Solution-Compute how many unit will to be sold to earn

Compute how many unit will to be sold to earn target profit

Assignment Help Cost Accounting

Reference no: EM132628971

The company's contribution income statement for the next year is given below:

Sale (20000 units) = $1200000

Less- Variable cost= ($900000)

Contribution margin = $300000

Less- Fixed expenses = ($240000)

Net operating income = $60000

Instruction:

Problem 1. Calculate the company's sale ratio and variable expense ratio.

Problem 2. Compute the company's break even points in both unit sales and dollar sales.

Problem 3. Assume that sales increase $400000 next year, by how much company's net operating income will increase.

Problem 4. The management wants the company to earn a profit of at least $90000. How many unit will have to be sold to earn this target profit?

Problem 5. Calculate the company's marginal safety both dollar and percentage form.

Problem 6. A) Calculate company's degree of operating leverage at the present level of sales. B) If the company sales increase by 8% next year, by what percentage you would expect net operating income to increase. C) Verify your answer to be increased.

Reference no: EM132628971

Questions Cloud

What is cost of goods sold for enigma corporation : What is Cost of Goods Sold for Enigma Corporation's first year? Total variable period costs incurred 30,000. Total variable costs incurred 50,000

Composers from the Romantic Era : Choose three composers from the Romantic Era. Pretend they all had an opportunity to meet, perhaps at a party.

Find how many units is the company expected to sell : Find How many units is the company expected to sell to make a before tax target profit $400,000. Will the result be different if we consider 30% tax?

Public policy topics-Social Security : Your Final Paper is to be a comprehensive research study-Social Security. The scope and nature of the public policy problem.

Compute how many unit will to be sold to earn target profit : Compute How many unit will have to be sold to earn target profit? The management wants the company to earn a profit of at least $90000.

Would accept the order if are the manager and explain : Consider zagol manufacturing which is engaged in the manufacturing of product ABC. Would you accept the order if you are the manager?

Explain the risks and benefits to using hrt : In your original post, describe a patient who may benefit from HRT. Explain the risks and benefits to using HRT in the scenario you chose. Be sure to include.

Calculate the company sale ratio and variable expense ratio : Calculate the company sale ratio and variable expense ratio. Compute the company break even points in both unit sales and dollar sales

Improve public health systems in your community or state : If you are the chief public health officer in your state, how can you apply the quality aims to improve public health systems in your community or state?

User Account

All Pages

Compute how many unit will to be sold to earn target profit

Reference no: EM132628971

Reference no: EM132628971

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT