Required information[The following information applies to the questions displayed below.]Information for Pueblo Company follows:Sales RevenueLess: Total Variable CostContribution MarginProduct A$ 51,000$ 11,500$ 39,500Target salesProduct B$ 68,000$ 30,150$ 37,850Required:The total fixed costs are $30,000.Determine target sales needed to earn a $26,000 target profit.Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

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

Required information [The following information applies to the questions displayed below.] Information for Pueblo Company follows: Sales Revenue Less: Total Variable Cost Contribution Margin Product A Product B $ 51,000 $ 68,000 $ 11,500 $ 30,150 $ 39,500 $ 37,850 Required: The total fixed costs are $30,000. Determine target sales needed to earn a $26,000 target profit. Note: Do not round intermediate calculations. Round your answer to 2 decimal places Target sales

Required information [The following information applies to the questions displayed below.] Information for Pueblo Company follows: Sales Revenue Less: Total Variable Cost Contribution Margin Product A Product B $ 51,000 $ 68,000 $ 11,500 $ 30,150 $ 39,500 $ 37,850 Required: The total fixed costs are $30,000. Determine target sales needed to earn a $26,000 target profit. Note: Do not round intermediate calculations. Round your answer to 2 decimal places Target sales

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 11MCQ: Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett...

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Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true? a. Sales will increase by 300,000. b. Overall operating income will increase by 2,600. c. Overall operating income will decrease by 25,000. d. Overall operating income will not change. e. Common fixed cost will decrease by 27,600.
Required information [The following information applies to the questions displayed below.] Information for Pueblo Company follows: Sales Revenue Less: Total Variable Cost Contribution Margin Weighted average CM ratio Product A Product B $ 60,000 $ 31,490 $ 28,510 Required: Determine Pueblo's (overall) weighted-average contribution margin ratio. Note: Do not round intermediate calculations. % $ 57,000 $ 11,800 $ 45,200
Required information [The following information applies to the questions displayed below.] Information for Pueblo Company follows: Sales Revenue Less: Total Variable Cost Contribution Margin Weighted average CM ratio Product A $ 52,000 $ 10,000 $ 42,000 Required: Determine Pueblo's (overall) weighted-average contribution margin ratio. Note: Do not round intermediate calculations. % Product B $ 66,000 $18,320 $ 47,680
Required information [The following information applies to the questions displayed below.] Information for Pueblo Company follows: Sales Revenue Less: Total Variable Cost Contribution Margin Product A $ 57,000 $ 11,800 $ 45,200 Break-even sales dollars Product B $ 60,000 $ 31,490 $ 28,510 Required: Determine its break-even sales dollars if total fixed costs are $30,000. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
The equation which reflects a CVP income statement is a. Sales Variable costs - Fixed costs = Net income. b. Sales + Fixed costs = Variable costs + Net income. c. None d. Sales Variable costs + Fixed costs = Net income. e. Sales Cost of goods sold + Operating expenses + Net income. Clear my choice Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit of $80 000. If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $160 000, how many units must be sold to earn income of $80 000? a. 30 000 units b. 1 200 000 units c. 80 000 units d. 120 000 units None Clear my choice A company desires to sell a sufficient quantity of products to earn a profit of $300 000. If the unit sales price is $20, unit variable cost is $12, and total fixed costs are $600 000, how many units must be sold to earn net income of $300 000? 90 000 units a. b. None c. 67 500 units d. 112 500 units e. 168 750 units Clear my choice
) From the following information relating to quick standards Ltd., you are required to find out (i) C/M ratio (ii) break-even point (iii) calculate the volume of sales to earn profit of ` 6,000/- Total Fixed Costs ` 4,500 Total Variable Cost ` 7,500 Total Sales ` 15,000
REQUIRED Use the information provided below to answer the following questions independently: 3.2.1 If Kempster Limited decides on a profit objective of R400 000, calculate the target sales volume. 3.2.2 Calculate the total Marginal Income and Profit/Loss if the company decides to reduce the selling price to R28 per unit. INFORMATION Kempster Limited expects to incur the following costs to produce and sell 20 000 units of its product at R 30 each: Variable manufacturing cost R14 per unit Fixed manufacturing cost R100 000 Variable marketing cost 20% of sales Fixed marketing and administrative cost R40 000
Required information [The following information applies to the questions displayed below.] Monterey Co. makes and sells a single product. The current selling price is $15 per unit. Variable expenses are $9 per unit, and fixed expenses total $27,000 per month. (Unless otherwise stated, consider each requirement separately.) e. What questions would have to be answered about the cost-volume-profit analysis simplifying assumptions before adopting the price cut strategy of part d? (Select all that apply.) Check All That Apply Does the increase in volume move fixed expenses into a new relevant range? Does the increase in volume move variable expenses into new relevant range? Are variable expenses really linear? Are fixed expenses really linear?
Following information is related to Product X of Zempa Company: Current replacement cost $230 Cost to distribute $42 Historical cost Normal profit margin Selling price $215 $36 $245 If lower-of-cost-or-market rule (LCM Rule) is applied, then the value of Product X that would be reported in the balance sheet is: a.
II. George Corporation has the following information for the current year: Selling price per unit Variable costs per unit 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 A. B. C. D. E. F. G. H. Dollars (S) Profit area Loss area 6,000 5,000 4,000 3,000 2,000 1,000 S 10.00 6.00 S $1,000.00 0 100 200 300 400 Qty (# Units) 500
The following pertained to Lomi Inc.: Product Sales Price Unit Variable Cost Projected sales A P50 P34 5,000 units B 20 15 25,000 units C 25 16 20,000 units Fixed costs amounted to P154,000. Instructions: 2. Describe its net income if the sales mix will be based on peso sales. Why is the result not applicable in aiding management in decision-making?
Required information [The following information applies to the questions displayed below.] Trevino Company makes and sells products with variable costs of $24 each. Trevino incurs annual fixed costs of The current sales price is $87. Note: The requirements of this question are interdependent. For example, the $252,000 desired profit introduce Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requiremen applies to the subsequent requirements. f. If variable cost rises to $30 per unit and fixed costs are $280,000, what level of sales is required to earn the desired your answer in units and dollars. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Req F1 If variable cost rises to $30 per unit and fixed costs are $280,000, prepare an income statement using the contribution margin format. Req F2 TREVINO COMPANY Income Statement Sales Variable cost Contribution…