FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- If a company’s variable costs are 70% of sales, which formula represents the computation of peso sales that will yield a profit equal to 10% of the amount of sales when P equals sales in pesos for the period and FC equals total fixed costs for the period? a. P = .2/FC b. P = FC/.2 c. P = .27/FC d. P = FC/.27arrow_forwardThe selling price of a particular product is $81.00 per unit, the variable expense is $55.00 per unit, and the breakeven sales in dollars is $243,000, what are the total fixed expenses?arrow_forwardA product is sold at $80 per unit, the variable expense per unit is $20, and total fixed expenses are $600,000, what are the breakeven sales in dollars? (Do not round intermediary calculations and round your final calculation to the nearest dollar.) OA. $450,000 OB. $472,500 OC. $22,500 OD. $800,000arrow_forward
- Spice Inc.'s unit selling price is $50, the unit variable costs are $36, fixed costs are $118,000, and current sales are 10,900 units. How much will operating income change if sales increase by 5,400 units? Oa. $228,200 increase Ob. $152,600 increase Oc. $152,600 decrease Od. $75,600 increasearrow_forwardSpice Inc.'s unit selling price is $54, the unit variable costs are $40, fixed costs are $117,000, and current sales are 10,900 units. How much will operating income change if sales increase by 5,800 units? Oa. $81,200 increase Ob. $152,600 increase Oc. $233,800 increase Od. $152,600 decreasearrow_forwardThe selling price of a product is $75.00 per unit, the variable expense is $55.00 per unit, and the breakeven sales in dollars is $300,000, what are total fixed expenses? $80,000 $4,000 $300,000 $20arrow_forward
- The X Corp income statement resembles the following after 35,000 units were sold in 2020. Sales = $420,000 / $12 per unit Variable = $192,500 / $5.5 per unit Contribution Margin = $227,500 / $6.5 per unit Fixed Expense $110,000 Net Op Income $117,500 A. What is X Corp. breakeven point in units and dollars? B. What is X Corp. margin of safety in %, units, and dollars?arrow_forwardSolution method please.arrow_forwardThe company’s current selling price and variable cost per unit is P60 and 36 respectively. If the selling price is reduced by 5%, variable expenses reduced by P1.00, and fixed expenses increased to a total of P38,400, how many units would need to be sold to earn a net operating income of P21,000? 1,000 2,700 1,700 2,950arrow_forward
- Q2. Suppose that Nafitol Company has a fixed cost of ETB 35,000 and VC of ETB 1.75 per unit for its products. Let us further consider that selling price is birr 2.7 per unit. Required: A. Write the revenue and the cost equation of the company B. At what level of production output is the company Break-even? C. What is the amount of the revenue when the company produces 300,000 units? D. If the company plans to earn a profit of 7000, what amount of quantity has to be produced?arrow_forwardSpice Inc.'s unit selling price is $53, the unit variable costs are $34, fixed costs are $101,000, and current sales are 9,800 units. How much will operating income change if sales increase by 5,300 units? O a. $100,700 increase O b. $186,200 increase O c. $186,200 decrease O d. $286,900 increasearrow_forwardSpice Inc.'s unit selling price is $46, the unit variable costs are $31, fixed costs are $106,000, and current sales are 9,600 units. How much will operating income change if sales increase by 5,600 units? a. $144,000 decrease Ob. $228,000 increase Oc. $144,000 increase Od. $84,000 increasearrow_forward
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