Shalom Company manufactures Peace Products and sells it at P500 per unit. Variable manufacturing costs to manufacture is P200 per unit, while it incurs P150 per unit to sell. The fixed costs to manufacture and sell are P150,000 and P120,000, respectively. (1) How many units should Shalom Company sell to break-even? (2) If the company targets to earn profit of P300,000, how many units should Company sell?
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- Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.Foris Company's product sells for P16 and has a variable cost per unit of P12. Fixed costs are P120,000. a. Compute the break-even point in pesos.b. Compute the number of units Foris must sell to earn a P30,000 profit.c. Foris has a target profit of P36,000 and expects to sell 30,000 units. Compute the selling price Foris must charge to earn the target profit.d. Foris wants to keep its selling price at P16 per unit and earn a 10% return on sales. Calculate the number of units Foris must sell to meet the target.A company manufactures and sells a single product whose selling price is P500 and whose variable expense is P300 per unit. The company’s monthly fixed expense is P120,000. Required:1. Solve for the unit sales that are required to earn a target profit of P80,000. 2. If the company wants to earn a profit of P200,000, how much should be the sales revenue?
- The Colits Corp. sells products for P200 each. Variable costs are P150 per unit. Fixed Costs are P800,000. How much sales (in pesos) must be reached to realize a net income of 15% of sales?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 R30 each: Variable manufacturing cost R14 per unit Fixed manufacturing cost R100 000 Variable marketing cost 20% of sales Fixed marketing and administrative cost R40 000Pimpton Plows sells its product for $50. Its variable cost per unit is $19.00. Fixed costs total $434,000.How many units does the company need to sell to breakeven?What are the total sales in dollars at the breakeven point?How many units does the company need to sell to earn a profit of $155,000?
- What is the breakeven points in units? UrTurn sells its products at P80 per unit with the unit variable cost of P55. Its fixed cost is P81,000. How many units must be sold to achieve the following (tax rate is at 40%)Hips & Co produces a product that sells for R40.00 per unit. Variable costs to manufacture the unit amount to R30.00 per unit. Fixed costs and expenses are going to amount to R50,000 per period. a) Calculate the break-even point in Sales. b) Calculate the pre-tax profits to be expected on sales of R400,000. c) Calculate the sales required to produce a pre-tax profit of R40,000. d) Calculate the sales revenue required to produce an after tax profit of R20,000 if the tax rate is 25%. e) If the company wished to increase the after tax profit by R5,000 what increase in sale revenue is required? f) If basic salaries to the sales personnel were to be increased by R4,000, calculate the increase in sales that would be required in order to cover the increase. g) The sales manager believes that sales revenue can be increased by R80,000 if he is given additional funds for a sales promotion. What is the maximum amount that he may be allowed to spend so that the company does not lose money on…The Gomex Corp. sells product A for P90 each. Variable costs are P40 per unit. Fixed Costs are P585,000. Its current sales is P963,000. How much sales (in units) must be reached to realize a net income of P120,000 after income taxes, if tax rate is 25%?
- Rothko Ltd produces a single product for distribution to wholesalers. The product has a selling price of GH¢10 per unit. Variable costs of production are GH¢5 per unit, and fixed costs of production are GH¢50,000 per annum. The distribution of the product results in additional costs of GH¢1 per unit (variable) and GH¢11,500 per annum (fixed) 1. Calculate the expected break-even quantity and revenue. 2. Assuming Rothko Ltd predicts sales of GH¢200,000 for the year, calculate the expected profit (assuming sales and production are equal). 3. The company does have some idea about the effects on demand of changes in prices, advertising, competitors’ action, e Assume that a 5% decrease in price will increase total volume by 15% (in units); that an additional expenditure of GH¢7,500 on advertising will further increase the original volume by 5%, but that the increased production will result in an increase in variable costs of production by GH¢0.1 per unit in excess of 21,000 unit. Maximum…Jasmine Incorporated sells a product for $61 per unit. Variable costs per unit are $31, and monthly fixed costs are $252,000. Answer the following questions: Required: a. What is the breakeven point in units? b. What unit sales would be required to earn a target profit of $162,000 ? c. Assuming Jasmine achieves the level of sales required in part b, what is the margin of safety in sales dollars?KLM Company produces a single product. The selling price is OMR 40 a unit and the variable costs is OMR 25 a unit. The annual fixed costs of the business are OMR 5000. The business aims to make OMR 23500 profit during the forthcoming year. How much sales (OMR) required to achieve this target profit? Select one: a. OMR 58000 b. OMR 68700 c. OMR 76000 d. OMR 69000