ABC Company breaks even at P300,000sales and earns P30,000 at P350,000 sales. Which of the following is true? Fixed costs are P20,000. Profit at sales of P400,000 would be P80,000. The selling price per unit is P3. Contribution margin is 60% of sales.
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- If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
- Maple Company has sales of P550,000 and has variable costs of P330,000.Fixed costs are P180,000. a. Compute the break-even point.b. Compute Maple's sales to earn a P50,000 profit.c. Compute the sales Maple would need to earn a 10% return on salesForis Company's product sells for P16 and has a variable cost per unit of P12. Fixed costs are P120,000. a. Compute the break-even point in pesos.b. Compute the number of units Foris must sell to earn a P30,000 profit.c. Foris has a target profit of P36,000 and expects to sell 30,000 units. Compute the selling price Foris must charge to earn the target profit.d. Foris wants to keep its selling price at P16 per unit and earn a 10% return on sales. Calculate the number of units Foris must sell to meet the target.DEF Corporation breaks even at P60,000 sales and earns P6,000 at P70,000 sales. Which of the following is true? Group of answer choices -Profit at sales of P80,000 would be P16,000. -The selling price per unit is P6. -The selling price per unit is P5. -Fixed costs are P4,000. -Contribution margin is 60% of sales. -Contribution margin is 50% of sales.
- Currently, a company has fixed costs of P32,500, a contribution ratio of 65%, and is selling its product for P12 per unit. If the sales price per unit is increased by P4, how much less will the break-even point in sales be when compared to the current condition? a.P14,411 b.P13,414 c.P17,500 d.P 5,932The Colits Corp. sells products for P200 each. Variable costs are P150 per unit. Fixed Costs are P800,000. How much sales (in pesos) must be reached to realize a net income of 15% of sales?Golden Corporation contemplates to market a new product. Estimated fixed costs is P1,000,000. The variable costs ratio is 60%. if the product is to be sold at P25 per unit, how many units should the company sell to earn a net income of P200,000?
- NUBD has fixed costs of P160,000. At a sales volume of P400,000, return on sales is 10%; at a P500,000 volume, return on sales is 18%. What is the break-even volume?Galactica Company has fixed costs of P100,000 and breakeven sales of P800,000. Based on this relationship, what is its projected profit at P1,200,000 sales?I PDB Manufacturing Corp. produces and sells a single product. The selling price is P25 and the variable costs is P15 per unit. The corporation's fixed costs is P100,000 per month. Average monthly sales is 11.000 units. 1. The corporation's contribution margin per unit and as a percent of sales (CMR) is? 2. The corporation's break-even point is? 3. If the corporation desires to eam profit of P20,000 before tax, it must generate sales of? 4. If the corporation pays corporate income tax at the rate of 25%, and it desires to eam after-tax profit of P21,000, it must generate sales of? 5. With an average monthly sale of 11,000 units, the corporation's margin of safety is? 6. The margin of safety ratio and the break-even sales ratio are? 7. If fixed costs will increase by P20,000, the break even point in units will increase(decrease) by? 8. If variable costs per unit will go up by P5, the peso break-even sales will increase (decrease) to? 9. If selling price will increase to P30, the…
