The data below relate to a small service business. The business delivers a standard service to all customers. (Enter your answer as an integer number.) Fixed costs Variable cost per service £100,000 146 271 Selling price per service How many services need to be provided to make a profit of £166,000 for the business? Enter your answer below. The number of services to make the required profit is
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- Consider the following information for a given business. Sale revenue =GHS40,000 VC per unit =GHS20 Activity level =1,000 to break even Required: 1. Determine the TFC 2. Express the contribution as a percentage of sale. 3. The company plans to sale 1,500 unit in the next period. What will be the percentage margin of safety (MoS) 4. What margin should the business employ for planning purposes? 5. What total profit should the business expect in order to achieve it's planned sales?A small company manufactures a certain item and sells it online. The company has a business model where the cost, C in dollars, to make x items is given by the equation C = 20/3 x + 50. The revenue R , in dollars , made by selling x items is given by the equation R = 10x. How many items must the company sell in order for the cost to equal their revenue?! Required information [The following information applies to the questions displayed below.] Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station's business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub's business strategy is to sell the lowest cost sub on the planet. Net sales Net income Total assets, beginning Total assets, ending Choose Numerator 2. Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).) Choose Numerator Choose Numerator ÷ = 16 ÷ + .. ÷ + Sub Station $109,049 26,722 75,983 117,971 4 Planet Sub $62,871 4,292 39,999 46,133 Return on Assets Choose Denominator Profit Margin Choose Denominator Asset Turnover Choose Denominator | 11 || Return on Assets Return on assets Profit Margin Profit Margin Asset Turnover Asset Turnover 0 times e 0
- A fast-food restaurant has a cost of production C(x)=14x+133 and a revenue function R(x)=7x. When does the company start to turn a profit? Enter the exact answer. If there is no solution, enter NS. If there is an infinite number of solutions, enter IS.there are still these to answer Draw up a marginal cost statement on the basis that 12,000 units will be sold and calculate the net profit or loss c. Briefly explain what is meant by breakeven points d. Calculate the breakeven units in value and explain what it means to the director e. Calculate the sales activity to reach a target profit of £20,000.Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane Sales price $4,800 $3,200 Variable cost of goods sold (3,020) (2,140) Manufacturing margin $1,780 $1,060 Variable selling expenses (916) (516) Contribution margin $864 $544 Fixed expenses (410) (220) Operating income $454 $324 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,800 2,000
- Howard Cooper, the president of Vernon Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 3. Standard rate and variable costs Service rate per hour Labor cost Overhead cost Selling, general, and administrative cost Expected fixed costs Facility maintenance Selling, general, and administrative Required A Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 42,000 hours of services in Year 3. b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Vernon charges customers $83 per hour, the firm can achieve 52,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same consultant also suggests that if…The success of a business depends on many things. For example, you are the senior manager of the ABC Hypermarket, Explain Mr. Said, the new manager how to understand the customers and the competition. In addition also explain control costs and how to price their products and services. Explain Mr. Said about Markup & Margin with the following situations. Required: (a) Situation 1: Calculating OMR amount of markup and percent markup on cost. Signature" jeans cost, OMR 1800. Signature" jeans selling price OMR 2300. (b) Situation 2: Calculating selling price based on following information. Lamp cost, OMR200. 40% markup on selling price (c) Situation 3: Calculating cost based on following information Tennis racket selling price OMR 800 40% markup on costDownload and fill out the Section 5 Comprehensive Problem Template attached below to complete the problems (ignore question 5-2 as this applies to the "combined accounting and finance" course). Problem 5-1 Redlands Inc. sells one product for $5. The variable cost per item is $3, and the fixed costs for the firm are $40. Required: a. Compute the breakeven point in units. b. Compute the number of units and sales revenue needed to achieve a $20 profit. (Ignore income taxes.) c. Assume that the income tax rate for Redlands is 40%. Compute the number of units and sales revenue needed to achieve an $18 net profit. d. Compute the number of units and sales revenue needed to achieve an 8% profit margin. (Ignore income taxes.) e. Compute the number of units and sales revenue needed to achieve a 12% net profit margin. (Assume a 40% income tax rate.) f. Assume that Redlands currently sells 40 units. Redlands estimates that if it increased sales price to $6 per unit demand would decrease by…
- APPLY THE CONCEPTS: Target income (sales revenue) Another useful method for figuring out the type of performance your company will need to reach a target income is by using sales revenue. Rather than using the number of units, this method uses total sales revenue. In companies for which the total set of goods produced and sold is more varied, this would be the preferred method, as opposed to a business in which only one product is sold. Assume a company has pricing and cost information as follows: Price and Cost Information Amount Selling Price per Unit $30 Variable Cost per Unit $15 Total Fixed Cost $15,000 For the upcoming period, the company wishes to generate operating income of $40,000. Given the cost and pricing structure for the company's product, how much sales revenue must it generate to attain its target income? Step 1: Calculate the contribution margin ratio: The contribution margin ratio is the contribution margin in proportion to the selling price on a per-unit basis.…A company has three types of products: gadgets, widgets, and gizmos. The cost and market price of each type is listed below. Complete the table by applying the lower of cost and net realizable value (LCNRV). Do not enter dollar signs or commas in the input boxes. Description Category Cost NRV Individual LCNRV Applied to Category Total Gadget Type 1 Gadgets $1,170 $1,000 $ Gadget Type 2 Gadgets $5,700 $5,600 $ Total Gadgets Widget A Widgets $140 $150 $ Widget B Widgets $130 $190 $ Total Widgets $ tA Gizmo 1 Gizmos $2,280 $2,450 $ Gizmo 2 Gizmos $2,280 $1,630 $ Total Gizmos Total $ A $ EA SA SA EA AAssume that the linear cost and revenue models apply. An item costs $12 to make. If fixed costs are $3000 and profits are $5000 when 100 items are made and sold, find the revenue equation. (Let x be the number of items.)R(x) =