Based on the facts of Easy Problems Corp. The margin of safety ratio (MSR) and the break-even sales ratio (BESR) are?
Q: Which of the following is not one of the benefits of breakeven analysis to businesses? A.…
A: A break-even analysis is a financial tool
Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a.…
A:
Q: The most important use of the CVP graph is to show a. The CM ratio at various levels of sales…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: With regard to the CVP graph, which of the following statements is NOT correct? a. The CVP graph…
A: Cost volume profit (CVP) graph : A cvp graph shows the break even point as the intersection of the…
Q: What are the drivers to the cost of revenue and the trends? b. Are there any trends in sales and…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Which of the following statements is true regarding a company's segment margin? It is primarily used…
A: Solution: The true statement regarding a company's segment margin is that "It is primarily used to…
Q: Calculate: a) The break-even level of production and sales b) The margin of safety
A: Given in the question: Per Desk Amount Direct Materials €3.00 Direct Labour…
Q: When the return on sales (also known as net profit margin) is negative, what does this mean? Group…
A: Net profit margin (NPM) or return on sales measures the profitability of the company. Higher the…
Q: a. How can the mathematical equation for break-even sales show both sales units and sales dollars?
A: The analysis for cost, volume and profit in an organization is called Cost-Volume-Profit analysis.…
Q: On a CVP graph for a profitable company, the total revenue (sales) line will be steeper than the…
A: Cost volume profit analysis: It can be defined as the technique of accounting that is used by the…
Q: Which of the following is not an underlying assumption of a conventional CVP analysis? Multiple…
A: Cost-volume-profit analysis is the most important tool that is used by managers to specify the cost…
Q: Profit volume ratio is used for the calculation of: Select one: O a. Profit at given sales O b.…
A: The profit volume ratio is also known as contribution margin ratio.
Q: When performing sales mix analysis, which one of the following is true: O a. The sales mix is…
A: The sales mix is a formula that specifies how much of each product a company sells in relation to…
Q: Which of the following statements represents Margin of Safety (units)? O a. Expected sales (units)…
A: Solution: The margin of safety represent sales level that generates profits. Therefore margin of…
Q: Which of the following refers to the relative combination of products being sold by a firm? Group of…
A: Relative combination of products being sold by a firm is also known as Sales Mix As sales mix is a…
Q: Sales pricing decisions do not usually consider A - total product absorption costs B - costs of…
A: Sales pricing decisions are related to the costs and price related to the entity.
Q: Briefly explain the impact of each of the following scenarios on the break-even point and the margin…
A:
Q: a) What is Siam Square's return on sales ratio and when compared to its competitors how is Siam…
A: Return on sales is the measure of profits earned by the company. It is also called operating profit…
Q: (a) Calculate and determine the break-even points (in sales dollars and units) for each product…
A: In Marginal Costing we calculate contributionmargin by deducting…
Q: ) Briefly explain the impact of each of the following scenarios on the break-even point and the…
A: Break even point is the point of sales where business earns no profit no loss.
