Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please do fast it CVP question Company Y gave the following information to its management accounting department to make a cost profit volume analysis about

please do fast it
image text in transcribed
CVP question 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 Prepaid insurance cost for factory Variable cost [Selling] Accrued cost 2,000 $35 2,000 $17 $11 2700 3500 units $8,000 $1500 $ 9000 $1500 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 200 units if advertisement increased by $2500. Should the company increase advertising expenses? 5. Determine sales revenue in units and $ necessary to generate after-tax profit of $50,000 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 $18000 and tax rate is 20% 7. Calculate degree of leverage (DOL) and if sales increases by 18%, what will be the total net income of this company after the sales increase. (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

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

Sound Investing, Chapter 7 - Cash Versus Accrual

Authors: Kate Mooney

1st Edition

0071719296, 9780071719292

More Books

Students also viewed these Accounting questions