**UKJPQX588 Corp. Cost, Price, and Sales Data****Per Unit:**- **Selling price:** $224- **Variable expenses:** $46- **Contribution margin:** $178---- **Current Sales:** UKJPQX588 is selling 6,400 units per month.- **Fixed Expenses:** $896,000 per month.---**Proposed Changes:**- The sales manager plans to reduce the selling price by $20.- Increase advertising spending by $36,000 per month.- It is believed these changes will increase monthly sales quantity by 20%.**Question:**What would be the overall effect on UKJPQX588’s monthly net operating income due to this change?(Note: A POSITIVE number indicates an INCREASE in net operating income, and a NEGATIVE number indicates a DECREASE in net operating income.)---**Multiple Choice Options:**- $44,768 dollars- -$6,920 dollars- -$10,752 dollars

Net operating income is revenue less all operating expenses while net income is revenue less all…

Answered: UKJPQX588 Corp. has provided the…

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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Dellcom Inc. sells two products: a regular and a deluxe version. The owner would like to better understand the impact of the sales mix on the company's sales. The following information is available: Regular Deluxe Sales price per unit Variable cost per unit $38 $61 $15 $34 The company has total fixed costs of $384,615 for the year and they sell 9 Regular products for every 4 Deluxe product. The owner would like to know, given the sales mix, how many units of each product the company must sell per year to break even. The company must sell units of the Regular product. Enter the number of units given the current sales mix. The company must sell units of the Deluxe product. Enter the number of units given the current sales mix.
Data related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years, are as follows: Products Unit Selling Price Laptops $230 Tablets 420 The estimated fixed costs for the current year are $402,500. Unit Variable Cost $160 200 Why is it so different? The break-even point is heavily toward the product with the Sales Mix Required: 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year. units units 30% 2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year. Laptops: Tablets: units 70% 3. Assume that the sales mix was 70% laptops and 30% tablets. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. units in this scenario than in part (1) because the sales mix is weighted contribution margin per unit…
ABC manufactures and sells calculators. It has developed two new models, 'Pro' and 'Stu'. The annual fixed cost is $18,000. From a pre-launch market survey, it expects that sixty percent of the potential customers prefer 'Stu' while forty percent prefer "Pro". The following information has been extracted: Pro Stu Selling Price per calculator $15 $20 Variable Cost per calculator $5 $8 Required: (a) Calculate the break-even point in units and in sales dollars (in total and per product) for ABC. Assume a constant sales mix. (b) How many calculators of each model need to be sold to earn a target net profit of $40,000? Assume a constant sales mix. (c) Identify any two factors that must be assumed to enable CVP analysis to be conducted.!
Witrox Bhd sells two models of smartphone, the Oppo and the Xiaomi. Oppo RM 60.0 35.0 25.0 Sales price per unit Variable cost per unit Contribution margin per unit Witrox has determined that it would break even at an annual sales volume of 50,000 units, of which 75% would be Oppo. Required: a) What are the contribution margin ratios for each product and the company? b) What is the amount of Witrox's estimated annual fixed costs? Xiaomi RM 85.0 54.0 31.0 c) What is the sales mix? d) Prepare a product line income statement with operating income of RM500,000. Fixed production costs will increase RM45,000 and fixed administrative costs will increase RM22,500 to support the increase in volume.
D) Nuevo Company manufactures a product which sells for P5. At present, the company produces and sells 50,000 units per year. Unit variable manufacturing and marketing expenses are P2.50 and P.50 respectively. Fixed expenses are P70,000 for tactonY overhead and P30,000 for marketing and administration. The sales manager hos proposed that the price be increased to P6. To maintain the present sales volume. advertising must be increased. The company's profit objective is 10% of sales. 2. Compute the additional expenditure the company can afford for advertising. E) The annuUal FC amounted to P798,000. At present, the contribution margin ratio is 42%. 3. Determine the amount of sales if the desired profit is P173,800 net of the ff. fax rates: For the first P100,000 25% In excess of P100,000 35% F) Bosh Company expects to incur the following costs to produce and sell 70,000 units of its product: Variable manufacturing cost Fixed manufacturing cost Variable marketing expense Fixed marketing…
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Sunland Company sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus). Q-Drive has variable costs per unit of $60 and a selling price of $120. Q-Drive Plus has variable costs per unit of $75 and a selling price of $165. Sunland’s fixed costs are $1053000. How many units of Q-Drive would be sold at the break-even point? A. 5265. B. 13000. C. 3900. D. 9100.
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. Assume the company sold 28,000 units last year. The sales manager is convinced that a 10% reduction in selling price, combined with a P700,000 increase in advertising expenditures, would cause annual sales in units to increase by 50%. REQUIRED: 1. Prepare two contribution margin income statements, one showing the results of last year's operations and one showing what the results of operations would be if these changes were made. 2. Would you recommend that the company do as the sales manager suggests? Why?
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company X produce and sell 80000 calculators yearly. the capacity for company to produce 100000 calculators . the next data available the variable cost per calculator: manufacturing cost 22 selling and administrative 10 the fixed cost: manufacturing cost 256000 selling and administrative 112000 if the company accepted to special order to sell 10000 calculator at selling price 50 per calculator. whats the effect of the company income?
The background information is provided in the image attached. Solve the following: g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit and thebreak-even point:(i) Sales volume increases(ii) Total fixed cost decreases(iii) Selling price per unit increases(iv) Variable cost per unit increases
Benson Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 percent markup on total cost. Based on annual production costs for 10,000 units of product, computations for the sales price per clock follow. Unit-level costs $150,000 50,000 200,000 50,000 $250,000 Fixed costs Total cost (a) Markup (a x 0.25) Total sales (b) Sales price per unit (b ÷ 10,000) 25 Required a. Benson has excess capacity and receives a special order for 7,000 clocks for $21 each. Calculate the contribution margin per unit. Based on this, should Benson accept the special order? b. Prepare a contribution margin income statement for the special order. Complete this question by entering your answers in the tabs below. Required A Required B Benson has excess capacity and receives a special order for 7,000 clocks for $21 each. Calculate the contribution margin per unit. Based on this, should Benson accept the special order? Contribution margin per unit Should Benson accept the…

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