Please help me 12PartRequired informationProblem 18-3A (Algo) Break-even analysis; income targeting and strategy LO C2, A1, P2[The following information applies to the questions displayed below.)Astro Company sold 24,500 units of its only product and reported income of $210,600 for the current year. During aplanning session for next year's activities, the production manager notes that variable costs can be reduced 41% byinstalling a machine that automates several operations. To obtain these savings, the company must increase its annualfixed costs by $159,000. Total units sold and the selling price per unit will not change.ASTRO COMPANYContribution Margin Income StatementFor Year Ended December 31Sales ($59 per unit)Variable costs ($41 per unit)Contribution marginFixed costsIncome$1,445,5001,004,500441,000210,400$ 210,000Problem 18-3A (Algo) Part 33. Compute the sales level required in both dollars and units to earn $290,000 of target income for next year with the machineinstalled. (Do not round intermediate calculations. Round your answers to 2 decimal places. Round "Contribution margin ratio" tonearest whole percentage)

Variable costs are costs that varies with the change in the level of output whereas fixed costs are…

Answered: Required information Problem 18-3A…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter20: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3CMA: Bolger and Co. manufactures large gaskets for the turbine industry. Bolgers per-unit sales price and...

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The S Company provides you with the following information on its products: Unit selling price Unit variable costs and expenses P100 75 Fixed costs and expenses per year P600,000 It has been estimated that during a temporary shutdown o four months, fixed costs and expenses can be reduced by 20%, although additional costs of maintenance and security of P18,000 has to be incurred. REQUIRED: 1. At what point in units would loss from operations be equal to shutdown costs? Prove by preparing an income statement. 2. How many units must be sold to avoid a loss? Prove also the answer by preparing an income statement. 3. How much is the net advantage or disadvantage of shutting down during the 4- month period? 4. Assuming that the additional cost for security will not change at P18,000, compute again for shutdown point, if the shutdown would be: a. Three months b. Six months c. Five months d. One year
Question 2 XYZ Company produces and sells only two products since year 2000. Data concerning those products for March 2020 appear below: Product A Product B March Sales $25,000 $27,000 March Variable costs $7,000 $8,600 March Fixed costs $32,860 Required: As a Senior Manager at XYZ Company, your General Manager asked you to determine the total sales of the company in $ for product A and for product B that should be achieved to cover both variable and fixed costs for the month of March by using the company's contribution margin. The level of competition in the market was acceptable and manageable by the Company. In March, 2020, a new potential competitor is doing a market research to decide on entering the market with a product similar to Product A. The General Manager asked for your advice if the company should shift the sales mix toward Product B with no change in total sales (as the sales of product B is more than product…
15 ces ! Required information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income. Average operating assets At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: $ 200,000 60 $ 90,000 The company's minimum required rate of return is 15%. Sales Margin $ 1,000,000 300,000 700,000 500,000 $ 200,000 $ 625,000 Contribution margin ratio Fixed expenses 4. What is the margin related to this year's investment opportunity? % of sales
! Required information SB Exercise 6-16 through Exercise 6-17 (Algo) [The following information applies to the questions displayed below.] Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has two offices-one in Chicago and one in Minneapolis. It classifies the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company's most recent year is given below: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 531,000 265,500 265,500 148,680 116,820 74,340 $ 42,480 100.00% 50.00% 50.00% 28.00% 22.00% 14.00% 8.00% Chicago $ 177,000 53,100 123,900 92,040 $ 31,860 Office 100.00% 30.00% 70.00% 52.00% 18.00% Minneapolis $ 354,000 212,400 141,600 56,640 $ 84,960 100.00% 60.00% 40.00% 16.00% 24.00%
-/1 Question 4 View Policies Current Attempt in Progress ort Sunland Companyrecorded operating data for its Cheap division for the year. Sunland requires its return to be 10%. $1200000 Sales Controllable margin 180000 Total average assets 3600000 Fixed costs 100000 What is the RÓI for the year? O 33% 19% 5% O 8%
PLS ANSWER AND SHOW SOLUTION #10 The following monthly data are available for Tugg, Inc. which produces only one product: Selling price per unit, P42; Unit variable expenses, P14; Total fixed expenses, P70,000; Actual sales for the month of June, 4,000 units. How much is the margin of safety for the company for June?
Break-Even Sales and Sales to Realize Income from Operations For the current year ending October 31, Yentling Company expects fixed costs of $426,000, a unit variable cost of $40, and a unit selling price of $60. a. Compute the anticipated break-even sales (units). 110,000 X units b. Compute the sales (units) required to realize income from operations of $98,000. 154,000 X units Feedback Check My Work a. Fixed costs divided by the unit contribution margin equals break-even point in units. b. (Fixed costs + Target profit) divided by unit contribution margin = sales units.
Problem 6-18 (Algo) Relevant Cost Analysis in a Variety of Situations [LO6-2, LO6-3, LO6-4] Andretti Company has a single product called a Dak. The company normally produces and sells 87,000 Daks each year at a selling price of $60 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $ 7.50 8.00 2.90 5.00 ($435,000 total) 2.70 2.50 ($217,500 total) $28.60 A number of questions relating to the production and sale of Daks follow. Each question is independent. Required: 1-a. Assume that Andretti Company has sufficient capacity to produce 113,100 Daks each year without any increase in fixed. manufacturing overhead costs. The company could increase its unit sales by 30% above the present 87,000 units each year if it were willing to increase the fixed selling expenses by $110,000. What is the financial…
Exercise 12-16 (Algo) Calculate selling price of new product; what-if questions; breakeven LO 8, 9, 10, 11 D&R Corp. has annual revenues of $262,000, an average contribution margin ratio of 33%, and fixed expenses of $101,800. Required: Management is considering adding a new product to the company's product line. The new item will have $8.7 of variable costs per unit. Calculate the selling price that will be required if this product is not to affect the average contribution margin ratio. If the new product adds an additional $29,100 to D&R's fixed expenses, how many units of the new product must be sold at the price calculated in part a to break even on the new product? If 20,900 units of the new product could be sold at a price of $14.2 per unit, and the company's other business did not change, calculate D&R's total operating income and average contribution margin ratio.
Required Information of 15 The following information applies to the questions displayed below] Westerville Company reported the following results from last year's operations: $2,300,000 Sales Variable expenses Contribution margin Fixed expenses 1,630, 000 24 460,000 $41,437,500 Net operating income erInt Average operating assets At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 460,000 se% of sales $ 161,000 The company's minimum required rate of return is 15%. Required: 1 What is last year's margin? Prev 15 of 15 Nex てし Type here to search ye. 近 (6) F4 F5 F7 F8
Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,500 units at $225 each) Variable costs (10,500 units at $180 each) Contribution margin Fixed costs Income $ 2,362,500 1,890,000 472,500 369,000 $ 103,500 Exercise 5-18 (Algo) Evaluating strategies-price increase LO C2 If the company raises its selling price to $240 per unit. 1. Compute Hudson Company's contribution margin per unit. 2. Compute Hudson Company's contribution margin ratio. 3. Compute Hudson Company's break-even point in units. 4. Compute Hudson Company's break-even point in sales dollars. 1. Contribution margin 2. Contribution margin ratio 3. Break-even in units 4. Break-even sales dollars per unit % units

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