FINANCIAL+MANAG.ACCT.
9th Edition
ISBN: 9781260728774
Author: Wild
Publisher: RENT MCG
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Students have asked these similar questions
If, Total Fixed cost OMR 40000, Selling price per unit OMR 20, and Variable cost per unit OMR 12. What will be the amount of profit if actual sales are OMR 120000?
CVP Analysis using a chart:
The cost-volume-profit chart for Byron Manufacturing is shown. Use the graph to complete the sentences given below.
SALES AND COSTS (Dollars)
20000
Sales
15000
Total Costs
10000
5000
100 200 300 400 500 600 700 800 900 1000
UNITS OF SALES
Byron Manufacturing reaches its break-even level of activity when it sells 500
-v units and generates $12,000
v in revenue, because at this level of activity the firm's revenue equals
-v its total cost. In addition, you can
determine from the chart that Byron Manufacturing's fixed costs are $6,000
-v and its price per unit is $24.00
V and variable cost per unit is $12.00
If fixed costs increase, what will happen to the break-even point?
The break-even point will increase.
If the price per unit decreases, what will happen to the break-even point?
The break-even point will increase.
If the variable cost is P15/unit, fixed cost is 265,000; and Sales is P55. Find the BEPs, and BEPx. Use the Target Profit Analysis Equation Method.
Compute for the following:
• Contribution Margin Ratio
• Break-Even Point in Sales
• Break-Even Point in Units
IMPORTANT NOTE:
PLEASE REFER TO THE GIVEN LESSON. USE THE FORMULA FROM THE LESSON IN THE PHOTE ATTACHED. THANK YOU. I will give you upvote for this.
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