Q: Break-even analysis is concerned with determining a point at which the company can minimize total…
A: Break-even point is the point reached by the company where the revenues and costs of the firm are in…
Q: Help question 28
A: Operating leverage: It is a financial ratio that measures a company’s operating income to its sales…
Q: g) Briefly explain the impact of each of the following scenarios on the break-even point and the…
A: Margin of Safety(Amount) : Total Revenue-Breakeven point Margin of Safety(Units) : Current Sales…
Q: Which of the following statements is true? OA. When a large proportion of income is spent on a…
A: To find: which of the following statement is true
Q: How would an increase in sales volume affect the break-even point and the margin of safety
A: Break-Even point :- The break-even point is that the point wherever a company’s revenues equals its…
Q: Which of the following is true regarding the contribution margin ratio of a company that produces…
A: Contribution margin ratio =Contribution per unitSales price per unit Contribution per unit = Sales…
Q: Analyse the diagram and following inter related concepts of break-even analysis. A. Break-even point…
A: Break Even Analysis: It is the point where total cost is equal to revenue and It determine the…
Q: APPLY THE CONCEPTS: Target income (sales revenue) Another useful method for figuring out the type…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: g) Briefly explain the impact of each of the following scenarios on the break-even point and the…
A: Margin of safety: The excess of actual sales over the break-even sales is known as margin of safety.…
Q: the following best explains the difference between the two points on the graph? * Q O The area of…
A: The cost volume profit analysis is performed to represent the effect of different cost on Income and…
Q: On the cost-volume-profit graph, which of the following would result into a decrease in the…
A: CVP analysis: This analysis helps to evaluate how the changes made in cost and volume do affect the…
Q: In a profit diagram, the safety margin can either be expressed in kronor or some form of volume.…
A: Margin of safety is a financial metric which represents the number of units beyond the break-even…
Q: APPLY THE CONCEPTS: Margin of Safety Margin of safety can allow you to see how much padding there is…
A: Break Even Point( In units) = Fixed Cost / Contribution per unit Margin of Safety( In Units) =…
Q: When performing sales mix analysis, which one of the :following is true .a .The sales mix is usually…
A: Break even point = Fixed costs / Weighted average contribution margin
Q: The “plus” in cost-plus pricing is often referred to as Markup. Extra profit. Gross profit.…
A: Cost plus pricing means when selling price is fixed as a addition of profit on the cost price. For…
Q: Define the term break-even point. What is the variable cost ratio? The contribution margin ratio?…
A: 1. Break-even point: It is a point where the total costs and the total sales of a company are said…
Q: Determine which one of the following statements is correct: O a. Achange in the sales mix will…
A: The breakeven point is the point where a company does not have any profit and loss from their sales,…
Q: Profit Margin for ROA versus ROCE. Describe the difference between the profit margin for ROA and the…
A: Ratios are used for analyzing the financial figures.
Q: Once a company exceeds its breakeven level, operating income can be calculated by multiplying: a.…
A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…
Q: Bulldogs Inc. wants to determine the impact of the change in selling price of its sole product in…
A: Sales price variance is the difference between the actual and standard/Budgeted selling price of…
Q: If a company decreases its selling price for its products. The Increase? Total cost Cost plus…
A: Breakeven quantity increases with the following changes: Increase in amount of fixed costs,…
Q: Help question 30
A: The contribution margin ratio shows the percentage of each dollar sales that is available for…
Q: Profit margins and turnover ratios vary from one industry to another. What differences would you…
A: Financial ratio analysis is one of the tools of financial analysis of a firm. It represents the…
Q: Net income will be: O Greater if more higher-contribution margin units are sold than…
A: In a product mix, the product having higher contribution margin should be sold more as contribution…
Q: Variable costing has an advantage over absorption costing for which of the following purposes? all…
A: Under variable costing, the product cost consists of the variable cost incurred and total fixed cost…
Q: Which of the following is not an assumption underlying cost-volume-profit analysis?
A: Cost Volume Profit analysis- This analysis helps in understanding the cost and profit based on the…
Q: Match each of the following descriptions with the appropriate term. Clear All Plots only the…
A: Given, Match each of the following descriptions with the appropriate term.
Q: Explain how a shift in the sales mix could result in both a higher break-even point and a lower…
A: Sales mix involves the composition of different products and some products have a higher margin of…
Q: Which of the following would not affect the breakeven point? O a. A change in variable cost per unit…
A: Break even point can be referred to as a sales level at which the firm is just able to recover all…
Based on the facts of Easy Problems Corp. The margin of safety ratio (MSR) and the break-even sales ratio (BESR) are?
