Casio Company sells ipads for children, at $85 each. - SP

For the coming year, management expects fixed costs to total $520,000 and Variable cost to be $25 per unit.

1.Calculate the break-even point in units if current volumes are at 88000

2.Calculate the BEP in dollars using the CMR (Contribution Margin Ratio)

3.Calculate the MOS Margin of Safety - using Actual sales of $999,000

4.Calculate the Sales required in dollars to earn an Operating Income of $565,000.

5.Assume a 20% increase in selling price and cost price per unit what will be the new Net profit

6.The Company has a new social media parter who will promote the company products on Amazon but will take 25% of profits as Sales commission. Calculate the new BEP.

7.Raw material prices are on an increase and CPU will increase 20% over last year with Sales price reminaing the same. What is the new NP and BEP?

8.The Company is buying a new machinery that will increase overhead costs by $90,000. What is the new Net Profit?

9. The Company is beginning to make new hand writing pads to capture voice to written text. Their product cost is RM - 85, DL 45 - MOH -10 per unit.

They estimate that 100000 units will be sold next year. Assuming a 33% mark up - What is the NP for this company?

Which product is more profitable between the calcuator and the Writing pad.

Where should the focus of Casio company be on if they have only 200000 hours of machine production Where should the focus of Casio company be on if they have only 200000 hours of machine production

Answer below Base BEP FORMAT S VC CM FC NP