Question (1)

The following information were taken from B.B, Company ;

Sales Revenue (30,000 units) $ 1,200,000

Total Variable costs $ 900,000

Total Fixed Costs $ 100,000

Required :

1- Compute the company's Contribution Margin ratio and variable cost ratio

2- Compute BEP in units and Dollars

3- If the sales increase by $ 200,000, compute the expected increase in Contribution Margin

4- If the target profit $120,000, compute unit sales to attaint the target profit

5- Compute the margin of Safety in both dollars and percentage form

Question (2);

First :

The margin of safety in the S.S Company is $ 48,000. If the company's sales are $240,000 and its

variable expenses are $160,000,

Required

Calculate the fixed Costs

Second:

D, Inc. produces and sells a single product. The company has provided its contribution format income

statement for July.

Sales (8,000 units) $ 240,000 - Variable costs $ 120,000 - Fixed costs $25,000

Required:

If the company sells 10,500 units, What its net operating income

Question (3):

D.S Corporation produces and sells two products. In the most recent month, Product (X1) had sales of

$120,000 and variable expenses of $20,000. Product (X 2) had sales of $180,000 and variable

expenses of $60,000. And the fixed costs of the entire company were $50,000.

Required

What is The break-even point?

Question (3)

S. Company produces the product X, the data related to sales as follows:

Dec Jan Feb Mar

Sales units 20000 30000 400000 50000

Unit selling price $ 10 20 20 20

Required:

1- Prepare the Sales Budget for the first quarter:

2-If the collections policy including

Monthly sales collected as following

a. 30% collected cash at the same month of sale

b. The credit sales collected equally in the two months following the month of sale

Prepare

The cash collections budget for the first quarter