Multiproduct breakeven analysis and target profit, taxes Pursuit Company produces two products: Bric andBrac. The following table summarizes the products' details and planned unit sales for the upcoming period:Bric BrAc Sellingpriceperunt...........$S25$30 Variablecostperunit ...$14$17 Planned unit salesvolume . . . . . . 800, 000 400,000 Pursuit Company has total fixed costs of $10 million and faces a tax rateof 30%. Required (a)What is Pursuit Company's expected profit at the planned level of sales? (b)Assuminga constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to break even? (c)Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to earnan after-tax income of $910, 000 ?

CVP analysis, or cost-volume-profit analysis, is a management accounting technique used to analyze…

Answered: Multiproduct breakeven analysis and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Total Sales are 500,000 OMR, Total Variable cost is 150000 OMR. Fixed cost is 200000 OMR Calculate Total profit Select one: O a. 265000 OMR O b. 180000 OMR O c. 150000 OMR O d. 500000 OMR
18. Assume the company's monthly target profit is $17,000. The dollar sales to attain that target profit is closest to:A. $387,392B. $635,069C. $671,925D. $993,313
Please help me figure a-e
Activity 2: Complete me! Directions: Fill in the needed data to complete the table below. Unit B.E.P in B.E.P in Selling Price per Unit Variable Cost per Unit Total Fixed Cost Contributio Units Pesos n Margin P19,500.00 P15.00 P13.00 P960.00 P18.00 P15.00 P24.00 P3.00 69 P34.00 P3.00 150 P27.00 P5.00 100 2. 3. 4.
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The following information is available for Concord Corporation: Total fixed $150000 expenses == Total variable. 320000 expenses Sales Cost of goods sold $570000 370000 A CVP income statement would report O gross profit of $250000, contribution margin of $420000. Ogross profit of $200000. O contribution margin of $250000.
Cost-Volume-Profit Chart For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of $75, and a unit selling price of $125. The maximum sales within the relevant range are $2,500,000. a. Construct a cost-volume-profit chart on a sheet of paper. Indicate whether each of the following levels of sales (units or dollars) is in the operating profit area, operating loss area, or at the break-even point. 4,800 units 12,000 units $1,500,000 20,000 units $2,500,000 b. Estimate the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (a). c. The graphic format permits the user to visually determine the and the * for any given level of
CVP Analysis, *What IT?" AnalysisKevin Co. projected contribution-format income statement for the upcoming month is shownBelow Sales (500 units) $10000Variable expenses. 4000Contributions margin. 6000Fixed expenses. 1000Net operating income. 5000Required:a.) Compute the breakeven point in units.b) Compute the breakeven paint in dollars.c.) If the company wishes to earn a monthly target profit of $10,000, how many units must be sold each month?d.) Compute the company's margin of safety. State your answer in both dollar and percentage terms,e.) The company's manager thinks that adding a salaried sales staff member at a cost of 52,000 per month will increase sales by $4,000 per month. If he is correct, what will be the net dollar advantage or disadvantage of making this change?t.) Refer to the original data, the company's manager believes that a new production process will improve profitability. He plans to add new machinery that will cut variable expenses…
Data concerning Homme Corporation's single product appear below: Per Unit $190 114 $76 Selling price Variable expenses........ Contribution margin Percent of Sales 100% 60% 40% The company is currently selling 2,000 units per month. Fixed expenses are $130,000 per month. Consider each of the following questions independently. This question is to be considered independently of all other questions relating to Homme Corporation. Refer to the original data when answering this question. The marketing manager believes that a $12,000 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? increase of $2,440 decrease of $12,000 increase of $14,440 decrease of $2,440
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