Calculate the profitability of the following proposal using Average rate of return (ARR) method Proposal I  Automatic machine Cost OMR 420000 Estimated life   6.5 years Estimated sales P.A OMR 175000 Cost : Material  OMR 60000 Labour OMR 22000 Variable overheads OMR 14000

Q: If variable cost per unit 5.5, initial fixed cost OMR 28000 and unit produces and sold 28000 units…

A: Total variable costs = total units produced x variable costs  per unit = (28000+16500)*5.5 = OMR…

Q: The following price and cost data are given for Company E: Selling price per unit P25.00, Variable…

A: Formula: Break even point = Fixed cost / ( Selling price per unit - variable cost per unit )

Q: please solve the  sub-parts to be solved. thanks  Ziggy Creations makes and sells a single product.…

A: The contribution margin is calculated as difference between sales and variable costs.

Q: If selling price  $300 per unit                   Variable cost $250 per unit…

A: Formula: Contribution margin = Sales - variable cost

Q: Calculate the profitability of the following proposal using Return on investment method Proposal I…

A: Return on investment: It is a financial performance measure that evaluates the profitability of a…

Q: Calculate the profitability of the following proposal using Return on investment method Proposal I…

A: Net income = sales - material - labor cost - variable overhead =160000 - 60000 - 22000 - 14000 =…

Q: An unfinished desk is produced for $34.60 and sold for $64.65. A finished desk can be sold for…

A: Differential Analysis: Differential analysis refers to the analysis of differential revenue that…

Q: YEAR CONVEYOR FORKLIFT (S150,000) (S60,000) (33,000) (48,000) 2 (33,000) (48,000) 3 (33,000)…

A: a. Calculation of IRR of each alternative is not possible to calculate because the cash inflow is…

Q: E4 Location Breakeven Analysis (also known as cost-volume analysis) is a technique used to make an…

A: Particulars A B C a. Expected Volume in Units (per year) 2500 2500 2500     Rs Rs Rs b.…

Q: Bloom Company predicts it will incur fixed costs of $255,000 and earn income of $427,500 in the next…

A: Total dollar sales = Fixed costs plus pretax income / Contribution margin ratio Variable costs =…

Q: Example 1. Surge Electric uses 4000 toggle switches a year. Switches are priced as follows. 1 to…

A: Order quantity 1-499,                                         = 816.4965809 Optimal quantity is not…

Q: Draw up a marginal cost statement on the basis that 12,000 units will be sold and calculate the net…

A: 1. Breakeven point is the point where there is no profit and loss. At this point the company has…

Q: Exercise 2-9

A: Product costs are the costs that are incurred by the company to manufacture a product that will be…

Q: Basic CVP Analysis – Using Goal Seek Determine the breakeven point for the Drill/Driver product…

A: As per our protocol we provide solution to the one question or to the first three sub-parts and you…

Q: Lazy Days Inc. (LDI), sells hammocks. Revenue and cost information is given below: Sales Price TL 30…

A: Contribution margin is the sales revenues over and above its variable costs. Contribution margin…

Q: hree lathes П, 12, äre av the following information. Information is expressed in terms of cost. If…

A: Step 1 First let us note down the 8% interest table :   4 years 6 years 12 years…

Q: Three mutually exclusive design alternatives are being considered. The estimated sales and cost data…

A: AW or Annual Worth of project shows equivalent annual benefits that will be generated from project…

Q: choose between two reiigerati pans. The two machines have the following investment and operating c…

A: Annual equivalent cost is very useful technique in the evaluation of machine and equipment.

Q: When the price =20000- 50(Demand), fixed cost3D$500 per month and variable cost =$1000 per unit, the…

A: This is a simple case of revenue maximisation thoery of economics. Which says that the revenue is…

Q: A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round…

A: A profit analysis table helps in identifying the cost points of a product and help in calculating…

Q: A company is uncertain how many units of a new product can be so each year. To determine its…

A: Rate of return is computed by dividing the net profit by the investment.

Q: Current Attempt in Progress Coronado Industries sells radios for $50 per unit. Th costs are $685000…

A: Compute variable cost per unit for new equipment as shown below:

Q: An unfinished desk is produced for $35.00 and sold for $65.60. A finished desk can be sold for…

A: Differential Analysis Sell Unfinished Desk (Alternative 1) or Process Further into Finished Desk…

Q: Trent PLLent Swifty Corporation sells a product for $50 per unit. The fixed costs are $930000 and…

A: The breakeven point in units has been calculated by total fixed cost divided by contribution per…

Q: Calculate the profitability of the following proposal using Return on investment method…

A: Return on investment can be calculated by using this equation  Return on investment…

Q: Sales are 440000 OMR, variable cost = 110000 OMR, profit is 10000 OMR calculate fixed cost a.…

A: Sales = 440000 OMR Variable cost = 110000 OMR Profit = 10000 OMR

Q: onsider the following cost and pricing data of ABC Corp. on its Product X: Price: P120.00.per unit…

A: A cost function seems to be a function that predicts the cost which will be incurred at a given…

Q: Calculate selling price of new product; what-if questions; breakeven D&RCorp. has annual…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: A company has a choice between two machines with identical production capacity but different costs.…

A: Incremental IRR is the incremental rate of return a project generates. It is used to compare two…

Q: solve the followinng  unit sold    10000 variable expense       $0.07million  contribution margin…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Reid Company is considering the production of a new product. The expected variable cost is $24 per…

A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: Without resorting computations what's the total contribution margin at break even point? sales…

A: Contribution margin: Difference between the sales and the variable costs is called contribution…

Q: Sohar Aluminium company produce a breakeven units of 35000 and a breakeven sales revenue of…

A: Formula: Margin of safety = Expected sales revenue - Break even sales revenue Deduction of break…

Q: Vaughn Manufacturing has the following costs when producing 100000 units: Variable costs $600000…

A: Manufacturing costs are the cost paid during the manufacturing of a good.Direct material, direct…

Q: A)

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If Actual sales are OMR 600000, Total Fixed costs OMR 150000, Selling price per unit OMR 50, and…

A: Margin of safety sales means sales revenue over and above breakeven sales revenue. Margin of Safety…

Q: Define and compute the EOQ, and Total variable cost for the given information- Annual demand 5000…

A: Formula for economic order quantity: EOQ, is a formula used by companies to determine the best order…

Q: A company would like to determine various costs and points to aid them in deciding whether to expand…

A: P/V Ratio:-Profit volume ratio is the relationship between the contribution and Sales. The formula…

Q: Total Fixed cost is 60000 OMR Total Variable cost is 100000 OMR Calculate Total Cost Select one: O…

A:

Q: Consider the following table which summarizes data of two alternatives. First cost Annual return…

A: Rate of Return Method: it is the method of capital budgeting in which a rate is determined to find…

Q: The selling price of a component is 1.45 Riyal with a material cost of 0.8 Riyal. The cost of the…

A: The question is based on the concept of business accounting.

Q: The S Company provides you with the following information on its products: Unit selling price Unit…

A: Given, Selling price is P100 Variable cost and expense is P75 Fixed costs is P600,000       Note:…

Q: Consider the following cost and pricing data of ABC Corp. on its Product X:      Price:…

A: Disclaimer: Since you have posted a question with multiple sub-parts, we will solve first three…

Q: Mars Company has the following information: Total Fixed cost OMR 25000 Selling price per unit OMR 40…

A: Margin of Safety is the difference between the current sales and the breakeven sales.

Q: a) CVP analysis help managers to take better decision. Justify with real life scenario.…

A: CM Ratio: It means the Cost-Margin ratio. It shows the difference between sales and the variable…