Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution margin 300,000 Less fixed cost 240,000 Net income 60,000 Assume that through a more intensive effort by the sales force the company's sales increase by 8 percent next year. By what percentage would you expect net operating income to increase? O 2 O none of the above O 6 O 3 O 4
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- PROBLEM 2. Outlast Company's projected profit for the coming year follows: Per Unit Total P200,000 (120,000) 80,000 (64,000) P 16,000 Sales Less: Variable costs P20 (12) P 8 Contribution margin Less Fixed expenses Income 4. Suppose Outlast would like to earn operating income equ to 20 percent of sales revenue. How many units must be sold for this goal to be realized? 5. For the projected level of sales, compute the margin of safety.PROBLEM 2. Outlast Company's projected profit for the coming year follows: Per Unit Total P200,000 (120,000) 80,000 (64,000) P 16,000 Sales P20 Less: Variable costs (12) Contribution margin Less Fixed expenses P 8 Income Requirements: 1. Compute the breakeven point in units. 2. How many units must be sold to earn a profit of P30,000? 3. Compute the additional profit that Outlast would eari sales were P25,000 more than expected.Sales (30,000 units) Tk.15,00,000 Tk.50 Variable Expense 12,00,000 40 Contribution Margin 300,000 Tk. 10 Fixed Expenses 220,000 Net Operating Income 80,000 If sales increase by Tk.350,000 next year and there is no change in fixed expenses, by how much would you expect net operating income to increase? Refer to original data. Compute company’s margin of safety in both dollar and percentage form. Compute company’s degree of operating leverage at present level of sales. 7. If sales increase by 7.5%, by what percentage would you expect net operating income to increase?
- What is the company's CM ratio if the companies can sell more units thereby increase sales by $55,000 per month? And there is no change in fixed expense. By how many would you expect monthly net operating income to increase by? Per unit Total Volume Sales $40.00 608000 Variable cost 28 425600 Contribution margin 12 182400 Fixed expense 156000 Net operating 12 26400Beckham Company has the following information available: Selling price per unit: Variable cost per unit: Fixed costs per year: £400,000 Expected sales per year: 20,000 units What is the expected operating income (i.e. profit) for a year? Select one: O A. £500,000 O B. O C. £700,000 £680,000 £100 £55 O D. £480,000Question 2: Muscat Company has the following information. OMR Fixed Cost 8750 Break even Sales 16000 a) PV Ratio b) Profit when sales are 20000 New BE point if selling price is reduced by %25
- Summarized data for Ralph Corporation: Selling price Variable expenses $ 200 per unit $ 150 per unit $ 1,000,000 per year 25,000 per year Fixed expenses Unit sales Knowledge Check 01 What is Ralph Corporation's margin of safety in dollars? $4 million $5 million O $1 million $2.2 million Knowledge Check 02 What is Ralph Corporation's margin of safety in percentage? O 20% O 100% 80% O 50%Question 2: Muscat Company has the following information. OMR Fixed Cost 8750 Break even Sales 16000 a) PV Ratio b) Profit when sales are 20000 c) New BE point if selling price is reduced by %251. Multiplicationtable: (No need the explanation just the answer pls)A manufacturer has invested P750,000 in a new product and wants to set a price to earn a 15 percent ROI. The cost per unit is P18 and the company expects to sell 50,000 units in the first year. The company's target-return price for this product is P ______. a. 18.23 b.20.25 c.20.70 d.18.10 e.25.202. A ballpen manufacturer have the following costs and expected sales: Variable cost P 10.00 Fixed cost P300,000.00Expected unit sales 50,000 Break-even volume will be P______. a. 30,000 b. 35,000 c. 20,000 d. 25,000 3. If the cost of manufacturing a product is P30 and the item sells for P50, the markup percentage is _____ %. a. 67.7 b. 67.6 c. 66.7 d. 66.8
- XYZ Company's single product has a selling price of $15 per unit The fxed expenses were $100,000 This year the company po a net operating income of $40000. If sales are predicted to increase by 10% next year, how much would the increase in profit be Select one Da6000 Ob5600 OENO change in income d 14000 e4000Assume the following information: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 300,000 120,000 180,000 60,000 $ 120,000 Per Unit $40 16 $24 If unit sales increase by 21%, then the best of estimate of the new net operating income is: Note: Do not round your intermediate calculations.Company A sales Sales 100% Variable costs 33,000 Fixed Costs Net Income Company B Amount % of sales P110,000 30% Contibution Margin P 44,000 70% 66.000 30.000 P 14,000 100% 60% 40% 4 Amount P110,000 P 77,000 60,000 P 17,000 Assume Sales rise 10% in the next year,what will be the change in Company A's Income?(You answer should be in percentage) % of