Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

YUX Corporation sells a single product for $60. Its management estimates the following revenues and costs for the year 2020: Net sales $636,000 Selling expensesvariable

YUX Corporation sells a single product for $60. Its management estimates the following revenues and costs for the year 2020:

Net sales $636,000 Selling expensesvariable $18,100
Direct materials 212,500 Selling expensesfixed 20,300
Direct labour 57,900 Administrative expensesvariable 10,000
Manufacturing overheadvariable 19,500 Administrative expensesfixed 9,200
Manufacturing overheadfixed 33,140

Assuming fixed costs and net sales are spread evenly throughout the year, determine YUXs monthly break-even point in units and dollars. (Round answers to 0 decimal places, e.g. 5,275.)

Monthly break-even in units units
Monthly break-even in dollars $

Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual profit. (Round answers to 0 decimal places, e.g. 15 or 15%.)

Contribution margin ratio %
Annual margin of safety ratio %
Annual profit $

Determine the percentage increase in annual profits if YUX Corporation increases its selling price by 20% and all other factors (including demand) remain constant. (Round answer to 2 decimal places, e.g. 15.25%.)

Percent increase in profit %

Assume the price remains at $60 per unit and variable costs remain the same per unit, but fixed costs increase by 20% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual profit calculated in part (b). (Round answer to 2 decimal places, e.g. 15.25%.)

Percent increase in unit sales %

Determine the sales required to earn an operating income of $391,800 after tax. YUX Corporations income tax rate is 40%.

Sales required to earn an operating income of $391,800 $

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

Corporate Risk Management

Authors: Faisal F. Al-Thani, Tony Merna

2nd Edition

0470518332, 978-0470518335

More Books

Students also viewed these Accounting questions

Question

Describe the linkages between HRM and strategy formulation. page 80

Answered: 1 week ago