Exercise 4-12 target profit and break-even analysis; margin of safety


Exercise 4-12 Target Use and Break-Even Analysis; Loophole of Safety; CM Harmony [LO1, LO3, LO5, LO6, LO7]
Exercise 4-12 Target Use and Break-Even Analysis; Loophole of Safety; CM Harmony [LO1, LO3, LO5, LO6, LO7]
 
Menlo Troop distributes a unmarried result. The troop's sales and expenses for conclusive month follow:

   Total Per Unit
  Sales $1,092,000   $70
  Varicausative expenses 764,400   49
  Subscription loophole 327,600   $21
  Urban expenses 264,600   
  Net liberal proceeds $63,000   
________________________________________
 
Requirement 1:
What is the monthly break-even apex in aces sold and in sales dollars? (Omit the "$" prognostic in your exculpation.)

Requirement 2:
Without repairinging to computations, what is the unimpaired subscription loophole at the break-even apex? (Omit the "$" prognostic in your exculpation.)
Requirement 3:
How divers aces would entertain to be sold each month to win a target use of $96,600? Use the formula manner.

  Units sold  aces 


Requirement 4:
Refer to the primary basis. Compute the troop's loophole of insurance in twain dollar and percentage provisions. (Round your percentage appreciate to 2 decimal places. Omit the "$" and "%" prognostics in your exculpation.)

    Dollars Percentage  
  Loophole of insurance $  
 % 

________________________________________

 
Requirement 5:
What is the troop's CM harmony? If sales extension by $91,000 and there is no fluctuate in urban expenses, by how abundantly would you forecast monthly net liberal proceeds to extension?(Omit the "$" and "%" prognostics in your exculpation.)

  
  CM harmony  % 

  Increased net liberal proceeds $     

 

Problem 4-31 Changes in Urban and Varicausative Costs; Target Use and Break-Even Analysis [LO4, LO5, LO6]
 
Neptune Troop amounts toys and other items for use in seacoast and repairing areas. A narrow, inflatcausative toy has end onto the communicate that the troop is solicitous to amount and hawk. The new toy gain hawk for $2.9 per ace. Enough volume exists in the troop's fix to amount 30,900 aces of the toy each month. Varicausative requires to fabrication and hawk one ace would be $1.84, and urban requires associated after a while the toy would unimpaired $48,631 per month.
 
     The troop's Marketing Department predicts that insist for the new toy gain abound the 30,900 aces that the troop is causative to amount. Affixed manufacturing immeasurableness can be rented from another troop at a urban require of $2,432 per month. Varicausative requires in the rented pliancy would unimpaired $2.03 per ace, due to partially close causative operations than in the main fix.

Requirement 1:

(a)   Calculate the subscription loophole per ace on anything aggravate 30,900 aces. (Round your rejoinder to 2 decimal places. Omit the "$" prognostic in your exculpation.)

  Subscription loophole $  

 
(b)   Compute the unimpaired urban requires to be mature if over than 30,900 aces are amountd. (Omit the "$" prognostic in your exculpation)

  Unimpaired urban requires to be mature by cherishing sales $  

 
(c)   Compute the monthly break-even apex for the new toy in aces and in unimpaired sales dollars. (Round your rejoinders to the right unimpaired estimate. Omit the "$" prognostic in your exculpation.)

  
  Monthly break-even apex in ace sales  aces 

  Monthly break-even apex in dollar sales $          

________________________________________
 
Requirement 2:
How divers aces must be sold each month to fabricate a monthly use of $10,962?

  Units to be sold  aces 

 
Requirement 3:
If the sales overseer receives a benefit of 20 cents for each ace sold in extravagance of the break-even apex, how divers aces must be sold each month to win a revert of 21% on the monthly cannonade in urban requires? (Round your rejoinder to the right unimpaired estimate.)

  Unimpaired aces to be sold  aces 

 

Problem 6-15 Comprehensive Problem after a while Strive Urban [LO1, LO2, LO3, LO4]
[The subjoined notification applies to the questions displayed beneath.]
Far North Telecom, Ltd., of Ontario, has organized a new resistance to fabrication and hawk specialty cellular telephones. The resistance's monthly requires are shown beneath:

  
  Manufacturing requires: 
    Varicausative requires per ace: 
      Direct materials $88   
      Varicausative manufacturing aggravatehead $3   
  Urban manufacturing aggravatehead requires (total) $220,400   
    Selling and authoritative requires: 
    Variable 12% of sales   
    Urban (total) $163,000   
________________________________________

     Far North Telecom commendations all of its workers as full-time employees and the troop has a pristine no layoff device. Furthermore, resultion is exceedingly automated. Accordingly, the troop includes its strive requires in its urban manufacturing aggravatehead. The cellular phones hawk for $330 each. During September, the foremost month of operations, the subjoined motive was recorded:

  
  Units amountd 3,800 
  Units sold 3,000 
________________________________________
 
rev: 02-09-2011
references
Section Break Problem 6-15 Comprehensive Problem after a while Strive Urban [LO1, LO2, LO3, LO4] 

 


 1.
value:
20.00 apexs
 
 
Problem 6-15 Condition 1

Requirement 1:
(a) Compute the ace result require inferiorneathneath Parching requireing. (Omit the "$" prognostic in your exculpation.)

  Ace result require $  


 
(b) Compute the ace result require inferiorneathneath Varicausative requireing. (Omit the "$" prognostic in your exculpation.)

  Ace result require $  

2.
value:
20.00 apexs
 
 
Problem 6-15 Condition 2

Requirement 2:
Prepare an parching requireing proceeds announcement for September.(Input all amounts as substantial appreciates. Omit the "$" prognostic in your exculpation.)

Requirement 3:
Prepare a subscription format proceeds announcement for September using varicausative requireing. (Input all amounts as substantial appreciates negative net liberal missing which should be involved by a minus prognostic. Omit the "$" prognostic in your exculpation.)

 Requirement 4:
Assume that the troop must succeed affixed financing in regulate to abide operations. As a component of top treatment, would you choose to trust on the announcement in (2) over or in (3) over when consultation after a while a cluster of prospective investors?
 
rev: 02-09-2011
 
Absorption requireing announcement
 
Varicausative requireing announcement
Requirement 5:
Reconcile the parching requireing and varicausative requireing net liberal proceedss in condition 2 and 3 over. (Negative amounts should be involved by a minus prognostic. Omit the "$" prognostic in your exculpation.)
 
  
$      : Urban manufacturing aggravatehead require deferred