Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I want it step by step solution, please CVP question ABC company has provided the following information about the company Sales = $210000 PRODUCTION Variable

I want it step by step solution, please

image text in transcribed
CVP question ABC company has provided the following information about the company Sales = $210000 PRODUCTION Variable cost [manufacturing] = $43000 Fixed cost [manufacturing ]= $75000 SELLING SLADMIN Variable cost = $25000 Fixed cost = 532000 Units produced = 1500 Production capacity = 2000 units REQUIRED 1. Calculate CM per unit; CMR 2. Determine the breakeven point in units and S 3. Calculate margin of safety in $ & %. 4. The sales manager believes that the company could increase sales by 700 units if advertising is increased by $15000. Should the company increase advertising expenses? 5. Determine the sales revenue necessary to generate before tax profit of $48000. 5. Determine sales revenue necessary to generate after-tax profit of $27000 if tax rate is 30% 7. Calculate degree of leverage [DOL] and if sales increases by 20%, what will be the net income of this company. [use original data in the beginning]

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_2

Step: 3

blur-text-image_3

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

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

9th Edition

1118334329, 978-1118334324

More Books

Students also viewed these Accounting questions

Question

Define line and staff authority

Answered: 1 week ago

Question

Define the process of communication

Answered: 1 week ago

Question

Explain the importance of effective communication

Answered: 1 week ago

Question

* What is the importance of soil testing in civil engineering?

Answered: 1 week ago

Question

Always have the dignity of the other or others as a backdrop.

Answered: 1 week ago