e books of V-cut Company shows that the business has a fixed cost of 20 million pesos annually. Its main product - Potato Chips has a revenue of PHP 250 per unit and PHP 100 variable cost. (a) Determine the breakeven quantity per year, and (b) Annual profit if 500000 units are sold.

e books of V-cut Company shows that the business has a fixed cost of 20 million pesos annually. Its main product - Potato Chips has a revenue of PHP 250 per unit and PHP 100 variable cost. (a) Determine the breakeven quantity per year, and (b) Annual profit if 500000 units are sold.

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

See similar textbooks

Related questions

Q: Meman

A: Part 2: Explanation:Step 1: Calculate the contribution margin per unit:Contribution Margin Ratio =…

Q: A firm sells a single product for ₱100 per unit. The firm’s fixed expenses total ₱500,000 per year.…

A: Selling price (P) = ₱100 Fixed cost (F) = ₱500000 Variable cost (V) = ₱40 Commission (C) = ₱5…

Q: Based on the facts of Easy Problems Corp. if fixed costs will increase by Php 20,000.00, the break…

A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…

Q: Posters.com is a small Internet retailer of high-quality posters. The company has $740,000 in…

A: Return on Investment = Net operating income / Average operating assets Computation of the net…

Q: Posters.com is a small Internet retailer of high-quality posters. The company has $800,000 in…

A: Return on investment :— It is calculated by dividing net operating income by average operating…

Q: Easy Problems Corp. produces and sells a single product. The selling price is Php 25.00 and the…

A: Contribution=Selling price-Variable cost×Number of units sold=Php. 25-Php. 15×11,000=Php. 110,000

Q: (a) Calculate the following: i. Break-even point in packets and value. ii. Total net profit for the…

A: Expected total Sales = 300000 Packets * RM 6 = RM 1800000. Variable Cost :- Cost of Coffee = 300000…

Q: Posters.com is a small Internet retailer of high-quality posters. The company has $890,000 in…

A: Formula Return on Investment =Net Operating Income/ Average Operating assets Sales Net…

Q: YZ LTD Charges INR 250 per Month to its Subscribers. It's margin per customer is 60%. It spends INR…

A: customer life time value: ustomer Lifetime Value (CLV) is the total predictable revenue your…

Q: Zira Ltd sells mobile gadgets for 15 each. The gadgets have a variable cost of 4 per unit, and…

A: Formula: Break even point in units = Fixed cost / Unit contribution margin

Q: A certain firm has the capacity to produce 650 000 units of a certain product per year. At present,…

A: Capactity - 6,50,000 units Operating capacity - 62% Annual Income PhP 41,95,000 Annual Fixed Costs -…

Q: The Break-even point in peso sales for ABC Company is Php360,000 and the Company's contribution…

Q: Liman Corporation has a single product whose selling price is $140 and whose variable expense is $60…

A: The target profit refers to the expected amount of profit that the entity wants to achieve. The…

Q: uired 1 Required 2 plete the following table showing the relation between sales and return on…

A: Lets understand the basics. Contribution margin is a margin generated on the sales. It is a sales…

Q: Sheeza Corporation sells a single product for Rs. 15 per unit. Last year, the company's sales…

A: Fixed cost means the cost which do not vary with the level of output where as variable cost will…

Q: Based on the facts of Easy Problems Corp. If selling price will increase to Php 30.00, the break…

A: Answer - Calculation of Present Break Even Points in Units : Contribution = SP - Variable Cost =…

Q: per to $4,600,000 per year. The company's contribution margin ratio is 11%, which means that an…

A: Return on investment is the return expected to be generated from the investment that is made. Return…

Q: The TopCar Industries manufactures and sells car components. The current annual sales volume is…

A: Sales volume = 500000 units Selling price per unit = P 0.50 Annual expenses = P 80000

Q: Bluejeans Company has an after-tax profit of P140,000. Bluejeans hás a return on sa 20% and the tax…

A: Contribution margin- Contribution Margin is defined as selling price minus variable cost, and it…

Q: Camp Corporation produces a single product that it currently sells for P10. Fixed expenses are…

A: Advertising expense is a fixed cost. So the total fixed cost will be P130,000 (120,000 + 10,000).

