Casio company sells ipads for children at $85 each -SP.
for the coming year, management expects fixed cost to total $520,000 ana variable cost to be $25 per unit.
ASSIGNMENT 2 In CSS Class Pucice question Casio Company sels 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 5. Assume a 20% increase in selling price and cost price per un what will be the new it profit 6. The Company has a new social media parter who will promote the company products on Amazon Exit will take 25% of profits as Sales commission Calculate the new BEP 1 7 Raw material prices are on an increase and CPU will increase 20% aver last year with Sales price cominning the same What is the new NP and BEP? 2 8 The Company is buying a new machinery that will increase overed costs by $90,000 What is the new Net Profit? 3 9 The Company is beginning to make new hand writing pads to capture voice to written text Their product costis RM 85, DL 45 - MOH-10 per un 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 Where should the focus of Casio company be on if they have only 200000 hours of machine production Base Answer below - DP FORMAT 2 s VC CM FC NP Cost Volume Profit Formulas 1. Sales - Variable Expenses Contribution Margin SS la. Selling Price per Unit - Variable Expenses per Unit = CM per Unit 2. Breakeven point in Units Fixed Expenses CM unit 3. Breakeven point in Dollars - B'E Units x Selling Price per Unit 4 Breakeven point in Dollars - Fixed Expenses CM Ratio 5. Contribution Margin Ratio - CM/Sales 6. Sales - Variable expenses -- Fixed Expenses - Operating Profit (income) 6a. S-VC=CM: CM - Fixed Operating Profit (Income) 7. Target Sales in Units - Fixed Expenses + Target Operating Profit CM unit 8. Target Sales in Dollars - Fixed Expenses + Target Operating Profit CM ratio 9. Operating Leverage=CM/Net income 10. Safety Margin-Budgeted Sales - Breakeven Sales 1 3. 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 remninaing the same. What is the new NP and BEP? 8. The Company is buying a new machinery that will increase overhead costs by 890,000. 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 What should the foow of Casio company be on it they have aly 200000 hours of machine production Am SPOEMA 5 IVE CH 1 NP
