What should be the unit selling price of its product to have a 20% return oninvestment?Baguio Corporation has these selected data:25,000P500,000Units to be soldTotal Cost of the unitsFixed Capital investmentVariable capital on sales1,000,00020%

Selling price of a product is the price at which company sells its products or service. Company…

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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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15. The manager of the Cement Division expects the following results in 2022: Sales Variable Costs (60%) Contribution Margin P 49.600,00O 29, 760,000 19,840.000 Fixed Costs Profit P 7.840,000 The Division's investments are as follows: Plant equipment Working Capital ROI P 19,510.000 P 14.880.00O 22.8% The division has a target ROI of 30 percent, and the rmanager has asked you to determine how much sales volume the division would need in order to realize that. He states that the sales mix is relatively constant so variable costs should be close to 60 percent of sales, fixed costs and plant and equipment should remain constant, and working capital should vary closely with sales in the percentage reflected above. 15. The peso sales that the division needs in order to realize the 30 percen ROI target is: O a. P 19,829,032 O b. P 57,590,322 O c. P 44,373,871 O d. P 59,510,000
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 $?
What is residual income on these facts? Return on investment (ROI) 20% Sales $400,000 Margin 4% Minimum required rate of return. 16% O $ 6,000 O $ 16,000 O $ 3,200 $12,800 O $10,000
= $ 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 ) 5.38
A 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.
1.
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. P80,000
B. 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?
If 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.0.0
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Dishman Ltd plans to sell 200,000 items a year for £15 each. Fixed costs are £360,000 a year and variable costs are £12 per unit. What is the margin of safety? Select one: a. 66.7% b. 25.0% c. 11.1% d. 40.0%

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What should be the unit selling price of its product to have a 20% return on investment? Baguio Corporation has these selected data: Units to be sold 25,000 Total Cost of the units P500,000 Fixed Capital investment Variable capital on sales 1,000,000 20%