62. The following data relate to Homer Company which sells a single product: Unit selling price P 20.00 Purchase cost per unit 11.00 Sales commission, 10% of selling price 2.00 Monthly fixed costs 80,000 The firm's salespersons would like to change their compensation from a 10 percent commission to a 5 percent commission plus P20,000 per month in salary. They now receive only commissions. At what sales volume would the two compensation plans be indifferent? А. 12,500 C. 22,222 В. 20,000 D. 22,860
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- Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.
- White Lake Inc. produces and sells a single product. Data concerning that product appear below: Selling price per unit $ 230.00 Variable expense per unit $ 103.50 Fixed expense per month $ 518,650 Required: a. What is the minimum amount of sales revenues in dollars to break even? b. Assume the company's monthly target profit is $12,650. Determine the number of units that White Lake needs to sell to attain this target profit?A company sells its product at P30 per unit. Unit variable cost is P22 and total fixed costs total to P100,000 per month. The company currently pays salaries of P40,000 per month but with no commission. It is considering a compensation plan whereby the salespeople would receive 5% commission based on sales, but their salaries would be decreased to P25,000 per month. At what sales level is the company indifferent between the two compensation plans?A company sells its product at P30 per unit. Unit variable cost is P22 and total fixed costs total to P100,000 per month. The company currently pays salaries of P40,000 per month but with no comission. It is considering a compensation plan whereby the salespeople would receive 5% commission based on sales, but their salaries would be decreased to P25,000 per month. At what sales level is the company indifferent between the two compensation plans?
- 1. What would be the BEP in units sales if the company decides to:Increase the sales price from $100 to $105 by spending annually $5000 for advertisement? 2. What would be the BEP in units sales if the company decides to: Increase the sales price from $100 to $105 and cutting the fixed salary of the salespeople by $15000 and instead provides them $10 per unit commission? 3. Which one of the following options provides better units BEP for the company? Option A: Increase the sales price from $100 to $105 by spending annually $5000 for advertisement OptionB: Increase the sales price from $100 to $105 and cutting the fixed salary of the salespeople by $15000 and instead provides them $10 per unit commission. a) option A b) option B c) both options are same d) None of the optionsSHOW YOUR SOLUTION IN GOOD ACCOUNTING FORM. THANK YOU A company sells its product at P30 per unit.Unit variable cost is P22 and total fixed coststotal to P100,000 per month. The companycurrently pays salaries of P40,000 per monthbut with no commission. It is considering acompensation plan whereby the salespeoplewould receive 5% commission based onsales, but their salaries would be decreasedto P25,000 per month. At what sales level isthe company indifferent between the twocompensation plans?Problem II. Omega Enterprises sells two products, Model E100 and F900. Monthly sales and the contribution margin ratios for the two products, follow: Product E100 F900 Total Sales P 700,000 P 300,000 P 1,000,000 Contribution margin ratio 60% 70% The Company’s fixed expenses total P598,500 per month. What is the company’s total contribution margin ratio? What is the company’s total net operating income? The break-even point for the company based on the current sales mix is ______.
- Northpoint Company sells several products. Information of average revenue and costs are as follows: (Final answer must be DOUBLE RULE) $30.00 Selling price per unit Variable costs per unit: Direct materials $6.00 Direct manufacturing labor $2.60 Manufacturing overhead $3.40 Selling costs $5.00 y Annual fixed costs $126,000 Tax Rate 35% 1. Compute for the breakeven point in Units and Pesos. 2. How much is the selling price per product to earn an after tax income of $93,000 assuming that the company sold 45,000 units? (round it to whole number) 3. Calculate the Sales required to earn a gross income of $110,000. 4. Assuming the Tax rate is 40% and the fixed cost is increased by 25%, if the company wants to earn after tax income of $150,000, how many units must be sold?A certain company sells its product at (45 – 0.08x) pesos per unit. Variable cost per unit is P 25 while fixed cost is P 1,200. a. Find the break-even quantity and revenue b. Find the maximum point c. Find the profit at a sale of 120 units.A company manufactures and sells a single product whose selling price is P500 and whose variable expense is P300 per unit. The company’s monthly fixed expense is P120,000. Required:1. Solve for the unit sales that are required to earn a target profit of P80,000. 2. If the company wants to earn a profit of P200,000, how much should be the sales revenue?