Determine the Break-even point for the product

Assignment Help Accounting Basics
Reference no: EM132875820

Question -

A. Use the following information to answer the six questions below.

Variable Manufacturing Cost Per Unit 20

Variable selling cost per unit 25

Selling Price per unit 100

Fixed Manufacturing cost per unit 30

Fixed selling cost per unit 10

Expected production and sales 1000 units

1. Determine the Contribution Margin per unit?

2. Determine the Contribution Margin ratio?

3. Determine the Break-even point for the product?

4. If the firm wants to earn P70,000 in pre-tax profit, sales revenue must be equal to?

5. If the firm wants to earn P70,000 in pre-tax profit, contribution margin must equal to?

6. If the tax rate is 40 percent how many units must be sold to earn an after tax profit of P60,000?

B. The following are taken from Green Company's income statement:

Net Income P30,000

Fixed Costs 90,000

Sales 200,000

Contribution Margin Ratio 60%

1. Determine the company's margin of safety amount?

2. Determine the margin of safety in percentage form?

Reference no: EM132875820

Questions Cloud

Research a company that had a fraud event happen : Review the fraud event that happened in the company in detail and identify at least two accounting control procedures that were deficient in this event.
Does this service cause Simone to lose her independence : Does this service cause Simone to lose her independence? What are the references from the AICPA Code of Professional Conduct
How the ais application helped the malaysian agricultural : Describe how the ALPHA method can be applied to small agricultural organizations. how the AIS application helped the Malaysian agricultural industry.
Understanding the challenge of employee demotivation at work : Explain the unique added perspective of each of the role's perspectives (i.e needs, equity, goals, and expectations, context, and rewards) to understanding the
Determine the Break-even point for the product : Determine the Break-even point for the product? If the firm wants to earn P70,000 in pre-tax profit, contribution margin must equal to
What hr role in the success of program : 1. For this question refer to the "Samsung Values in Exhibit3. How would each of the values listed be applied in an HR context (including policies, procedures,
Configuration for the human resources department : -Is there a minimum level or configuration for the human resources department? How does this minimum level vary based on the size of the organization and indust
Advantage-disadvantage of external selection for position : Provide an advantage and a disadvantage of external selection for this position and an advantage and a disadvantage of internal selection.
Introduction of a global virtual team : Select an organization that has been through, is going through, or is about to experience a significant business challenge (e.g., an organizational crisis

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the tax payable by texco sdn bhd

Compute the tax payable by Texco Sdn Bhd for YA2018. Texco Sdn Bhd is engaged in the manufacture and sale of rubber products

  How much extra will end-users pay for a green option

Environmental issues, including climate change, are increasingly discussed in the executive suite as it relates to strategy formulation and implementation.

  What is the amount that will be included in gross income

Pluto filed his tax return, properly claiming head of household filing status. What is the amount, if any, that will be included in gross income in 2020

  Analyzing accounting data for managerial decisions

Accounting data are used to analyze cash flows, and this analysis is critical for decision making. Consider the following case:

  Explain briefly the pecking order theory of funds

Explain briefly the pecking order theory of funds developed by Myers and Majluf (1984)? What is Ross (1977) argument for separation in the capital markets - What is the value of the unlevered beta?

  Classification at costs merchandising sector home

classification at costs merchandising sector home entertainment center hec operates a large store in san francisco. the

  What amount of capitalized interest should brick report

What amount of capitalized interest should Brick report as part of its building account at December 31, 2011

  Which lever of control is zuzu emphasizing

Ethics, levers of control. Zuzu is a large manufacturer of snack cakes. The company operates distribution centers in Chicago. The distribution center bakes.

  Prepare the necessary journal entries using good form

Prepare the necessary journal entries using good form. Made adjusting entry for Bad Debt Expense using the percentage of net sales method.

  How much can miley except to receive for sale of these bonds

The discount rate for such securities is 10%. How much can Miley except to receive for the sale of these bonds? This is from financial accounting

  What is the percentage of completion for transferred-in cost

Hoffman Company, as you know, is a manufacturer of car seats. Each car seat passes through the assembly department and testing department.

  Standard hours allowed for labors

Hart Company's labor standards call for 500 direct labor hours to produce 250 units of product. During October the company worked 625 direct labor hours and produced 300 units. The standard hours allowed for October would be:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd