Company Y gave the following information to its management accounting department to make a cost...
80.2K
Verified Solution
Link Copied!
Question
Accounting
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 per unit Prepaid insurance cost for factory Variable cost [Selling) per unit Supplies 5.000 Seco S25 $40 2,800 300 $27 $10 3700- 3500 5500 units $8.00 $1500 $ 5.00 $2500 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 700 800 units if advertisement increased by $7500 and variable cost per unit for the sales increase will be $2.00. Should the company increase advertising expenses? $3.00 5. Determine sales revenue in units and $ necessary to generate after-tax profit of $15,000 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 $28000 $250 and tax rate is 12% 15.1
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
