FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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If the imputed charge is 15% and Tan wants to achieve a residual income target of P 1,460,000, what will costs have to be in order to achieve the target?
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- A company requires $1400000 is sales to meet its net income target. Its contribution margin is 50% and fixed costs are $300000. What is the company's target net income?arrow_forwardE3 Doni is a self-manufactured, he wants to calculate how much the price for their new product if the targeted initial margin is 65%; given all-in production cost is $15, transport & logistic cost is 5.8% from the production cost, and revenue sharing cost would be 12% from landing cost (production + transport + logistic).arrow_forwardA mark up of 15% on sales is equivalent to what markup on cost?arrow_forward
- Good day Please refer to attachment for question.arrow_forwardIf fixed costs are $1,226,000, the unit selling price is $220, and the unit variable costs are $100, what is the break-even sales (units) if fixed costs are increased by $30,100?arrow_forwardThe NUBD Co. is expecting an increase in fixed costs by P78,750 upon moving their place of business to the downtown area. Likewise it is anticipating that the selling price per unit and the variable expenses will not change. At present, the sales volume necessary to breakeven is P750,000 but the expected increase in fixed costs, the sales volume necessary to breakeven will go up to P975,000. Based on these predictions, what would be the required peso sales to earn P35,000 in the coming year?arrow_forward
- 3) If demand for 2022 is instead 2,500 units should the company pay to increase their capacity? Why? Please explain your calculations and reference to the chart in Figure 1. Assume units are sold at the normal price. Please mention the concept of incremental profits. Hint: If you expand capacity, you will have to pay additional fixed costs of $25,000. Remember that fixed costs are fixed within the relevant range. If you expand capacity then you are outside this range. If you expand capacity then you can make revenue on 500 additional units at the normal price and would pay variable costs on 500 additional units. Please consider the incremental profit or loss of expanding capacity. The incremental profit is the increase in revenues minus the increase in costs of adding 500 more units. If the incremental profit of expanding capacity is positive then you should do so.arrow_forwardd. What would happen to the break-even point if the selling price was raised to $33 butvariable costs rose to $24 a unit?arrow_forwardIf the selling price per unit is $60, the variable expense per unit is $20, and total fixed expenses are $240,000, what are the breakeven sales in dollars?arrow_forward
- The B Co. is expecting an increase in fixed costs by P78,750 upon moving their place of business to the downtown area. Likewise it is anticipating that the selling price per unit and the variable expenses will not change. At present, the sales volume necessary to breakeven is P750,000 but the expected increase in fixed costs, the sales volume necessary to breakeven will go up to P975,000. Based on these predictions, what would be the required peso sales to earn P35,000 in the coming year? A.P1,175,000 B.P950,000 C.P425,000 D.P1,075,000arrow_forwardThe NUBD Co. is expecting an increase in fixed costs by P78,750 upon moving their place of business to the downtown area. Likewise it is anticipating that the selling price per unit and the variable expenses will not change. At present, the sales volume necessary to breakeven is P750,000 but the expected increase in fixed costs, the sales volume necessary to breakeven will go up to P975,000. Based on these predictions, what would be the required peso sales to earn P35,000 in the coming year? A. P1,175,000 B. P950,000 C. P425,000 D. P1,075,000arrow_forward
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