Shalom Company manufactures Peace Products and sells it at P500 per unit. Variablemanufacturing costs to manufacture is P200 per unit, while it incurs P150 per unit to sell. Thefixed costs to manufacture and sell are P150,000 and P120,000, respectively. (1) How many unitsshould 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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Answered: Shalom Company manufactures Peace…

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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The Warren Watch Company sells watches for $26, fixed costs are $150,000, and variable costs are $15 per watch. What is the firm's gain or loss at sales of 8,000 watches? Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent.$ What is the firm's gain or loss at sales of 16,000 watches? Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent.$ What is the break-even point (unit sales)? Round your answer to the nearest whole number.units What would happen to the break-even point if the selling price was raised to $31? What would happen to the break-even point if the selling price was raised to $31 but variable costs rose to $21 a unit? Round your answer to the nearest whole number.
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Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Flyer's current full cost for the product is $44 per unit. If the company cannot cut costs any lower than they already are, the profit margin on sales to meet the market selling price would be a.10.3% b.7.3% c.8.3% d.9.3%
The Warren Watch Company sells watches for $29, fixed costs are $180,000, and variable costs are $10 per watch. What is the firm's gain or loss at sales of 7,000 watches? Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent.$ What is the firm's gain or loss at sales of 15,000 watches? Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent.$ What is the break-even point (unit sales)? Round your answer to the nearest whole number.units
Company A calculates the cost per unit of its product at $ 28 (with $ 18 variable cost & $ 10 fixed cost). The product sells for $ 42. If then there is a large trader who intends to buy 5000 units but at a price of $ 25 with an additional shipping cost of $ 1, then should Company A accept the order (Assume that the order does not interfere with regular orders)? what is the increase/decrease in net profit of company A? O $125.000 O $140,000 O $95.000 O $30,000
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 000
Trailblazer Company sells a product for $270 per unit. The variable cost is $150 per unit, and fixed costs are $576,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $224,640. a. Break-even point in sales units units b. Break-even point in sales units if the company desires a target profit of $224,640 units
Solomon company has total fixed cost of $15,000, variable cost per unit of $6, and a price of $8. If Solomon wants to earn a target profit of $3,600, how many units must be sold? 2,500 7,500 9,300 18,600 18,750
XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $10 per unit, and fixed costs of $300,000. The company is considering increasing the price of its units to $60 per unit. If the price is changed, how many units will the company need to sell for profit to remain the same as before the price change? Select one: O a. None of the given answers. O b. 7,500 O c. 11,250 O d. 9,000 O e. 12,000
ABC Ltd produces a single product. The selling price is OMR 50 a unit and the variable costs is OMR 30 a unit. The annual fixed costs of the business are OMR 5000. The business aims to make OMR 10000 profit during the forthcoming year. How many units must be sold to achieve this target profit? Select one: O a. None of the options O b. 550 Units O c. 500 Units O d. 750 Units
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Rancor Electronics sells 6,000 mp3 players and earns Tk.3.0 million in revenues. Rancor's variable costs are Tk.500,000 and its fixed operating costs are Tk.1.52 million. a. How many mp3 players does Rancor have to sell to recover all its operational costs? b. Can Rancor earn a larger increase in operating income by making a smaller increase in sales? Explain. c. Suppose Rancor has Tk.1.2 million in debts at a 12 percent rate of interest and is subject 38 percent tax rate. How many mp3 players will Rancor have to sell in order attain its financial breakeven point?

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