FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Nette and Company has sales of Php400,000 with variable costs of Php300,000, fixed costs of Php120,000 and an operating loss of Php20,000. By how much would Nette need to increase its sales in order to achieve a target operating income of 10% of sales?
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- James Company has a margin of safety percentage of 20%. The break-even point is £200,000 and the variable expenses are 45% of sales. Given this information, the operating profit is: Select one: O A. £27,500 O B. £18,000 O C. £22,500 O D. £22,000arrow_forwardAjani Company has variable costs equal to 40% of sales. The company is considering a proposal that will increase sales by $10,000 and total fixed costs by $6,000. By what amount will net income increase? A. $6,000 B. $4,000 C. $2,000 D. $0arrow_forwardSinclair Company's product has a selling price of £25 per unit. Last year the company reported a profit of £20,000 and variable expenses totalling £180,000. The product has a 40% contribution margin ratio. Because of competition, Sinclair Company will be forced in the current year to reduce its selling price by £2.00 per unit. How many units must be sold in the current year to earn the same profit as was earned last year? Select one: O A. 15,000 units O B. 12,000 units O C. 16,500 units O D. 12,960 unitsarrow_forward
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