3.1 Required: Calculate the following: 3.1.1 Break-even quantity. (4) 3.1.2 Break-even value using the marginal income...

3.1 Required: Calculate the following: 3.1.1 Break-even quantity. (4) 3.1.2 Break-even value using the marginal income ratio. (3) 3.1.3 Margin of safety (in terms of units). (3) 3.1.4 Expected total marginal income and net profit. (5) INFORMATION Sharpe Ltd manufactures calculators. The following information was extracted from the budget for the year ended 31 December 2017: Sales Selling price per calculator Variable production cost per unit Fixed production costs Variable selling and administrative costs per unit Fixed selling and administrative costs 5 400 units R270 R126 R144 000 R36 R72 000

Expert Solution

ekkarill92 answered 1 year ago

Consider a project with the following data: accounting break-even quantity = 24,240 units; cash break-even quantity...

Consider a project with the following data: accounting break-even quantity = 24,240 units; cash break-even quantity = 16,000 units; life = three years; fixed costs = $160,000; variable costs = $60 per unit; required return = 15 percent. Ignoring the effect of taxes, find the financial break-even quantity.

Consider a project with the following data: accounting break-even quantity = 11,175 units; cash break-even quantity...

Consider a project with the following data: accounting break-even quantity = 11,175 units; cash break-even quantity = 10,000 units; life = four years; fixed costs = $160,000; variable costs = $24 per unit; required return = 8 percent. Ignoring the effect of taxes, find the financial break-even quantity. (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Break-even quantity * Please post formula used*

Using the consumption function below, calculate consumption and savings at each level of income and find break-even income.

Using the consumption function below, calculate consumption and savings at each level of income and find break-even income. C = 140 + 0.6 Y Income(Y) Consumption(C) Savings(S) 140 ____________ ____________ 280 ____________ ____________ 420 ____________ ____________ 560 ____________ ____________ What is the break-even level of Income? ____________

Calculate the accounting break-even, the cash break-even and the financial break-even points for this project....

Calculate the accounting break-even, the cash break-even and the financial break-even points for this project. The company’s required return is 9% and the project will run for 5 years. Round your answer up to the next highest integer. Ignore any tax effects in calculating the cash break-even. Unit Variable Annual Fixed Equipment Unit Price Cost Costs Cost $ 3,020 $ 2,275 $ 9,000,000 $ 3,100.000

7. Calculating Break-Even [LO3] In each of the following cases, calculate the accounting break-even and the...

7. Calculating Break-Even [LO3] In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even. Unit Price Unit Variable Cost Fixed Costs Depreciation $2,980 46 9 $2,135 41 3 $8,100,000 185,000 2,770 $3,100,000 183,000 1,050

17. Using the following information, calculate the Break-Even in terms of dollars and number of units....

17. Using the following information, calculate the Break-Even in terms of dollars and number of units. (15 points) BELT MANUFACTURER Cost of leather per belt- $20 Cost of one belt buckle - $25 Cost to drill holes and attach buckle per belt - $5 Management payroll per month - $10,000 Operating expense per month - $20,000 Factory rent per month - $20,000 Price charged to retail store for 5 belts - $500 Cost per belt= $20, buckle /belt=$25, drill holes&buckle/belt=$5...

4). Calculate the numerical value of income elasticity in each of the following situations using the...

4). Calculate the numerical value of income elasticity in each of the following situations using the midpoint approach, and identify if the product is normal or inferior product. Purchases of automobiles rise from 2 million to 3 million when the average consumer income per year increases from $50,000 to $70,000. A fall in average consumer incomes per month from $3,000 to $2,800 leads to a drop in visits to massage therapists from 120,00 to 100,000 5). Calculate the numerical value...

Required information Exercise 7-16 Working with a Segmented Income Statement; Break-Even Analysis [LO7-4, LO7-5] [The following...

Required information Exercise 7-16 Working with a Segmented Income Statement; Break-Even Analysis [LO7-4, LO7-5] [The following information applies to the questions displayed below.] Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices—one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company’s most recent year is given: Office...

Consider the concept of break even analysis and target income. In order to apply break even...

Consider the concept of break even analysis and target income. In order to apply break even analysis, why would the expenses reported in external financial reports need to be reorganized into categories based on cost behavior? How do these analytical tools relate to product pricing and cost management (i.e., why would this analysis be useful to management)?

TASK-4 Calculate the total quantity of materials required for a production process and the total funds required...

TASK-4 Calculate the total quantity of materials required for a production process and the total funds required to purchase the materials. Mr. Fateh is the operations manager in an electrical equipment manufacturing company producing 3 different products. He needs to prepare a materials requirement plan for all THREE of his Products A, B & C, that is good for 6 months operation. Prepare an MRP chart for him and calculate the total budget (money) required for these materials. The BOM for...

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