n 2016, Carow sold 3,000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $500,000. The same selling price is expected for 2017. Carow is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is Carow’s break-even point in units for 2017?
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- In 2020, National Co. sold 1,000 units at P500 each, and earned net income of P40,000. Variable expenses were P300 per unit, and fixed expenses were P160,000. The same selling price is expected for 2021. National Co.’s variable cost per unit will rise by 10% in 2021 due to increasing material costs, so they are tentatively planning to cut fixed costs by P20,000 and to increase the selling price by P150. How many units must National Co. sell in 2021 to maintain the same income level as 2020? (round to whole number)In 2020, National Co. sold 3,000 units at P500 each. Variable expenses were P250 per unit, and fixed expenses were P150,000. The same selling price is expected for 2021. National Co is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is National Co.’s break-even point in units for 2021?The BEP Company plans to market a new product. Based on its market studies, it estimates that it can sell 70,000 units in 2016. The selling price per unit is P20.00. The variable cost ratio is 40% sales. The fixed cost is P60,000.00 1) Compute the Break-even point in: a) units b) in sales pesos 2) Assume desired profit is P140,000, compute for the volume of production 3) Compute for the break-even price
- In 2019, Vaughn sold 3000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $490000. The same selling price is expected for 2020. Vaughn is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is Vaughn’s break-even point in units for 2020? 2450. 2352. 2940. 1960.In 2018, the company's sales was P 500,000. Its fixed costs amounted to P 100,000 per year. In 2019, sales was 20% higher, while profit was P 30,000 higher than the 2018 profit. For 2020, the company expects to have sales that is twice as much as the 2018 sales. The expected increase in production to meet the sales demand in 2020 will not require the company to exceed its normal capacity. a. What is the company's contribution margin ratio? b. How much profit does the company expect to eam in 2020?ROS Corporation sold 9,000 flashlight umbrellas in 2020. Their expected units to be sold this year is 10,000 units. What is the percentage change in sales volume? The variable expenses of wearable air purifiers last year amounted to Php500,000. The entrepreneur projects a 2.25% increase in sales volume. What is the projected variable expense?
- Covid2020 Furniture is operating at almost 100% capacity. The company expects sales to increaseby 20% in 2020. To satisfy the demand for its products, the company is considering twoalternatives: The first alternative would increase fixed costs by 15% but not affect variable costs. The second alternative would not affect fixed costs but increase variable costs to 60% ofthe selling price of the company’s product.Covid2020 Furniture’s income statement for 2019 is as follows:Sales RM1,800,000Costs:Variable RM810,000Fixed RM165,000 RM975,000Income before taxes RM825,000REQUIRED:(a) Determine the break-even point in sales dollars for 2020 under the first alternative.(b) Determine the break-even point in sales dollars for 2020 under the second alternative.(c) Determine projected income before taxes for 2020 under each of the alternatives.(d) Which alternative would you recommend? Why?The factory producing ornaments has a production capacity of 1 million units/year. 750 thousand units/year production is planned for 2017. Since the sales value of a trinket is 0.7 $; Fixed expenses = 2300 $; Variable expenses = 0.2 $ / unit. How many productions need to be made to make a profit of 35000 $?Harrison Co. expects to sell 200,000 units of its product next year, which would generate total sales of $17 million. Management predicts that pretax net income for next year will be $1,250,000 and that the contribution margin per unit will be $25. Use this information to compute next year’s total expected (a) variable costs and (b) fixed costs.
- The manufacturer of commercial jets has a cost index equal to 94.9 per aircraft in 2013. The anticipated cost index for the airplane in 2018 is 106.8. The average compound rate of growth should hold steady for the next 15 years. If an aircraft costs $10.2 million to build in 2014, what is its expected cost in 2016? State your assumptions.Rampart's had net income in 2020 of $120,000. Rampart's variable costs were 20% of its total revenue. Total fixed costs were $200,000 in 2020. What is the company's breakeven point in units if its product sells for $4 per unit?Rose Trading had RM210,000 of net profit in year 2021 when the selling price per unit was RM150, the variable costs per unit were RM90, and the fixed costs were RM570,000. Management expects per unit data and total fixed costs to remain the same in year 2022. The manager of Rose Trading is under pressure from investors to increase net profit by RM52,000 in year 2022.Required:(i) Compute the number of units sold in year 2021.(ii) Compute the number of units that would have to be sold in year 2022 to reach the shareholders’ desired profit level.