Cad Ltd has the following information relating to chocolates produced.Unit sales priceVariable cost perunitSales mix $Fixed costsTarget profitO d. 25 000O a. 21 500O b. 27 750ChocO c. 30 000$5$370%Wicked$4$120%Vanilla Total$3$1.50How many units in total must be sold to earn the target profit? (Ignore taxes.)10%$21 500$32 250

1.Contribution per unit = Sales - Variable cost per unit2.Target profit = Total Contribution - Fixed…

Cad Ltd has the following information relating to chocolates produced. Unit sales price Variable cost per unit Sales mix $ Fixed costs Target profit O d. 25 000 a. 21 500 Ob. 27 750 Choc O c. 30 000 $5 $3 70% Wicked $4 $1 20% Vanilla Total $3 $1.50 How many units in total must be sold to earn the target profit? (Ignore taxes.) 10% $21 500 $32 250

Cad Ltd has the following information relating to chocolates produced. Unit sales price Variable cost per unit Sales mix $ Fixed costs Target profit O d. 25 000 a. 21 500 Ob. 27 750 Choc O c. 30 000 $5 $3 70% Wicked $4 $1 20% Vanilla Total $3 $1.50 How many units in total must be sold to earn the target profit? (Ignore taxes.) 10% $21 500 $32 250

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. Assume that only one product is being sold in each of the four following case situations: Variable FC EBIT Units Sales Sold cm Per unit Expenses 1 15,000 £180,000 £ 120,000 £? £50,000 £? 2 ? £ 100,000 £? £ 10 £32,000 £8,000 3 10,000 £? £70,000 £ 13 £? £12,000 29 4 6,000 £300,000 £? £? £100,000 £(10,000)
REQUIRED Use the information provided below to answer the following questions independently: 3.2.1 If Kempster Limited decides on a profit objective of R400 000, calculate the target sales volume. 3.2.2 Calculate the total Marginal Income and Profit/Loss if the company decides to reduce the selling price to R28 per unit. INFORMATION Kempster Limited expects to incur the following costs to produce and sell 20 000 units of its product at R 30 each: Variable manufacturing cost R14 per unit Fixed manufacturing cost R100 000 Variable marketing cost 20% of sales Fixed marketing and administrative cost R40 000
Zachia Ltd provides the following data regarding its four product lines: Product Sales mix Weighted average contribution margin per unit (WACMU) Fixed costs Desired profit after tax w Y 60 20 15 $13.7 $71,000 $33,950 The corporate tax rate is 30% Required Calculate the number of units of Product X that must be sold in order to achieve the desired after-tax profit?
Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: GK LQ XK Selling price per unit $ 326.11 $ 543.37 $ 519.00 Variable cost per unit $ 252.05 $ 420.86 $ 397.71 Time on the constraint (minutes) 4.00 8.00 8.00 Required: a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. b. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your answer to 2 decimal places.) A. GK LG QX B. Maximun Amount
Kelly Company has the following data: Sales Price per unit $590 Variable Cost per unit $413 Total Fixed Costs $10,000 If the owner wants a $20,000 target profit, what would be the amount of sales reversr e tr answer to the nearest dollar.) O $42,857 O $66,667 O $100,000 O $28,571
Company XYZ is producing and selling 2,500 . At this level , the selling price per unit is $10, the variable expenses per unit is $3 and fixed expenses are \$1,5 . How much is the profit ? a. $ 6,000 b. $11,000 c. 8,500 d. 16,000 e.13,500
A firm sell a single product for $6. Its variable cost per unit is $4 and fixed costs are $50. Ignoring income taxes, the amount of sales revenue needed for $20 profit is Select one: a. $210. b. $150. c. $35. d. $25.
9. The XYZ Co. has the following unit and mix data: Products X-210 Y-350 Total Unit sales price $100.00 $80.00 Unit contribution margin 15.00 24.00 Sales mix in ($) 80% 20% Fixed costs $99,000 Desired income before taxes @ tax rate 40% 24, 750 How many units of Y-350's have to be sold at the breakeven point? a. 3,750 b. 1,375
Burnem Inc. manufactures thumb drives and sells them to a distributor. Burnem's total cost and total revenue (in dollars) for x thumb drives are given by the following equations. Total cost = 6(x + 4716) and Total revenue = 15x (a) How many thumb drives must Burnem sell to break even? X = thumb drives (b) What is the selling price of each item? $ (c) What are the fixed costs? $ (d) What is the marginal profit per item? $
Salalah Company has the following information: Total Fixed cost OMR 20000 Selling price per unit OMR 25 Variable cost per unit OMR 15 What will be the amount of sales if it is desired to earn a profit of OMR 5000? Select one: a. OMR 62500 b. None of the options c. Units 2500 d. OMR 43750
If selling price $300 per unit Variable cost $250 per unit Fixed cost $50000 Required: If selling price $300 per unit Variable cost $250 per unit Fixed cost $50000 Required: d) Calculate the Contribution/Sales Ratio of the product. e) Find the breakeven point in sales revenue. f) Calculate the sales revenue that is required to generate a profit of $40000.
Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Flyer's current full cost for the product is $44 per unit. In order to meet the new target cost, how much will the company have to cut costs per unit, if any? Oa. $1 Ob. $3 Oc. $0 Od. $2

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