Question
1. Kristin is a distributor of brass picture frames. for 20X4, she plans to purchase for P30 each and sell them for P45 each. Kristin's
1. Kristin is a distributor of brass picture frames. for 20X4, she plans to purchase for P30 each and sell them for P45 each. Kristin's fixed costs are expected to be P240,000. Kristin's only other costs will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery, and following up for collecting accounts receivable. the P60 cost will be incurred each time Kristin ships an order of picture frames, regardless of the number of frames in the order. Question: Suppose Kristin sells 40,000 picture frames in 1,000 shipments in 20X4, what is the operating income?
2.Kristin is a distributor of brass picture frames. for 20X4, she plans to purchase for P30 each and sell them for P45 each. Kristin's fixed costs are expected to be P240,000. Kristin's only other costs will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery, and following up for collecting accounts receivable. the P60 cost will be incurred each time Kristin ships an order of picture frames, regardless of the number of frames in the order. Question: Suppose Kristin sells 40,000 picture frames in 800 shipments in 20X4, what is the operating income?
3.Marcus Company manufactures and sells a single product, Product E. The product sells for P60 per unit and has a C/M ratio of 40%. The company's monthly fixed expenses are P28,800. The variable cost per unit of Product E is
4.Marcus Company manufactures and sells a single product, Product E. The product sells for P60 per unit and has a C/M ratio of 40%. The company's monthly fixed expenses are P28,800. If the selling price were reduced by P1.00 and fixed costs increased to a total of P38,400, how many units would need to be sold to earn an income of P21,000 (ignore taxes)?
5.If a firm has a break-even point of 20,000 units and the contribution margin on the firm's single product is P3.00 per unit and fixed costs are P60,000, what will the firm's net income be at sales of 30,000 units?
6.Kristin is a distributor of brass picture frames. for 20X4, she plans to purchase for P30 each and sell them for P45 each. Kristin's fixed costs are expected to be P240,000. Kristin's only other costs will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery, and following up for collecting accounts receivable. the P60 cost will be incurred each time Kristin ships an order of picture frames, regardless of the number of frames in the order. Question: Suppose Kristin anticipates making 500 shipments in 20x4. How many picture frames must Kristin sell to break even in 20x4?
7.Marcus Company manufactures and sells a single product, Product E. The product sells for P60 per unit and has a C/M ratio of 40%. The company's monthly fixed expenses are P28,800. The break even point for Product E is
8.If EBIT equals P140,000 and interest equals P21,000, with rate of 31%, what is the degree of financial leverage?
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