Southampton Electronics manufactures arange of portable heaters. Most of theoutpu is exported. Sales 12, 000 units £25per Selling price unit 40% Contributionmargin ratio Margin of safety percentage30% The variable expense per unit is:0 a£7.50 per unit. O b. £17.50 per unit O c10.00 per unit. O d. £15.00 per unit.

Variable cost is expense that changes in proportion of production or sale. The variable cost per…

Answered: Southampton Electronics manufactures a…

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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Awanita Enterprises sells computer flash drives for $2.81 per unit. Unit variable cost is $0.07. The breakeven point in units is 3,000, and expected sales in units are 4,500. What is the margin of safety in dollars? OA. $105 OB. $8,430 OC. $4,215 O D. $4,110 ...
The Xyden Company sells grips for P6 per unit. Variable costs are P2 per unit. Fixed costs are P37,500. How many grips must be sold to realize a profit before income taxes of 15% of sales? a. 9,375 units b. 9,740 units c. 11,029 units d. 12,097 units
Southampton Electronics manufactures a range of portable heaters. Most of the output is exported. Sales Selling price Contribution margin ratio Margin of safety percentage The break-even level in sales pounds is: Select one: О А. £210,000 O B. £120,000 O C. £180,000 O D. £84,000 12,000 units £25 per unit 40% 30%
ABX Inc. manufactures and sells compact disks. Price and cost data are as follows: Selling price per unit OMR 15 Variable cost per unit 7 Annual fixed costs 30,000 Required: 1. What is ABX's break-even point in units? 2. What is the companys break-even point in sales dollars? How many units would ABX have to sell in order to earn OMR 3. 25,000?
The Sweet Factory produces and sels specialty tudge The seling price per kilogram is $20, variable costs are $12 per kilogram, and sotal fred costs are S6.000. How many kilograms of tudge must Sweet Factory sel tamng operuting income of S4000? OA 6000 OB 1000 OC 750 OD. 1250
Tiktok Company distributes a lightweight lawn chair that sell for P150 per unit. Variable costs are P60 per unit, and fixed costs total P1,800,000 annually. Required: 1. What is the product's CM Ratio?2. Use the CM ratio to determine the break-even point in sales pesos.
Smarty Inc. Ltd produces two different products with the following monthly data: P1 P2 Total Selling price per unit $100 $12 Variable cost per unit $ 60 $ 3 Expected unit sales 21,000 14,000 35,000 Sales mix 60 percent 40 percent 100 percent Fixed costs $750,000 Assume the sales mix remains the same at all levels of sales. Required: Calculate the weighted average contribution margin per unit. How many units in total must be sold to break even? How many units of each product must be sold to break even? How many units of each product must be sold to earn a monthly profit of $100,000? Prepare a contribution margin income statement for the month. If the sales mix shifts more toward the P1 product than the P2 product, would the break-even point in units increase or decrease? Explain.
Sanjay Company has monthly fixed costs of $112.000. The variable costs are $5.00 per unit. The sales price per unit is $20.00 and they sold 8,000 units. Sanjay Company's total sales revenue is A. $120,000 B. $8,C00 C. $112,000 D. $160.000
Acme Inc. sells Product Yellow for $23/unit. Variable costs for Product Yellow are $13/unit; fixed costs are $26,000. Acme Inc. desires an income of $10,000 (after taxes) from sales of this product. Its income tax rate is 20%. How many units of Product Yellow must it sell to achieve its target income? Question 9Answer a. 12,500 units b. 2,600 units c. 3,850 units d. 3,600 units
Pepper Inc. produces lacrosse sticks. The selling price per stick is $42. Their variable cost per unit is $28, and the fixed cost per unit is $12 when 8,000 units are produced and sold. Approximately how much in sales dollars must the company have to breakeven? O $6,857 $201,600 O $288,000 $192,667 O $48,000
Company XYZ is a car navigation system manufacturer. The company sells each unit for $400. The variable manufacturing cost per unit is $100 while the variable selling and administrative cost per unit is $50. The fixed manufacturing cost is $4,000 while the fixed selling and administrative cost is $6,000. Calculate the number of units needed to achieve an operating profit of $8,000. (round to the nearest number) O a. 33 O b. 40 O C. 51 Od. None of the given answers O e. 72
ABD Corporation has the following information about its single product: Selling Price per unit ₱20 Variable Cost per unit ₱ 12 Annual Fixed Costs ₱ 40,000 Expected Units to be sold 6,000 units Calculate the margin of safety and determine the level of profit if sales will decrease by (a) 15% and (b) 18%.

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