Q: Hong Sdn Bhd makes a patented rubber tapping machine that sells for RM6. Each machine has a variable…

A: The question is based on the calculation of leverage. The degree of total leverage (DTL) is a…

Q: Coco Corp. manufactures boxes of chocolate candies. Its basic cost and profit information is…

A: Break even point :— It is the point of production where total cost is equal to total revenue. At…

Q: MERC Company makes small bags that sell Php 20.00 each. For coming year, management expects fixed…

A: Contribution margin per unit: The excess of the selling price over the variable costs is known as…

Q: Farukh Corporation sells a single product for Rs. 15 per unit. Last year, the company's sales…

A: No. of units sold = Total sales / Sales price per unit = Rs. 225,000 / Rs. 15 per unit = 15,000…

Q: Vinubhai

A: Return on investment measures how much net operating income a business generates in a certain period…

Q: The Saline Company produces and sells rock salt. its annual fixed cost was $10,000. during the past…

A: Break even means where there is no profit no loss. Break even point means where the total cost and…

Q: The following annual information is for Dexter Corporation: Product A Revenue per unit: $20.00…

A: Formula: Unit contribution margin = Selling price - Variable cost per unit

Q: Unan Inc. has decided to focus strictly on producing and selling one type of pillow. For the coming…

A: There are two type of costs which are incurred in business. Fixed costs are costs which will not…

Q: JPS Company manufactures and sells three products. Relevant per unit data concerning each product…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Based on the facts of Easy Problems Corp. With an average monthly sales of 11,000 units, the…

A: Margin of safety means sales revenue earned over and above breakeven sales revenue. Breakeven sales…

Q: Posters.com is a small Internet retailer of high-quality posters. The company has $810,000 in…

A: Contribution margin :— It is calculated by multiplying sales with contribution margin ratio. Net…

Q: XYZ Company's single product has a selling price of $15 per unit. The fixed expenses were $110,000.…

A: CVP analysis is considered as a decision-making tool that helps management to make strategies and…

Q: Posters.com is an Internet retailer of high-quality posters. The company has $750,000 in operating…

A: Contribution margin :— It is calculated by multiplying sales with contribution margin ratio. Net…

Question

The books of V-cut Company shows that the business has a fixed cost of 20 million pesos annually. Its main product - Potato Chips has a revenue of PHP 250 per unit and PHP 100 variable cost.

(a) Determine the breakeven quantity per year, and

(b) Annual profit if 500000 units are sold.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Flamengo Co is a sporting goods manufacturing company. Last year, report the following information: Sales S700,000 Cost of goods sold $130,000 Selling and administrative expense $260,000 At the beginning of the year, the value of operating assets was $800,000. At the end of the year, the value of operating assets was $1,200,000. Flamengo- Co. requires a minimum rate of return of 15%. Calculate the Margin. Round all numbers to two decimal places. Do not answer as a percentage. For example, if the Margin is 17.63%, you should type 0.18.
Milotic Corporation sells a single product for ₱25 per unit. Last year, the company's sales revenue was ₱245,000 and its net operating income was ₱29,250. If fixed expenses totaled ₱81,000 for the year, the break-even point in unit sales was _____________ units
(b) What is the break-even sales in RM for an operation that sells 615 products at RM 17.50 if each item costs RM 7.05 to produce and the fixed costs for the operation are RM 3,700/month?
Dog
Xeta Inc., sells a box for $15 each. The box have a variable cost of $4 per unit, and the products' fixed operating costs are at $220,000 per year. The company's capital structure includes 55% debt and 45% equity. Annual interest expense is $25,000, and the corporate tax rate is 35%. 1.Calculate the break-even point in units. 2.If it sells 25,000 units, calculate the firm's EBIT and net income.
Based on the facts of Easy Problems Corp. If variable costs per unit will go up by Php 5.00, the peso break -even sales will increase (decrease) to
Based on the facts of Easy Problems Corp. The margin of safety ratio (MSR) and the break-even sales ratio (BESR) are?
ABC Company had sold 500 pieces of handbags at 150 pesos each in just one month period. The company is positive to increase their sales by 10% per month. The cost of goods sold is 75 pesos. The operating and administrative expenses is 50,000 pesos per month. How much will be the total income at end of the year without EBIT? approximately 201.613 pesos O approximately 201,964 pesos O approximately 201,911 pesos O approximately 201,113pesos

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS