User Account

All Pages

What would be the expected percentage increase

Assignment Help Accounting Basics
Reference no: EM133157483

Question - Cost-volume-profit analysis - The following is Pacific Limited's contribution format income statement for January 2022:

Sales $1,400,000

Variable expenses 700,000

Contribution margin 700,000

Fixed expenses 400,000

Net operating income $300,000

The company has no beginning or ending inventories and produced and sold 25,000 units during the month.

a. The company's top management team is currently investigating how many units they need to sell to reach the break-even point. Also, they want to know how much revenue they need to generate to reach the break-even point. What do you think?

b. If the company aim to generate a profit of $155,000, how many extra units they need to sell beyond the break-even point?

c. What is the company's margin of safety both in dollar and percentage terms? Explain the margin of safety of the company?

d. Company's Marketing Manager is confident that she can increase sales by 28% next year with some effort. What would be the expected percentage increase in net operating income? Use the degree of operating leverage concept to compute your answer.

Reference no: EM133157483

Questions Cloud

How corporate ethics and corporate social responsibility : How corporate ethics and corporate social responsibility (CSR) can help attract and retain (even improve the morale of) talent
Compute the book value per share : There is $170,000 in preferred stock outstanding; 30,000 shares of common stock have been issued. Compute the book value per share
Identify two business risks faced by bb : Identify two business risks faced by BB. For each business risk, discuss how it might lead to a material misstatement of the financial report
Use a cash flow prediction report : Find a company online, perhaps using Yahoo Finance, that in your opinion has too much debt.
What would be the expected percentage increase : What would be the expected percentage increase in net operating income? Use the degree of operating leverage concept to compute your answer
Coding and developing the programs in java : How to get more closely in terms of coding and developing the programs in java programming language
Which payment option is optimal : The firm generated a sales revenue of $5 million during last year. If the discount rate that applies to you is 10 percent, which payment option is optimal
Indicate the type of accounting change : In your report, indicate the type of accounting change (change in accounting policy or change in estimate) or correction of error
Components of emotional intelligence : Analyze the five components of emotional intelligence and their relationship to transformational leadership.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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