Question
NB: As you can't manufacture part of a unit please round your answers up. 1. Break even point in units for Tennis World Ltd: (1
NB: As you can't manufacture part of a unit please round your answers up. 1. Break even point in units for Tennis World Ltd: (1 mark)(Enter amount only, do not use decimal points or commas) Answer 2. Break-even point in sales dollars for Tennis World Ltd: (1 mark)(Enter amount only, do not use dollar signs, decimal points or commas)Answer 3. How many rackets would Tennis World have to sell in order to earn a profit of $350,000? (1 mark) (Enter amount only, do not use decimal points, dollar signs or commas) Answer 4. What is the firm's Safety Margin? (1 mark)(Enter amount only, do not use dollar signs , decimal points or commas) Answer 5. How many rackets would Tennis World have to sell in order to earn a profit of $350,000 after tax? Assume Tennis World pays income tax of 30% (1 mark)(Enter amount only, do not use dollar signs, decimal points or commas) Answer 6.Management of Tennis World estimates that the variable manufacturing overhead costs will increase by 10% next year. How many rackets will the company have to sell next year to reach break-even point? (1 mark)(Enter amount only, do not use dollar signs, decimal points or commas)Answer
The following information relates to Tennis World: $265 Selling price per racket Variable costs per racket: Direct material Direct Labour Manufacturing Overhead Selling costs Total variable costs per racket Annual fixed costs: Manufacturing Overhead Selling and Administrative Total Fixed costs Forecast annual sales (75000) $75 $25 $20 $15 $135 450,000 350,000 800,000 19,875,000 NB: As you can't manufacture part of a unit please round your answers up. 1. Break even point in units for Tennis World Ltd: (1 mark)(Enter amount only, do not use decimal points or commas) 2. Break-even point in sales dollars for Tennis World Ltd: (1 mark)(Enter amount only, do not use dollar signs, decimal points or commas) 3. How many rackets would Tennis World have to sell in order to earn a profit of $350,000? (1 mark) (Enter amount only, do not use decimal points, dollar signs or commas) 4. What is the firm's Safety Margin? (1 mark)(Enter amount only, do not use dollar signs, decimal points or commas) 5. How many rackets would Tennis World have to sell in order to earn a profit of $350,000 after tax? Assume Tennis World pays income tax of 30% (1 mark)(Enter amount only, do not use dollar signs, decimal points or commas) 6.Management of Tennis World estimates that the variable manufacturing overhead costs will increase by 10% next year. How many rackets will the company have to sell next year to reach break-even point? (1 mark) (Enter amount only, do not use dollar signs, decimal points or commas) The following information relates to Tennis World: $265 Selling price per racket Variable costs per racket: Direct material Direct Labour Manufacturing Overhead Selling costs Total variable costs per racket Annual fixed costs: Manufacturing Overhead Selling and Administrative Total Fixed costs Forecast annual sales (75000) $75 $25 $20 $15 $135 450,000 350,000 800,000 19,875,000 NB: As you can't manufacture part of a unit please round your answers up. 1. Break even point in units for Tennis World Ltd: (1 mark)(Enter amount only, do not use decimal points or commas) 2. Break-even point in sales dollars for Tennis World Ltd: (1 mark)(Enter amount only, do not use dollar signs, decimal points or commas) 3. How many rackets would Tennis World have to sell in order to earn a profit of $350,000? (1 mark) (Enter amount only, do not use decimal points, dollar signs or commas) 4. What is the firm's Safety Margin? (1 mark)(Enter amount only, do not use dollar signs, decimal points or commas) 5. How many rackets would Tennis World have to sell in order to earn a profit of $350,000 after tax? Assume Tennis World pays income tax of 30% (1 mark)(Enter amount only, do not use dollar signs, decimal points or commas) 6.Management of Tennis World estimates that the variable manufacturing overhead costs will increase by 10% next year. How many rackets will the company have to sell next year to reach break-even point? (1 mark) (Enter amount only, do not use dollar signs, decimal points or commas)Step by Step Solution
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