CVP Drill #9 Letters Company sells plastic rock climbing walls for $400 each. If the company's fixed costs total $300,000, how much in sales revenue must Letters achieve to breakeven if variable costs are $300 each?
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- Samsung manufacturers USB charging cables for mobile devices. It sells these cables to distributors for $2.6000000000 each, while their variable costs are 72e per cable, and they have a fixed cost of $43000 to manufacture the cables. 1. What is the Contribution margin (in dollars)? 2. What is the profit function (without units using x as the number of cables sold)? 3. What is their projected profit or loss next month (in dollars), for which Samsung forecasts sales of 23241 cables? 4. What is the break even volume (without units)? For parts 1, 2, and 3, answer to the nearest cent. For part 4, answer to one decimal place (don't round up to the nearest whole unit). Answer: 1. Contribution margin = 2. Profit function: Profit= 3. Profit or loss = 4. Break even volume =Tiktok Company distributes a lightweight lawn chair that sell for P150 per unit. Variable costs are P60 per unit, and fixed costs total P1,800,000 annually. Required: 1. What is the product's CM Ratio?2. Use the CM ratio to determine the break-even point in sales pesos.Sunland Company manufactures and sells solar chargers for $50 each. Variable costs are $40 per unit, and fixed costs total $120000. What amount of sales revenue is needed by Sunland to break even? $600000. $192000 O $428571 O $960000.
- Gotcha Covered manufactures and sells leather cases for cell phones. Each case sells for $80. Variable manufacturing costs are $30 per case. We pay a sales commission of 10% of the selling price to our salespeople. Fixed manufacturing costs are $200,000 and fixed operating costs are $35,000. Calculate the following amounts: a. b. C. ii. iii. iv. V. Target quantity if we want to generate Operating Income = $100,000 Neatly draw a CVP Chart. Be sure to label everything relevant. We currently produce and sell 10,000 cases. i. What is our expected Operating Income? How much is our Margin of Safety in units and dollars? Prepare an Income Statement (through Oper Inc) using the GM format. Prepare an Income Statement (through Oper Inc) using the CM format. Our plant manager suggested we purchase a new machine which will lower our labor costs. This change will increase Fixed Costs by $30,000 and reduce Variable Cost per Unit by $5. Calculate the new Breakeven Quantity and new expected Operating…Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.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.
- Mortech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and requires $1,500 per month in fixed costs. Mortech sells 200 cameras per month. If they process the camera further to enhance its functionality, it will require an additional $45 per unit of variable costs, plus an increase in fixed costs of $1,000 per month. The current price of the camera is $200. The marketing manager is positive that they can sell more and charge a higher price for the improved version. At what price level would the upgraded camera begin to improve operational earnings?Syntech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and requires $1,500 per month in fixed costs. Syntech sells 100 cameras per month. If they process the camera further to enhance its functionality, it will require an additional $45 per unit of variable costs, plus an increase in fixed costs of $1,000 per month. The current price of the camera is $160. The marketing manager is positive that they can sell more and charge a higher price for the improved version. At what price level would the upgraded camera begin to improve operational earnings?1. Alex Miller, Inc., sells car batteries to service stations for an average of $30 each. The variable cost of each battery is $20 and monthly fixed manufacturing costs total $10,000. Other monthly fixed costs of the company total $8,000. Required: a. What is the breakeven point in batteries? b. What is the margin of safety, assuming sales total $60,000? c. What is the breakeven level in batteries, assuming variable costs increase by 20%? d. What is the breakeven level in batteries, assuming the selling price goes up by 10%, fixed manufacturing costs decline by 10%, and other fixed costs decline by $100? 2. Answer the following questions, considering each situation independently. You might not be able to answer the questions in the order they are asked. 1. A company earned $200,000 selling 100,000 units at $8 per unit. Its fixed costs are $400,000. A. What are variable cost per unit? Why? How? B. What is total contribution margin? Why? How? C. What would income be if sales increased…
- XYZ Company sells a product for $250. The variable cost is $150 per unit. The fixed costs are $300,000. The company wants to have a profit of $400,000. How many units do they have to sell to achieve this goal?Al Ameen Company sells television sets for RO 200. The variable cost is RO 100 per unit. The fixed costs are RO 350,000. The company wants to have a profit of RO 150,000. How many units must be sold to achieve this goal? a. 6,000 units b. 2,000 units c. 5,000 units d. 3,000 unitsXYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with a variable cost of $ 48 per unit. If manufactures sells 13,000 stands, what would be the profit? a. 54000 Loss b. С. 240000 proſil d. 240.000 profit