Step by step
Solved in 2 steps
- Easy Problems Corp. produces and sells a single product. The selling price is Php 25.00 and the variable costs is Php 15.00 per unit. The corporation's fixed costs is Php 100,000.00 per month. Average monthly sales is 11,000 units. 1-19. Easy Problems Corp. produces and sells a single product. The selling price is Php 25.00 and the variable costs is Php 15.00 per unit. The corporation's fixed costs is Php 100,000.00 per month. Average monthly sales is 11,000 units. The corporation's contribution margin per unit and as a percent of sales ? *Company ABC produces a single product with a selling price per unit of ₱140 and variable expense of ₱92. The company’s after tax net income is ₱105,000. Tax rate is 25%. The company sold 10,000 units for the year. The firm wanted to determine its breakeven point, the breakeven point in units would be? a. ₱ 1,400,000 b. ₱ 2,391,716.49 c. ₱ 1,093,750 d. ₱ 2,683,333.34 e. ₱ 991,666.67 f. ₱ 4,083,418.41
- A product sells for ₱80 per unit and has a contribution margin of ₱35 per unit. Monthly fixed expenses total ₱50,000. The firm obtained a loan amounting to ₱50,000 with an interest rate of 12% per annum. The firm desires a profit after tax of ₱75,000 for the month. Tax rate is 25%. How many units must be sold for the month? a. 3,572 b. 4,300 c. 4,458 d. 5,000 e. 2,189Durian Company produces and sells a single product. The product sells forPhp120 per unit and has a contribution margin ratio of 30%. Thecompany's monthly fixed expenses are Php57,600. Determine the variableexpense per unit a. Php84.00b. Php24.00c. Php36.00d. Php28.80The Colits Corp. sells products for P200 each. Variable costs are P150 per unit. Fixed Costs are P800,000. How much sales (in pesos) must be reached to realize a net income of 15% of sales?
- Basic Corp. produces and selis a single product. The seling price is P25 and the variable costs is P15 per unit. The corooration's fixed costs is P100.000 per month. Averaae monthlv sales is 11.000 units. 5. If the corporation pays corporate income tax at a rate of 30% and it wants to earn after tax profit of P21,000, it must generate sales of (answer in units) 6. How much sales (in pesos) must be generated to earn profit that is 8% of such sales. 7. How many units must be sold to eam profit of P2.00 per unit? 8. With an average monthly sale of 11,000 units, the corporation's margin of safety (in units) is? 9. At the present average monthly sales level of 11,000 units, the corporation's degree of operating per y PC esA company produces a single product with a selling price per unit of ₱140 and variable expense of ₱92. The company’s after tax net income is ₱105,000. Tax rate is 25%. The company sold 10,000 units for the year. The firm wanted to determine its breakeven point, the breakeven point in units would be? a. ₱ 1,400,000 b. ₱ 2,391,716.49 c. ₱ 1,093,750 d. ₱ 2,683,333.34 e. ₱ 991,666.67 f. ₱ 4,083,418.41I PDB Manufacturing Corp. produces and sells a single product. The selling price is P25 and the variable costs is P15 per unit. The corporation's fixed costs is P100,000 per month. Average monthly sales is 11.000 units. 1. The corporation's contribution margin per unit and as a percent of sales (CMR) is? 2. The corporation's break-even point is? 3. If the corporation desires to eam profit of P20,000 before tax, it must generate sales of? 4. If the corporation pays corporate income tax at the rate of 25%, and it desires to eam after-tax profit of P21,000, it must generate sales of? 5. With an average monthly sale of 11,000 units, the corporation's margin of safety is? 6. The margin of safety ratio and the break-even sales ratio are? 7. If fixed costs will increase by P20,000, the break even point in units will increase(decrease) by? 8. If variable costs per unit will go up by P5, the peso break-even sales will increase (decrease) to? 9. If selling price will increase to P30, the…
- KLM Company produces a single product. The selling price is OMR 40 a unit and the variable costs is OMR 25 a unit. The annual fixed costs of the business are OMR 4000. The business aims to make OMR 16625 profit during the forthcoming year. How much sales (OMR) required to achieve this target profit? Select one: a. OMR 60000 b. OMR 44000 c. OMR 48700 d. OMR 55000A company manufactures a single product with a selling price of ₱180. Fixed expenses total ₱750,000 and the company must sell 15,000 units to breakeven. Tax rate is 25%. If the target profit after tax is ₱350,000, how many units must be sold? a. ₱ 16,223 b. ₱ 15,000 c. ₱ 5,000 d. ₱ 43,000 e. ₱ 26,000 f. ₱ 22,000Lin Corporation has a single product whose selling price is $120 per unit and whose variable expense is $80 per unit. The company’s monthly fixed expense is $50,000.Required:1. Calculate the unit sales needed to attain a target profit of $10,000.2. Calculate the dollar sales needed to attain a target profit of $15,000.