Ventana Inc. sells a single product for $48. Its management estimates the following revenues and costs for the year 2019:<\/p>
Net Sales $620,000 Selling expenses - Variable $18,500<\/p>
Direct Materials 85,000 Selling expenses - Fixed 21,500<\/p>
Direct Labour 78,000 Admin expenses - Variable 3,500<\/p>
Mfg Overhead - Variable 32,000 Admin expenses - Fixed 2,500<\/p>
Mfg Overhead - Fixed 25,000<\/p>
<\/p>
Required:<\/p>
1.Assuming fixed costs and net sales are spread evenly throughout the year, determine Ventana's monthly break-even point in (a) units and (b) dollars.<\/p>
2.Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual profit<\/p>
3.Determine the percentage increase of annual profits if Ventana Inc. increases its selling price by 25% and all other factors (including demand) remain constant.<\/p>
4.Assume the price remains at $48 per unit and variable costs remain the same per unit, but fixed costs increase by 15% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual profit calculated in required # 2<\/p>
5.Determine the sales required to earn an operating income of $375,000 after tax. Ventana Inc.'s income tax is 28%.<\/p>", "transcribed_text": "", "related_book": { "title": "Accounting Principles", "isbn": "1119491630, 978-1119491637, 978-0470534793", "edition": "10th Edition", "authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/54.jpg", "uri": "\/textbooks\/accounting-principles-10th-edition-54", "see_more_uri": "" }, "free_related_book": { "isbn": "1400079977", "uri": "\/textbooks\/strapped-why-americas-20-and-30-somethings-cannot-get-ahead-1st-edition-9781400079971-9780307279798", "name": "Strapped Why Americas 20 And 30 Somethings Cannot Get Ahead", "edition": "1st Edition" }, "question_posted": "2024-06-29 02:30:30", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/why-are-pseudo-variable-logically-unnecessary", "description": "Why are pseudo variable logically unnecessary?", "stars": 3 }, { "url": "\/study-help\/psychology\/after-the-initial-groups-were-defined-were-subgroup-analyses-conducted-1979872", "description": "After the initial groups were defined, were subgroup analyses conducted, based on age, race\/ethnicity, disability, grade level, sex, socioeconomic status, or similar variables?", "stars": 3 }, { "url": "\/the-fanta-company-presents-you-with-the-following-account-balances", "description": "The Fanta Company presents you with the following account balances taken from its December 31, 2007 adjusted trial balance: Inventory, January 1, 2007 ............. $ 43,000 Selling expenses...", "stars": 3 }, { "url": "\/study-help\/questions\/a-function-is-satisfiable-if-there-exists-an-assignment-of-9862700", "description": "A function is satisfiable if there exists an assignment of 1s and 0 s to the variables that makes the function evaluate to 1 . 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