If Alexi sells 15,000 units per year, how much is the residual income? If Alexi sells 16,000 units per year, what is the return on investment? Suppose the manager of Alexi division desires a return on investment of 22%. In order to achieve this goal, how many units per year Alexi division must sell? Suppose the manager of Alexi division desires an annual residual income of P45,000. In order to achieve this, how many units Alexi division should sell?
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Answer 1234 with solution
Alexi Division of Dezi Company makes and sells only one product. Annual data on Alexi division’s single products follows:
Unit selling price ............................. P50
Unit variable cost ............................. 30
Total fixed costs .............................P200,000
Average operating assets ............... 750,000
Minimum required
- If Alexi sells 15,000 units per year, how much is the residual income?
- If Alexi sells 16,000 units per year, what is the
return on investment ? - Suppose the manager of Alexi division desires a return on investment of 22%. In order to achieve this goal, how many units per year Alexi division must sell?
- Suppose the manager of Alexi division desires an annual residual income of P45,000. In order to achieve this, how many units Alexi division should sell?
Step by step
Solved in 6 steps
- Tom Petty Co. produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price…………………………………. $260 100.00% Variable Expenses……………………….. $ 94 36.15% Contribution margin……………………. $166 63.85% Fixed expenses are $620,000 per month. The company is currently selling 5,000 units per month. The marketing manager would like to cut the selling price by $20 and increase the advertising budget by $60,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 800 units. What should be the overall effect on the company's monthly net operating income of this change? Should Tom Petty Co implement the marketing manager’s proposal? Show your work.4.) Pearl, Inc. produces three products. Data concerning the selling prices and unit costs of the three products appear below: Product F Product G Product H Selling price................................... $50 $80 $70 Variable costs................................ $40 $50 $55 Fixed costs..................................... $15 $20 $12 Milling machine time (minutes).... 4 2 5 Fixed costs are applied to the products on the basis of direct labor hours. Demand for the three products exceeds the company's productive capacity. The milling machine is the constraint, with only 2,400 minutes of milling machine time available this week. Required: Given the milling machine constraint, which product should be emphasized? Support your answer with appropriate calculations. Assuming that there is still unfilled demand for the product that the company should emphasize in part (a) above, up to how much should the…Q4) Calculate Full Costing for the three years data following? 4 Marks Basic Data Selling price per unit sold……………………………………………………Rs. 25 Variable Manufacturing cost per unit produced………………………………Rs10 Fixed Manufacturing cost Per Year…………………………………….Rs.300,000 Variable selling and admin exp. Per unit sold…………………………………Rs.1 Fixed selling and admin exp. Per Year………………………………….Rs.200,000 Year 1 Year 2 Year 3 Units in Beginning inventory…………………………….. 0 0 ? Units in ending Inventory………………………………… 0 ? 0 Units produced is 44400 for year 1, units produced for year 2 is 55500 and for year 3 units produced is 33300 Units sold for year all three year is 44400
- 11. A company makes three products, details of which are as follows: Product P Q £ £ 8.00 18.00 6.50 12.00 0.50 1.00 Selling price Variable cost per unit unit Fixed cost per Profit per unit Hours used per unit Maximum sales R £ 22.00 15.00 4.50 4.00 1.50 3.00 0.5 1.5 500 300 2 40011. George Corporation has the following information for the current year: Selling price per unit Variable costs per unit 10.00 $ 6.00 $1,000.00 Fixed costs Required: Prepare a cost-volume-profit graph identifying the following items: Total fixed costs line Total variable costs line Total costs line Total revenues line Breakeven point in sales dollars Breakeven point in units Profit area Loss area А. В. С. D. E. F. G. Н. 6,000 5,000 4,000 3,000 2,000 1,000 100 200 300 400 500 Qty (# Units) 3 Dollars ($)Problem 1. (40%) The EG Company produces and sells one product. The following data refer to the year just completed:Units in beginning inventory ..........................0Units produced................................................8,900Units sold........................................................8,500Units in ending inventory ...............................400Variable costs per unit:Direct materials ...........................................$26Direct labor..................................................$25Variable manufacturing overhead ...............$4Variable selling and administrative expense.................................................................$4Fixed costs:Fixed manufacturing overhead ....................$249,200Fixed selling and administrative expense....$17,000Sales Price is $100 per unit.Required: b. Prepare an income statement for the year using absorption costing.c. Prepare a contribution format income statement for the year using variable costing.d.…
