Southampton Electronics manufactures a range of portable heaters. Most of the output is exported.SalesSelling priceContribution margin ratioMargin of safety percentageThe break-even level in sales pounds is:Select one:О А. £210,000O B. £120,000O C. £180,000O D. £84,00012,000 units£25 per unit40%30%

The total units sold are 12,000 The selling price is 25 per unit The contribution margin ratio is…

Answered: Southampton Electronics manufactures a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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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 variable expense per unit is: Select one: O A. £10.00 per unit O B. £17.50 per unit O C. £7.50 per unit O D. £15.00 per unit 12,000 units £25 per unit 40% 30%
Sundial, Inc., produces two models of sunglasses-AU and NZ. the sunglasses have the following characteristics. Au NZ Selling price per unit $ 160 $ 160 Variable cost per unit $ 80 $ 60 Expected units sold per year 70,000 30,000 The total fixed costs per year for the company are $3,612,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute the break-even point. c. If the product sales mix were to change to four pairs of UA sunglasses for each pair of NZ sunglasses, what would be the new break-even volume for Sundial, Inc? Complete the question by entering your answers in the tabs below. Required A What is the…
Southampton Electronics manufactures a range of portable heaters. Most of the outpu is exported. Sales 12, 000 units £25 per Selling price unit 40% Contribution margin ratio Margin of safety percentage 30% The variable expense per unit is:0 a £7.50 per unit. O b. £17.50 per unit O c 10.00 per unit. O d. £15.00 per unit.
Maruska Corporation has provided the following data concerning its only product Selling price Current sales $ 180 per unit 29,800 units 25,032 units Break-even sales What is the margin of safety in dollars? Multiple Choice О $5,364,000 $4,505,760 $3,576,000 О $858,240
A company sells two products in the ratio 2:1 A B £ £ Selling price 2030 Variable costs 10 15 Given that fixed costs are £500,000, how many products in total will have to be sold to break even? Select one: O a. 50,000 O b. 35,000 O c. 42,500 O d. 45,000 Questio Not yet Marked Flag
Company XYZ is producing and selling 2,500. At this level, the selling price per unit is $10, the variable expenses per unit is $6, and fixed expenses are $1,500. How much is the profit? а. $6,000 b. $8,500 С. $11,000 d. $16,000 е. $13,500
Tough Tough makes two products, Rock and Hard and details are as follows: Rock Hard £ £ Selling price 20 25 Unit variable costs 11 13 Standard ratio of sales 60% 40% . Fixed costs are estimated at £1.02 million for the year and Tough is currently forecasting to generate total sales revenue of £4.4 million. Required: Calculate the break-even point in terms of total units and sales revenue, based on the forecast ratio of sales above. Sketch a profit-volume chart showing the situation in (a); show on the same chart the effect of changing the sales mix to 50% Rock and 50% Hard (keeping total forecast revenue the same). The company has realised that £325,000 of the fixed costs are only incurred by product Rock. Calculate the sales revenue required from Rock in order to cover the attributable fixed costs and provide a net contribution of £800,000 towards general fixed costs and profit.
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.
Q1- You have the following data for the four products (A,B,C,D): PRODUCT VARIABLE FIXED TOTAL CONTRIBUTION SALES IN NET COST E COST COST PROFIT MARGIN RATIO 30% DOLLAR 1500 300 M 700 K 1000 P. 1200 500 L. 800 1200 R. T. 300 N 200 S. 2000 D Required: Find the unknown values?.
Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $9 while the variable cost ratio is 20%. Assuming total fixed costs of $30,000, what is the margin of safety in ($) value? О а. 142,500 O b. None of the given answers O c. 82,500 O d. 102,500 O e. 122,500 to search O A n W 11:34 A D A dx ENG 22-05-2021 brt sc snd delete home 24 96 5 + backspace num lock R T Y 7 V 8A home D F H K 5 0 enter pause B + shift 11 2 S end alt ctrl
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%.
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?

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