FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Unit sales (a) Selling price per unit Variable cost per unit Traceable fixed expense TB MC Qu. 12A-46 Woodridge Corporation manufactures numerous... Woodridge Corporation manufactures numerous products, one of which is called Alpha-32. The company has provided the following data about this product Multiple Choice $1,375,220 77,000 76.00 61.00 $1,323,000 $52.220 Help $ $ Management is considering increasing the price of Alpha-32 by 5%, from $76.00 to $79.80. The company's marketing managers estimate that this price hike would decrease unit sales by 5%, from 77,000 units to 73,150 units Assuming that the total traceable fixed expense does not change, what net operating income will product Alpha-32 earn at a price of $79.80 if this sales forecast is correct? Save & Exitarrow_forwardTough Tough makes two products, Rock and Hard and details are as follows: Rock Hard £ £ Selling price 20 25 Unit variable costs 11 13 Standard ratio of sales 60% 40% . Fixed costs are estimated at £1.02 million for the year and Tough is currently forecasting to generate total sales revenue of £4.4 million. Required: Calculate the break-even point in terms of total units and sales revenue, based on the forecast ratio of sales above. Sketch a profit-volume chart showing the situation in (a); show on the same chart the effect of changing the sales mix to 50% Rock and 50% Hard (keeping total forecast revenue the same). The company has realised that £325,000 of the fixed costs are only incurred by product Rock. Calculate the sales revenue required from Rock in order to cover the attributable fixed costs and provide a net contribution of £800,000 towards general fixed costs and profit.arrow_forwardTotal Fixed cost OMR 25000, Selling Price per unit OMR 20, and Variable cost per unit OMR 12, What will be the Quantity (units) of sales if it is desired to earn a profit of OMR 18000 Select one: O a. 3125 Units O b. 10000 Units O c. 2083.33 Units O d. 1000 Unitsarrow_forward
- Fast solve plzarrow_forwardE3arrow_forwardMultiproduct breakeven analysis and target profit, taxes Pursuit Company produces two products: Bric and Brac. The following table summarizes the products' details and planned unit sales for the upcoming period: Bric BrAc Sellingpriceperunt...........$S25$30 Variablecostperunit ... $14$17 Planned unit sales volume . . . . . . 800, 000 400,000 Pursuit Company has total fixed costs of $10 million and faces a tax rate of 30%. Required (a)What is Pursuit Company's expected profit at the planned level of sales? (b)Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to break even? (c) Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to earn an after-tax income of $910, 000 ?arrow_forward
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