The information below relates to a company that makes wooden chairs. For the forthcoming year, expectations are: - Fixed costs Variable costs Sales (50,000 chairs) £500,000 what is the break even point? (in numbers of chairs) 37,500 25,000 50,000 200,000 £150,000 £300,000
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- A company aims to generate £70,000 profit in the coming period, during which it expects to sell 20,000 units. It anticipates total fixed overheads of £195,000 and a marginal cost per unit of £24. What selling price must be charged for the target profit to be realised? a. £13.25 b. £27.50 c. £34.50 d. £37.25Beckham 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. £480,000Jamie Quinn, a sole proprietor, has the following projected figures for next year: Selling price per unit $150.00 Contribution margin per unit $45.00 Total fixed costs $630,000 What is the break-even point in dollars? a.$2,100,000 b.$426,000 c.$189,000 d.$900,000
- For XYZ Company , how many units of their product would have to be sold to yield a target operating income of $92,000 for the financial year ending 2021, assuming variable costs are $50 per unittotal fixed costs are \$8, , and the unit selling price is $60 ? a. 800 units b. 2,000 units c. 10,000 units d. 9,200 unitsLewis Production Company had the following projected information for the year: Selling price per unit Variable cost per unit Total fixed costs What is the break-even point in units? Select one: O. A. 60,000 units O B. 3,333 units OC. 5,000 units O D. 2,000 units £150 £90 £300,000Eva Freight Forwarding Company has estimated the following amounts for its next year: Total fixed expenses TL 832,500Sale price per unit 40Variable expenses per unit 25 How much the breakeven point (in units) CHANGE if Eva can move all its offices to cheaper areas to reduce (lower) fixed expenses by TL 22,500?
- Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin is $320,000 while the total fixed costs $80,000. If sales are expected to increase by 50% in the next period, how much would the new profit be ($)? O a. 336,000 O b. None of the given answers Oc 304,000 O d. 272,000 O e. 400,000A company requires $2700000 in sales to meet its net income target. Its contribution margin is 50%, and fixed costs are $300000. What is the target net income? $1350000 $1050000 $1600000 $450000Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin is $320,000 while the total fixed costs $80,000. If sales are expected to increase by 30% in the next period, how much would the new profit be ($)? O a. 272,000 O b. None of the given answers O c. 304,000 d. 336,000 e. 400,000
- 1. The more reliable sales amount from which to base projected sales is b) Latest year a) Latest month c) Latest 2 years d) Latest 5 years 2. Assume: Each factory worker can make 10 units of product per hour. Each worker's wage is P6 per hour. The total labor cost to finish 20,000 units of product is a) P6,000 b) P12,000 c) P120,000 d) P1,200,000 3. The following are steps in the financial planning process. Choose the correct order. A. Analysis and evaluation of projected financial statements B. Setting forecasts on sales, cost, expenses and capital expenditures C. Review and evaluation of projected financial plan D. Preparation of projected financial statements с) В-А-С-D a) C-A-D-B b) В-D-A-C d) A-C-B-D 4. Assume the following projections or forecasts: Retained earnings will increase by P75; current assets will increase by P200; current liabilities will spontaneously increase by P105. Funds need to increaseby a) P380 b) P240 c) P170 d) P20(d) Guido is a manufacturing firm producing several products for the local market. The following data relates to a new product called the ZITE 7 to be launched on 1 March 2022. Selling price £25 per unit Forecast sales volume 60,000 units Variable costs £20 per unit Fixed costs £180,000 Required: Using the information above, calculate the minimum sales revenue (£s) needed to meet a target profit of £60,000 |||| (0 UQuestion 3: Mirbat Company's financial information is given in the table below. Year 2020 2021 Sales (OMR) Fixed Costs 445000 500000 105000 150000 Variable Costs 245000 280000 You are required to calculate the following values for each year. The years are independent of each other. a) Margin of safety at a profit of OMR 50000 b) Profit when sales are OMR. 300000.