FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- 3. Breakeven point analysis Our company's activity is characterised by the following basic information: 15000 pcs 320 $/pc 440 $/pc Quantities produced (Q): Variable cost /unit (vc): Price (P): 20% of the total cost is fixed cost a) Determine the breakeven point of the business! b) What should be the volume of production to ensure a profit of 450 000 $?arrow_forward= $ A project has the following estimated data: price 104.00 per unit; variable costs = $60.50 per unit; fixed costs investment = $39,600.00; life = 6 years. What is the $37,500.00; required return = 8%; initial degree of operating leverage at the financial break - even level of output? a) 4.38 b) 7.38 c) 6.38 d) 3.38 e ) 5.38arrow_forwardA company has invested assets of $3,500,000, total sales of 30,000 units and a desired ROI per unit of 20% . What is the ROI per unit? Group of answer choices $233.33 $70. $23.33 $700,000.arrow_forward
- What would be the total contribution to profit to the company as a whole for 10,000 units transferred to Division B and later sold to outside customers at P21 per unit. A. P20,000 B. P40,000 C. (P20,000) D. P80,000arrow_forwardB. Consider the following: Total variable costs $200,000 Total fixed costs $150,000 Annual volume of units 500 Average invested capital $400,000 Target Return on investment 20.0% To the nearest tenth, what is the markup percentage required to earn the target return on investments using the cost-plus formula based on total costs?arrow_forwardIf sales are $295,000, variable costs are 75% of sales, and operating income is $51,500, the operating leverage is a.4.3 b.1.1 c.1.4 d.0.0arrow_forward
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