- A company has assessed the profitability of its three products as shown here: Product A Product B Product C Total Sales (units) 3,000 5,000 2,000 10,000 £ £ Price 15.00 10.00 5.00 Variable costs 6.00 4.00 3.00 Divisible fixed costs 2.00 1.00 0.50 Non-divisible fixed costs 2.00 2.00 2.00 Profit/(Loss) 5.00 3.00 (0.50) As a result of this, it has been suggested that Product C should be dropped. All other things being equal what would be the financial impact of dropping Product C? A B Profit would increase by £1,000. Profit would increase by £2,000. Profit would fall by £3,000. C D Profit would fall by £4,000. £Prepare a contribution margin format income statement; answer what-ifquestions Shown here is an income statement in the traditional format for a firm with a sales volume of 20,000 units. Cost formulas also are shown:Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $200,000Cost of goods sold ($36,000 1 $5.20/unit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140,000Gross profi t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,000Operating expenses:Selling ($9,200 1 $0.30/unit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,200Administration ($18,800 1 $0.50/unit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,800Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,000Required:a. Prepare an income statement in the…Calculate Variable costing and Full Costing for the three years data following? Basic Data Selling price per unit sold……………………………………………………Rs. 25 Variable Manufacturing cost per unit produced………………………………Rs10 Fixed Manufacturing cost Per Year…………………………………….Rs.300,000 Variable selling and admin exp. Per unit sold…………………………………Rs.1 Fixed selling and admin exp. Per Year………………………………….Rs.200,000 Year 1 Year 2 Year 3 Units in Beginning inventory…………………………….. 0 0 ? Units in ending Inventory………………………………… 0 ? 0 Units produced 39930 for year 1, units produced for year 2 is 4991250 and for year 3 units produced 29947.5 Units sold for year all three year 39930
- Calculate Variable costing and Full Costing for the three years data following? Basic Data Selling price per unit sold……………………………………………………Rs. 25 Variable Manufacturing cost per unit produced………………………………Rs10 Fixed Manufacturing cost Per Year…………………………………….Rs.300,000 Variable selling and admin exp. Per unit sold…………………………………Rs.1 Fixed selling and admin exp. Per Year………………………………….Rs.200,000 Year 1 Year 2 Year 3 Units in Beginning inventory…………………………….. 0 0 ? Units in ending Inventory………………………………… 0 ? 0 Units produced 3946 multiply by 10 for year 1, units produced for year 2 is 3946 is 1.25 times and multiply by 10 and for year 3 units produced 3946 is 0.75 times and multiply by 10. Units sold for year all three year 3946 multiply by…Show step by step solution: Cost-volume-profit analysis. PJ Company produces one type of sunglasses with the following costs and revenues for the year: Total Revenues............................................................................................P5,000,000 Total Fixed Costs ....................................................................................... 1,000,000 Total Variable Costs .................................................................................... 3,000,000 Total Quantity Produced and Sold.............................................................. 1,000,000 Units What is the selling price per unit? What is the variable cost per unit? What is the contribution margin per unit? What is the break-even point in units?The manufacturing and selling data for Abracadabra Inc. for the year 2018 is given below: -- - - Selling price …………...…………………….. $33 /unit- - - Finished goods (beginning).............. 10200 units- - - Production ……………………………………. 86780 units- - - Sales …………………………………………….. 79800 unitsVariable costs:- - - Manufacturing ………….………………….. $7 /unit- - - Selling and administrative …………….. $4 /unitFixed costs:- - - Manufacturing ……..………………………… $312000 /year- - - Selling and administrative ……………… $294000 /yearAssuming costs per unit were consistent over the years in both the costing methods, prepare the followings in the box below:(a) Income statement using absorption costing.(b) Income statement using variable costing.(c) Reconciliation of net operating incomes