55,000 widgets next year. Variable costs will equal 40 percent of…
A: Solution:- Earnings before interest and taxes (EBIT) means the operating income of an entity before…
Q: In the upcoming year, NUBD estimates that it will produce and sell 4,000 units. The variable costs…
A: Analysis: As per Marginal costing, Margin of safety is the difference between Total sales Amount and…
Q: Drape Corp. would like to market a new product at a selling price of P15 per unit. Fixed costs for…
A: Contribution margin per unit = P15 x 35% = P5.25
Q: Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $7 while…
A: It is pertinent to note that margin of safety is the additional sales made by the entity over and…
Q: how many units must Tony sell to breakeven?
A: Breakeven sales is the sales at which there is no profit or no loss. Breakeven point = Fixed cost/…
Q: NUBD Company is planning to produce two products, X and Y. NUBD is planning to sell 100,000 units of…
A: Total sales - X = 100,000*P4 Total sales - X = P400,000 Variable costs -X = P400,000*70% Variable…
Q: National Co. produces two models: Model X has sales of 500 units with a contribution margin of P40…
A: Profit = Sales revenue - Total variable cost - Total fixed costs Here Sales revenue - Total…
Q: NUBD Company is planning to produce two products, X and Y. NUBD is planning to sell 100,000 units of…
A: Total contribution margin = (Sales units of x * Sales price *(1- variable costs %) + (Sales units of…
Q: The Marietta Company has fixed costs of $40,000 and variable costs are 75% of the selling price. To…
A: Variable cost indicates the flexible cost, the change in which is depend upon the change in activity…
Q: A company needs to sell 10,000 units of its only product in order to break even. Fixed costs are…
A: Margin of Safety: The break-even point reflects the level of sales volume where no profit or loss is…
Q: Currently, the unit selling price of a product is $1,500, the unit variable cost is $1,200, and the…
A: Break-even point(BEP): It is a point where there would be no profit or no loss which means that the…
Q: A company makes a product with a selling price of $20 per unit and variable costs of $12 12 per…
A: Calculate contribution margin per unit:
Q: A firm has fixed operating costs of $100,000 and variable costs of$4 per unit. If it sells the…
A: The formula to compute break-even quantity:
Q: NUBD Company is planning to produce two products, X and Y. NUBD is planning to sell 100,000 units of…
A: Formula: Contribution margin = Sales - variable cost
Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…
A: The Calculation of Profit is as follows: Contribution = Sales - Variable Costs…
Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…
A: Current net profit Net Profit = Contribution margin - Fixed cost Net Profit =…
Q: The Vetron Company is planning to produce two products, Tig and Lam. Vetron is planning to sell…
A: Solution: - Calculation of Break-even point of "Tig" as follows under(In pesos):-
Q: Harrison Co. expects to sell 200,000 units of its product next year, which would generate total…
A:
Q: Penny Corporation desires to earn target net income of $15,000. If the selling price per unit is…
A: NUMBER OF UNITS TO EARN TARGET INCOME : = (TOTAL FIXED EXPENSES + TARGET INCOME) / CONTRIBUTION PER…
Q: Shapland Inc. has fixed operating costs of $500,000 and variable costs of $50per unit. If it sells…
A: Given information: Fixed operating costs amounted to $500,000 Variable cost per unit is $50 Selling…
Q: Compute the contribution margin per unit if the machine is purchased.
