ABC Company estimates the following data for the coming month: total variable costs $60,000.00, income tax...

ABC Company estimates the following data for the coming month: total variable costs $60,000.00, income tax rate 30%, contribution margin percentage 60%. Find the estimated total sales for the coming month.

	a.	$100,000
	A GUESS b.	$60,000 / 40%
	c.	$60,000 / 60%
	d.	$60,000 X 60%

Type or paste question here

Expert Solution

Particulars	%
Sales	100%
Less: Variable Cost	-40%
Contribution Margin	60%

Total sales = Total Variable Cost / % of Sales = $ 60,000 / 40%	$ 150,000

Particulars	Amount (in $ )
Sales	$ 150,000
Less: Variable Cost (40% )	($ 60,000)
Contribution Margin ( $ 90,000 / $ 150,000 = 60 % )	$ 90,000


Estimated total sales for the coming month	$ 60,000 / 40%

ekkarill92 answered 3 years ago

AD Company estimates that variable costs will be 70% of sales and fixed costs will total...

AD Company estimates that variable costs will be 70% of sales and fixed costs will total $1,800,000. The selling price of the product is $10, and 700,000 units will be sold. Instructions: Using the mathematical equation (a) Compute the break-even point in units and dollars. (b) Compute the margin of safety in dollars and as a ratio. (c) Compute net income.

Glacial Company estimates that variable costs will be 63.2% of sales, and fixed costs will total...

Glacial Company estimates that variable costs will be 63.2% of sales, and fixed costs will total $655,000. The selling price of the product is $3.90. Compute the break-even point in (1) units and (2) dollars. a. Break even sales __ units b. Break even sales __ $$ Assuming actual sales are $2,115,000, compute the margin of safety in (1) dollars and (2) as a ratio. a. Margin of safety __ $$ b. Margin of safety ratio (as percentage)

For the coming year, Swain Company estimates fixed costs at Php90,000, the unit variable cost at...

For the coming year, Swain Company estimates fixed costs at Php90,000, the unit variable cost at Php20, and the unit selling price at Php80. Determine (a) the break-even point in units of sales (b) the unit sales required to realize operating income of Php150,000 (c) the probable operating income if sales total Php500,000.

ABC Corp. The company has fixed costs of $300,000. Total costs, both fixed and variable, are...

ABC Corp. The company has fixed costs of $300,000. Total costs, both fixed and variable, are $378,000 when 40,000 units are produced. How much is the variable cost per unit? (Please round to the nearest cent.) The following information pertains to the ABC Corporation: Total Units for information given 7000 Fixed Cost per Unit $200 Selling Price per Unit $325 Variable Costs per Unit $225 Target Operating Income $100,000 How many units need to be sold in order to reach...

ABC Company is creating the production plan for the coming month. The company has collected the...

ABC Company is creating the production plan for the coming month. The company has collected the following data on the average marketing demand during the past 25 months. Month Demand 1 60 2 65 3 67 4 58 5 59 6 56 7 65 8 65 9 69 10 65 11 70 12 71 13 64 14 75 15 70 16 72 17 65 18 77 19 62 20 59 21 78 22 58 23 60 24 68 25 59...

A Company manufactures a product A. The company estimates the cost function for the total costs.

A Company manufactures a product A. The company estimates the cost function for the total costs. The cost driver is number of units. The following informations were collected: Month Units Total CostsJanuary 3,560 $242,400February 3,800 $252,000March 4,000 $260,000April 3,600 $244,000May 3,200 $228,000June 3,040 $221,600 Compute a cost function using the high-low method.

assume a company incurs 100,000 for total variable costs and 150000 for total fixed costs to...

assume a company incurs 100,000 for total variable costs and 150000 for total fixed costs to produce 10000 units. what would the total cost be to produce 12000 units?

Question 5:(total 8 marks) XEMACompany estimates that variable costs will be 60% of sales and fixed...

Question 5:(total 8 marks) XEMACompany estimates that variable costs will be 60% of sales and fixed costs will total $900,000. The selling price of the product is $5, and 500,000 units will be sold. Instructions: Using the contribution margin: (a) Compute the break-even point in units and dollars. (3marks) (c) Compute the margin of safety in dollars and as a ratio. (d) Compute net income.

. The ABC company estimates that its employees are currently averaging $100 or less per month...

. The ABC company estimates that its employees are currently averaging $100 or less per month in tax-deferred savings. A sample of 50 employees will be used to test ABC's hypothesis about the current level of savings activity among the population of its employees. Assume that the employee tax-deferred savings amounts have a standard deviation of $80 and that a 5% level of significance will be used for the test. What is the probability of making a Type II error...

No. of Products Total Variable Costs, $ Total Costs $ Average Fixed Cost $ Average Variable...

No. of Products Total Variable Costs, $ Total Costs $ Average Fixed Cost $ Average Variable Cost $ Average Total Cost $ Marginal Cost$ 0 0 1 12 2 20 3 24 4 27 5 40 6 65 7 98 Assume that the fixed cost is $80, calculate the above costs in the table and explain the difference between average total costs and marginal costs. In a graph illustrate the Average Total Cost and Marginal Cost Curves, explain their relationship....

Question