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- Question 3: Mirbat Company's financial information is given in the table below. Year Sales (OMR) Fixed Costs 445000 500000 Variable Costs 2020 105000 245000 2021 150000 280000 You are required to calculate the following values for each year. The years are independent of each other. a) P/V ratio, b) B.E.P. c) Sales required to earn a profit of OMR 45000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 300000.Verify your answer by preparing a continuation format income statement at the target sales level 4. compute the company's matgin of saftery in both dollar and percentage terms 5. What is the company's cm ration? If the company can sell more units thereby increasing sales by 77000 per month and there is no change in fixed expenses by how much would you expect monthly net operating income to increase?Suppose the company has just the opposite news and now expects unit sales for August, September, and October to be double (200%) the original estimates. What effect will this have on the company’s net income and borrowing? Explain your findings.
- Sandhill Company produces a molded briefcase that is distributed to luggage stores. The following operating data for the current year has been accumulated for planning purposes. $41.17 Sales price Variable cost of goods sold Variable selling expenses Variable administrative expenses 13.17 11.77 4.17 Annual fixed expenses $15,600,000 Overhead Selling expenses 3,100,000 6,500,000 Administrative expenses Sandhill can produce 3,000,000 cases a year. The projected net income for the coming year is expected to be $3,600,000. Sandhill is subject to a 40% income tax rate. During the planning sessions, Sandhill's managers have been reviewing costs and expenses. They estimate that the company's variable cost of goods sold will increase 15% in the coming year and that fixed administrative expenses will increase by $300,000. All other costs and expenses are expected to remain the same.Find the amount that should be invested now to accumulate the following amount, if the money is compounded as indicated. $13,000 at 6.3% compounded semiannually for 5 years $3466.53 Ⓒ$9578.05 $17,727.02 $9533.47 QUESTION 6 Find the correlation coefficient. The following are costs of advertising (in thousands of dollars) and the number of products sold (in thousands): Cost 6 3 7 6 10 4 7 7 Number 54 75 91 57 96 52 92 100 O 0.6112 O 0.6756 O 0.2635 O-0.3707 4 QUESTION 7 Find the effective rate corresponding to the given nominal rate. Round to the nearest hundredth. 5% compounded quarterly O 5.06% Click Save and Submit to save and submit. Click Save All Answers to save all answers. 144HZ Hi-Res 3ms AUDIO ESS ZEPHYRUSWhat volume of sales (in dollars) must Disk City achieve in the coming year to maintain the same net income as projected for the current year if the unit selling price remains at $17? 2. In order to cover a 20 percent increase in the disk’s purchase price for the coming year and still maintain the current contribution-margin ratio, what selling price per disk must Disk City establish for the coming year?
- Question Part Score If it holds the sales price constant and makes the suggested changes, how many units of product will Wildhorse have to sell to make the same operating Income before taxes as last year? Required sales units If Wildhorse wishes to maintain the same contribution margin ratio, what selling price per unit of product must it charge next year to cover the increased materials costs? (Round answer to 2 decimal places, e.g. 15.25) Selling price per unit $(b) What is Blossom's monthly breakeven point in units? Breakeven point (c) eTextbook and Media Save for Later What is Blossom's contribution margin ratio? Contribution margin ratio (d) eTextbook and Media Save for Later What is Blossom's monthly breakeven point in sales dollars? Breakeven sales $ eTextbook and Media Save for Later cakes % Att Attempt2. Conceptual Connection: Compute net profit margin for ERS. Round your answer to one decimal place. 6.6 % A If ERS is able to increase its service revenue by $100,000, what should be the effect on future income? If ERS had an incremental increase in revenue of $100,000, based on the net profit margin computed, what is the additional potential profit? 3. Conceptual Connection: Assume that ERS net profit margin was 8.5% for 2018. As an investor, what conclusions might you draw about ERS' future profitability? A declining profit margin implies that ERS is having difficulty maintaining control over its expenses.
- A company is making plans for next year, using cost-volume-profit analysis as its planning tool. Next year's sales data about its product are as follows Selling price P60 Variable manufacturing costs per unit 22.50 Variable selling and administrative costs 4.5 Fixed operating costs (60% is manufacturing costs) P159,500 Income tax rate 30% How much should sales be next year if the company wants to earn profit after tax of P23,100, the same amount that it earned last year?1. Summer Company has annual fixed costs of P90,000. This year, it recorded profit of P30,000 which is 10% of its sales. In the coming year, sales volume is expected to increase by P200,000 and the profit ratio will go up to 22%. What is Summer's break even sales ratio in the coming year? (Show forluma and solution) a. 45% b. 40% c. 55% d. 22%A start up business is considering two types of equipment - data are as follows: TYPE A TYPE B First Cost Annual operating cost Annual labor cost P200,000.00 P300,000.00 32,000.00 50,000.00 24,000.00 32,000.00 Insurance and property taxes Payroll taxes Estimated life 3% 4% 3% 4% 10 10 The minimum required rate of return is 15%. What is the exact rate of return?