Trumps Inc. has developed a chew-proof dog bed-the Tuff Pup. Fixed costs are P 204,000 per year. The average price for the Tuff-Pup is P 36, and the average variable cost is P 22 per unit. Currently, Trumps produces and sells 20,000 Tuff-Pups annually. Required: How many Tuff-Pups must be sold to break-even? If Trumps wants to earn P95,000 in profit, how many Tuff-Pups must be sold? Prepare a variable-costing income statement to verify your answer. Suppose that Trumps would like to lower the break-even units to 12,000. The company does not believe that the price or fixed cost can be changed. Calculate the new unit variable cost that would result in break-even units of 12,000 units. (Round to the nearest cent). What is Trumps current contribution margin and operating income? Calculate the degree of operating leverage (round your answer to four decimal places.) If sales increased by 10% next year, what would the present change in operating income be?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Trumps Inc. has developed a chew-proof dog bed-the Tuff Pup. Fixed costs are P 204,000 per year. The average price for the Tuff-Pup is P 36, and the
Required:
- How many Tuff-Pups must be sold to break-even?
- If Trumps wants to earn P95,000 in profit, how many Tuff-Pups must be sold? Prepare a variable-costing income statement to verify your answer.
- Suppose that Trumps would like to lower the break-even units to 12,000. The company does not believe that the price or fixed cost can be changed. Calculate the new unit variable cost that would result in break-even units of 12,000 units. (Round to the nearest cent).
- What is Trumps current contribution margin and operating income? Calculate the degree of operating leverage (round your answer to four decimal places.) If sales increased by 10% next year, what would the present change in operating income be?
Step by step
Solved in 2 steps with 1 images
