In 2020, National Co. sold 3,000 units at P500 each. Variable expenses were P250 per unit, and fixed expenses were P150,000. The same selling price is expected for 2021. National Co is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is National Co.’s break-even point in units for 2021?
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In 2020, National Co. sold 3,000 units at P500 each. Variable expenses were P250 per unit, and fixed expenses were P150,000. The same selling price is expected for 2021. National Co is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is National Co.’s break-even point in units for 2021?
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- In 2019, Vaughn sold 3000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $490000. The same selling price is expected for 2020. Vaughn is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is Vaughn’s break-even point in units for 2020? 2450. 2352. 2940. 1960.In 2018, the company's sales was P 500,000. Its fixed costs amounted to P 100,000 per year. In 2019, sales was 20% higher, while profit was P 30,000 higher than the 2018 profit. For 2020, the company expects to have sales that is twice as much as the 2018 sales. The expected increase in production to meet the sales demand in 2020 will not require the company to exceed its normal capacity. a. What is the company's contribution margin ratio? b. How much profit does the company expect to eam in 2020?ROS Corporation sold 9,000 flashlight umbrellas in 2020. Their expected units to be sold this year is 10,000 units. What is the percentage change in sales volume? The variable expenses of wearable air purifiers last year amounted to Php500,000. The entrepreneur projects a 2.25% increase in sales volume. What is the projected variable expense?
- EFU Group is considering changing its credit period from “net 45" (which has resulted in 8 A/R "Turns" per year) to "net 60" (which is expected to result in 6 A/R “Turns" per year). EFU Group is currently producing a single product with variable costs of $150 and a selling price of $180. Additional annual credit sales of $180,000 from new customers are forecasted, in addition to the current $1.5 million in annual credit sales. The before-tax opportunity cost for each dollar of funds "tied-up" in additional receivables is 30%. Ignoring any additional bad-debt losses that may arise, should EFU Group relax their credit period?The management of Valencia Manufacturing Company is desirous of increasing operating incomeby 20% in 2019. They expect per unit data and total fixed costs to remain the same in 2018.Determine the number of units that must be sold to earn this target operating profit. Is this a realisticgoal?In 2019, Deepika Company has sales of $800,000, variable costs of $200,000, and fixed costs of $300,000. In 2019, the company expects annual property taxes to decrease by $15,000. Required: a. Calculate operating income and the breakeven point for 2019. b. Calculate the breakeven point for 2019.
- Excel company intends to introduce a new product in the year 2021. The selling price of the product is set at sh.500 for each unit and the sales are projected to be 1000 units. A return of 20% on the investment of sh.500, 000 in the product will be required in the coming year. Determine the target cost for each unit of product. Select one: A. Sh. 100 B. Sh. 400 C. Sh. 500 D. None of the aboveWarren's Hats forecasts that it will sell 25,000 baseball caps next year. The company buys its caps for $3 from the wholesaler and sells them for $15 each. If the company will incur fixed costs plus depreciation and amortization of $80,000, then what is the percentage increase in EBIT if the actual sales next year equal 27,000 caps?Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC per unit iof 6.50 per unit. Fixed cost is 155,000 and Interest cost is 90,000. Q3. Assume that the company expects to have sales increase by 20%, what will be the resulting change in EBIT in year 2021? choices: • 33.33% • 26.45% • 25% • 28.38%
- A small, US-based manufacturing firm is interested developing a new product to that would be produced andsold starting in 2022. Based on a preliminary market analysis, a demand forecast for the product (i.e., aprediction of the number of units sold each year) anticipates that 72,000 units can be sold the first year at aprice of $99.95 per unit. However, after that, sales are expected to decline each year according to a 95%learning curve.The required manufacturing process can produce 12 units of product per hour, up to a maximum of 72,000units per year. It would cost $4,000,000 to purchase and install the necessary manufacturing equipment,which would have a 10-year useful life. The equipment is expected to have little, if any, salvage value at theend of its useful life. While the equipment belongs to the 7-year MACRS property class, the firm willdepreciate the equipment using the most advantageous method allowed by US tax law.The manufacturing process requires the labor of a team of…APQ Company currently sells a piece of equipment for $150 per unit. It plans on lowering the price of the unit to $119 per unit. The cost of goods for each unit is consistent each year, at $52 per unit. The company expects to sell 100,000 units in the current year. Suppose that if APQ drops the price on the equipment immediately, it can increase sales over the next year by 30% to 130,000 units. Will this price decrease have a positive or negative impact on the company's EBIT? What will be the dollar value of the incremental impact of this price drop on the firm's EBIT? Will this have a positive or negative impact on the EBIT for the company? What will the dollar value of the incremental impact of the price drop be for the company? (Enter a negative for a loss, positive for a gain; round your answer to the nearest whole dollar.)The company has Fixed cost of 500,000 and CMR of 30%. If the company projected that net loss of 50,000 will occur in 2020 due to pandemic; What is the projected sales in 2020?