Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Company Y gave the following information to its management accounting department to make a cost profit volume analysis about the company Sales In units Sales

image text in transcribed

Company Y gave the following information to its management accounting department to make a cost profit volume analysis about the company Sales In units Sales Variable manufacturing overhead in units Unit variable cost for overhead Fixed Cost [factoryl per unit Units produced Production Capacity Selling fixed cost per unit Prepaid insurance cost for factory Variable cost [Selling) per unit Supplies 5.000 Seco S25 $40 2,800 300 $27 $10 3700- 3500 5500 units $8.00 $1500 $ 5.00 $2500 REQUIRED 1. Calculate CM per unit; CMR 2. Determine the breakeven point in units and $ 3. Calculate margin of safety in $ & %. 4. The sales manager believes that the company could increase sales by 700 800 units if advertisement increased by $7500 and variable cost per unit for the sales increase will be $2.00. Should the company increase advertising expenses? $3.00 5. Determine sales revenue in units and $ necessary to generate after-tax profit of $15,000 6. Determine the sales revenue in units and $ necessary if the company wants to base its target profit on before tax profit. The after tax profit is $28000 $250 and tax rate is 12% 15.1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Theory

Authors: Craig Deegan, H. Bierman

4th Edition

0071013148, 978-0071013147

More Books

Students also viewed these Accounting questions

Question

Evaluate the following integrals. x 2 e 4x dx

Answered: 1 week ago

Question

Timeline for final evaluation

Answered: 1 week ago

Question

How will it be used?

Answered: 1 week ago