JaJa m Manufacturing incurs annual fixed costs of P250,000 in producing and selling a single product. Estimated unit sales are 187,500. An after-tax income of P75,000 is desired by management. The company projects its income tax rate at 40 percent. What is the maximum amount that Harry can expend for variable costs per unit and still meet its profit objective if the sales price per unit is estimated at P6?

Q: 7. Harris Manufacturing incurs annual fixed costs of $250,000 in producing and selling a single…

A: Fixed cost: Fixed cost refers to those costs that will incur irrespective of the production process.…

Q: A company invests $16,000 to produce a product that will sell for $45.60. Each unit costs $8.35 to…

A: Investment cost = $ 16,000 Selling price = $ 45.60 Cost per unit = $ 8.35 Profit per unit = Selling…

Q: A) The company's projected profit for the coming year is as follows: Total P 200,000' 120,000 80,000…

A: Hi student Since there are multiple questions, we will answer only first question.O

Q: 1) What were Lakspur's total fixed costs? if the average selling price was $2.05, howw much gross…

A: • Total fixed costs = $400,000This is calculated by multiplying the fixed cost per unit ($0.20) by…

Q: Coney Adventures Inc. sells one product for $5. The variable cost per item is $3, and the fixed…

A: Coney Adventures Inc. sells its product at $ 5 per unit which has a variable cost of $ 3 and has a…

Q: Because Lanisha Motors operates in a very competitive environment, it is essential for the…

A: The number of units that must be sold to cover both variable and fixed costs must be ascertained in…

Q: Bradley Company sells a product that has variable costs of $54 each and a sales price $79 each.…

A: Break even analysis and contribution margin analysis  is an important tool in cost volume profit…

Q: KLM Company produces a single product. The selling price is OMR 40 a unit and the variable costs is…

A: The target sales required to achieve the target profit can be calculated with the help of CVP…

Q: Suppose ABC Corp’s break-even point is revenues of $1,100,000. Fixed costs are $660,000A ACalculate…

A: Contribution Margin is the excess of unit selling price on the unit variable costs. Contribution…

Q: Kareem Co. produces a single product that is sold for $85 per unit. If the variable costs per unit…

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

Q: ,000. d) Calculate the sales revenue required to produce an after tax profit of R20,000 if the tax…

A: Breakeven Point is the point at which the fixed cost equals the contribution margin. The Point at…

Q: Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit…

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…

Q: Marengo Corporation's total costs at breakeven are $80,000 when it sells 20,000 units. These costs…

A: Fixed cost =  total costs  x 75% = $80000 x 75% = $60,000 Variable cost =  total costs  x 25% =…

Q: XYZ Company's single product has a selling price of $25 per unit. Last year the company reported…

A: Computation of contribution per unit: Total sales=Variable expensesVariable expenses…

Q: 4. A firm produces and sells a product with a contribution margin of $32 per unit. The firm is…

A: Lets understand the basics. Break even point is a point at which no profit and loss arise. In other…

Q: company sells its product at P30 per unit. Unit variable cost is P22 and total fixed costs total to…

A: At indifferent point profit to the company will be same in both proposals.

Q: Dirth Company sells only one product at a regular price of £7.50 per unit. Variable expenses are 60…

A: The contribution margin ratio is calculated as contribution margin divided by sales revenue. The…

Q: Miko Firm is assessing its cost structure. It has P680,000 in fixed operating costs, P5.80 in…

A: Break-even Point refers to that point where the cost of production is equal to the revenue of a…

Q: George Manufacturing incurs annual fixed costs of P130,000 in producing and selling a single…

A: In first question , we need to calculate sale price per unit having a series of formulas defined in…

Q: Sunshine Company’s single product has a selling price of P25 per unit. Last year the company…

A: Required sales in units can be calculated by dividing sum of fixed cost and profit with contribution…

Q: A company, subject to a 25% tax rate, desires to earn P600,000 of after-tax income.  How much should…

A: Tax rate = 25% Desired earning after tax  = P600,000  Earning before tax shall be added  to fixed…

Q: Alexander Corporation sells its only product for $30 per unit. Its variable cost per unit are 40% of…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

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

A: Before tax profit = P140,000 / 70% = P200,000 Fixed cost = P100,000 Sales = P200,000 / 20% =…

Q: 1. Hems Manufacturing incurs annual fixed costs of P250,00oo in producing and selling a single…

A: Here in this question, we are required to calculate how much maximum variable cost per unit hems can…

Q: NUBD Co. incurs annual fixed costs of P250,000 in producing and selling a single product. Estimated…

A: The break even sales are the sales where business earns no profit no loss during the period.

Q: The manufacturer of a product that has a variable cost of $2.50 per unit and total fixed cost of…

A: The break-even point (BEP) appears to be an accounting term that refers to the point where a…

Q: Al-Naseem Company fixed costs are OMR 120,000 per year. The variable cost of each unit is OMR 6, and…

A: Cost accounting is the process of recording all the costs related to the production of a good. Cost…

Q: The manufacturer of a product that has a variable cost of $2.60 per unit and total fixed cost of…

A: 1. To break even, the total cost must equal the total revenue. The unit contribution margin is the…

Q: Assuming that the company has a current sales of $120,000 with a 25% margin of safety. Its…

A: Break even sales = Fixed cost/contribution  ratio

Q: Product X sells for $50 with variable costs of $36 per unit and annual fixed costs of $1,200,000. If…

A: In this question, we need to compute the number of units to be sold if the company wants to earn an…

Q: Frank Corporation manufactures a single product that has a selling price of S30.00 per unit. Fixed…

A: Formula used: Units to be sold to earn a target profit = ( Fixed cost + target profit ) / Unit…

Q: The sales manager believes that a reduction in the sales price to OMR 20 will result in orders for…

A: The calculation of profit when there is a reduction in sale price is shown hereunder :

Q: Marsh Motors sells 5,000 motors a year for $30 apiece. Variable costs are $8 per unit, and total…

A: The break even sales units are the sales where business earns no profit no loss during the year.

Q: Choo Choo Corp produces and sells a single product whose selling price is $100.00 per unit and whose…

A: The break even sales are the sales where business earns no profit no loss during the period. The…

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: Redlands Inc. sells one product for $5. The variable cost per item is $3, and the fixed costs for…

A: The differential analysis is performed to analyse the different alternatives available to the…

Q: Pigwidgeon Company charges a selling price of $30 per unit for its single product, incurs variable…

A: TARGET SALES Target Sales are the Estimated Sales Required to Achieve the Desired Profit. Target…

Q: Clockmaker Ltd. makes a product called wallet. Managers from Clockmaker Ltd. want to achieve a…

A: The contribution Margin is calculated as difference between sales and variable cost. The break even…

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.