answer to question 1-10

Lec 4: Online Homework Question - CVP - Autumn 2022 The Maxtel Manufacturing Company is a single product firm which manufactures, and markets earphones for mobile phone companies. The company uses a standard cost system and a flexible budget for factory overhead. Both have proved to be highly accurate over the past 12 months. Details relating to the past 12 months : Sales Revenue (60,000 units) $2,100,000 Direct Materials $ 551,400 Conversion Costs $1,024,800 Cost of Goods Sold $1,576,200 Gross Profit $ 523,800 Selling and Administration Expenses $ 345,000 Profit (before taxes) $ 178,800 Taxes (30%) $53,640 Profit (after taxes) S 125,160 Additional Information: Variable factory overhead per unit = $7.37 per unit Fixed factory overhead = $246,000 p.a. Fixed Selling & Admin. Expenses = $120,000 p.a. Note: (Direct Materials + Direct Labour + Variable Overhead = Variable Production Costs) Selling & Administrative Expenses Variable S & A Expense + Fixed S & A Expense (Consider each part independently of all other parts, with each part referring to the original data). Using manual procedures and/or Goal Seeking and / or Solver to generate answers to the following scenarios. Required Unless otherwise stated use the original data in the question. (1) Calculate the Gross Profit Margin (Sales - COGS - Gross Profit Ratio) (2) Calculate the after-tax Operating Profit Margin. (3) Calculate the Contribution Margin per unit. (4) Calculate the Contribution Margin Ratio. (4 decimal points) (5) What is the breakeven point in Units for the company? (6) At a selling price of $38.00 per unit, calculate the sales quantity required to earn an Operating profit before tax of $140,000. (7) Calculate the price per unit necessary to achieve an after-tax profit of 12% on total revenue based on a sales volume of 60,000 units. (4 decimal points) (8) Calculate the sales volume necessary to achieve an after-tax profit of 13% on the sum of total cost of sales and operating expenses (based on a selling price of $38 per unit). (9) At a sales quantity of 70,000 units and using a selling price of $38.00, what is the reduction in variable costs per unit, necessary to earn an after-tax profit equal to 13% of Sales Revenue? (4 decimal points) a (10) A sales enquiry is received from an overseas firm. What would be the minimum price at which earphones could be sold to the overseas firm assuming total domestic sales of 45,000 units per annum at a price of $38 per unit. The company requires an after-tax return of 8% on total revenue. The export order is for 10,000 cans. (4 decimal points) 22567 - Lecture 4 - Online Homework - Autumn Semester 2022 - Template - - 2 100 000 Sales Qty 60 000 551 400 1 024 800 1 576200 Sales Less COGS Direct Materials Conversion Costs Total Cost of Goods Sold Gross Profit Less Sell & Admin Expenses Profit Before Tax Less Tax Profit after Tax 523 800 345 000 178 800 178 800 Variable Costs Fixed Costs Total Cost Unit Variable Costs Direct Materials Direct Labour Overhead Sellin & Admin Expenses Totals SALES Revenue - VARIABLE Cost = CONTRIBUTION MARGIN Sales Less Variable Costs Contribution Margin Solutions Area Data Area Sales Units Unit Sell Price Sales Less Variable costs Contribution Margin Less Fixed Costs Pre-Tax Profit Less Taxation Profit AFTER Tax Variable Costs Fixed Costs Tax Rate