A: Contribution Margin = Sale Price - Variable Cost Sale Price = $57 per unit Variable Cost = $34 per…
Q: NUBD Company manufactures a face masks that sells for P10 per unit. This is its sole product and it…
A: Solution: Contribution margin per unit = Fixed costs / Breakeven units = P100,000 / 50000 = P2 per…
Q: A company has set its initial selling price at $28 per unit. Its variable manufacturing costs are…
A: (Note: Since you have posted a multi-part question, we will solve the first three parts for you. For…
Q: Currently, the unit selling price of a product is $200, the unit variable cost is $160, and the…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: Yorkville sells a haircutter at $65 and each unit has variable cost of $25. Yorkville's fixed…
A: Calculation of the Incremental net income:- Incremental net income = Incremental Revenue -…
Q: Chile's, Inc. currently produces and sells 4,000 units of a product that has a contribution margin…
A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…
Q: An electronics firm is currently manufacturing anitem that has a va riable cost of $.50 per unit and…
A: We first need to determine the profit in the two cases by considering the revenue and the total…
Q: Gorilla, Co. provides two products, M and W. M accounts for 60 percent of total sales, variable cost…
A: Before finding the sales for targeted profit, we will first have to find the company level variable…
Q: Chile’s, Inc. currently produces and sells 4,000 units of a product that has a contribution margin…
A: We know that under marginal costing Profit = Sales Revenue - Total Variable cost - Total Fixed…
Q: Drape Corp. would like to market a new product at a selling price of P15 per unit. Fixed costs for…
A: Contribution margin per unit = P15 x 35% = P5.25
Q: Tony Company is contemplating of marketing a new product. Fixed costs will be P800,000 for…
A: Breakeven point is described as the point of level of production where the total expenses equal the…
Q: National Co. has revenue of P500,000, variable costs of P300,000 and pretax profit of P150,000. If…
A: Answer) Calculation of New Break-eve Point New Break-even Point = Revised Fixed Cost/ Revised…
NUBD wishes to market a new product for P1.50 per unit. Fixed costs to manufacture this product are P100,000 for less than 500,000 units and P150,000 for 500,000 units or more. The contribution margin ratio is 20%. How many units must be sold to realize net income from this product of P100,000?
Step by step
Solved in 3 steps
- 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.Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Company wishes to market a new product for P1.50 per unit. Fixed costs to manufacture this product are P100,000 for less than 500,000 units and P150,000 for 500,000 units or more. The contribution margin ratio is 20%. How many units must be sold to realize net income from this product of P100,000?
- Drape Corp. would like to market a new product at a selling price of P15 per unit. Fixed costs for this product are P1,000,000 for less than 500,000 units of output and P1,500,000 for 500,000 or more units of output. The contribution margin percentage is 35%. How many units of this product must be sold to earn a targeerating income of P1 million?NUBD wishes to market a new product for P1.50 per unit. Fixed costs to manufacture this product are P100,000 for less than 500,000 units and P150,000 for 500,000 units or more. The contribution margin ratio is 20%. How many units must be sold to realize net income from this product of P100,000? A. 333,333 B. 500,000 C. 666,667 D. 833,333Golden Corporation contemplates to market a new product. Estimated fixed costs is P1,000,000. The variable costs ratio is 60%. if the product is to be sold at P25 per unit, how many units should the company sell to earn a net income of P200,000?
- The Colits Corp. sells products for P200 each. Variable costs are P150 per unit. Fixed Costs are P800,000. How much sales (in pesos) must be reached to realize a net income of 15% of sales?Swifty Corporation is planning to sell 810000 units for $1.50 per unit. The contribution margin ratio is 20% . If Swifty will break even at this level of sales, what are the fixed costs? O $810000 $567000. O $930000. $243000.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?
- John Co. produces a product that sells for P80. The variable manufacturing costs are P50 per unit. The fixed manufacturing cost is P10 per unit based on the current level of activity, and fixed selling and administrative costs are P10 per unit. A selling commission of 10% of the selling price is paid on each unit sold. What is the contribution margin per unit?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? 40,000 50,000 10,000 100,000A company manufactures and sells a single product whose selling price is P500 and whose variable expense is P300 per unit. The company’s monthly fixed expense is P120,000. Required:1. Solve for the unit sales that are required to earn a target profit of P80,000. 2. If the company wants to earn a profit of P200,000, how much should be the sales revenue?