Profit-Volume ChartFor the coming year, Loudermilk Inc. anticipates fixedcosts of $600,000, a unit variable cost of $75, and a unitselling price of $125. The maximum sales within therelevant range are $2,500,000.a. Determine the maximum possible operating loss.b. Compute the maximum possible operating profit.c. Construct a profit-volume chart on paper. Indicatewhether each of the following levels of sales is in theoperating profit area, operating loss area, or at thebreak-even point.4,800 units8,000 units12,000 units16,000 units20,000 unitsd. Estimate the break-even sales (units) by using theprofit-volume chart constructed in part (c).units

Answer a. Maximum Operating Loss will occur when sale is $0. If Sale is $0, then Variable Cost will…

Answered: Profit-Volume Chart For the coming…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 17E

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For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of $75, and a unit selling price of $125. The maximum sales within the relevant range are $2,500,000. a. Construct a cost-volume-profit chart on a sheet of paper. Indicate whether each of the following levels of sales (units or dollars) is in the operating profit area, operating loss area, or at the break-even point. 4,800 units Operating Loss Area 12,000 units Operating Profit Area $1,500,000 Operating Profit Area 20,000 units Operating Profit Area $2,500,000 Operating Profit Area b. Estimate the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (a).$1,500,000 c. The graphic format permits the user to visually determine the ? and the ? for any given level of ? .
eBook Profit-Volume Graph For the coming year, Cabinet Inc. anticipates fixed costs of $63,450, a unit variable cost of $90, and a unit selling price of $105. The maximum sales within the relevant range are $710,640. a. Determine the maximum possible operating loss.$fill in the blank 1 b. Compute the maximum possible operating profit.$fill in the blank 2 c. Construct a profit-volume graph on paper. Indicate whether each of the following levels of sales is in the operating profit area, operating loss area, or at the break-even point. 1,000 units 2,000 units 3,000 units 4,000 units 5,000 units d. What is the break-even points in units.fill in the blank 8 units
Cost-Volume-Profit Chart For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of $75, and a unit selling price of $125. The maximum sales within the relevant range are $2,500,000. a. Construct a cost-volume-profit chart on a sheet of paper. Indicate whether each of the following levels of sales (units or dollars) is in the operating profit area, operating loss area, or at the break-even point. 4,800 units 12,000 units $1,500,000 20,000 units $2,500,000 b. Estimate the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (a). c. The graphic format permits the user to visually determine the and the * for any given level of
For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of $75, and a unit selling price of $125. The maximum sales within the relevant range are $2,500,000. Construct a cost-volume-profit chart on a sheet of paper. Indicate whether each of the following levels of sales (units or dollars) is in the operating profit area, operating loss area, or at the break-even point. 4,800 units: 12,000 units: $1,500,000: 20,000 units: $2,500,000: Estimate the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (a).
For the coming year, Bepis Inc. anticipates fixed costs of $700,000, a unit variable cost of $85, and a unit selling price of $105. The maximum sales within the relevant range are $2,500,000. Construct a cost-volume-profit chart.
For the coming year, Cleves Company anticipates a unit selling price of $100, a unit variable cost of $60, and fixed costs of $480,000. Instructions 1. Compute the anticipated break even sales (units) 2. Compute the sales (units) required to realize a target profit of $240,000 3. Construct a cost volume profit chart, assuming maximum sales of 20,000 units within the relevant range 4. Determine the probable income (loss) from operations if sales total 16,000 units
The following data are available for X Corp:Gross profit is 20% based on cost. Using ABC, compute the selling price of each unit of Product B?
Calculate gross profit, cost of goods sold, and selling price MBI Inc, had sales of $900 million for fiscal 2022. The company’s gross profit ratio for that year was 37.5%.Required:Calculate the gross profit and cost of goods sold for MBI for fiscal 2022.Assume that a new product is developed and that it will cost $1,625 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2022.From a management viewpoint, what would you do with this information?
For the coming year, Cleves Company anticipates a unit selling price of $134, a unit variable cost of $67, and fixed costs of $529,300. Required: 1. Compute the anticipated break-even sales (units). units 2. Compute the sales (units) required to realize a target profit of $281,400. units 3. Construct a cost-volume-profit chart on paper, assuming maximum sales of 15,800 units within the relevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even. $1,487,400 Profit $1,326,600 Profit $1,058,600 Break-even $790,600 Loss $629,800 Loss 4. Determine the probable operating income (loss) if sales total 12,600 units. If required, use the minus sign to indicate a loss.$ Income
MBI Incorporated had sales of $35 million for fiscal 2022. The company's gross profit ratio for that year was 26%. Required: a. Calculate the gross profit and cost of goods sold for MBI for fiscal 2022. b. Assume that a new product is developed and that it will cost $469 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2022. c. From a management viewpoint, it could use the estimated selling price as a "target" in conducting marketing research studies to assess its ultimate prospects for success at this price. Complete this question by entering your answers in the tabs below. Required A Required B Required C From a management viewpoint, it could use the estimated selling price as a "target" in conducting marketing research studies to assess its ultimate prospects for success at this price.
Use AstroTurf Company's income statement below to answer the following questions.Operating costs (excl. depreciations & amortization): $4.5mDepreciation and amortization: $1.5mInterest: $0.7mNet Income: $2.8mTax Rate: 35% What level of sales would generate a net income of $4.2m for the following year, knowing that operating costs (excl. depreciation and amortization) will increase by 7.5%, and given a 35% tax rate. Provide a step-by-step explanation for how you arrived at your above solution as though you were teaching a student to solve this type of problem.*
Myrtle Company has sales of $128,000, cost of goods sold of $58,000, operating expenses of $12,000, average invested assets of $400,000, and a hurdle rate of 7.75 percent. Calculate Myrtle's return on investment and its residual income. Note: Enter your ROI answer as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Residual Income (Loss) answer to the nearest whole dollar. Return on Investment (ROI) Residual Income (Loss) %

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