Rheingold Company produces wireless phones. One model is the mini-phone–a basic model that is very small and slim. The mini-phone fits into a shirt pocket. Another model the inept-phone, has a larger display and is Internet-ready. For the coming year, Reingold expects to sell 200,000 mini-phones and 600,000 inet-phones. A segmented income statement for the two products is as follows: Mini-phoneNet-phoneTotalGH¢’000GH¢’000GH¢’000Sales 5,00036,00041,000Less variable costs2,40030,00032,400Contribution2,6006,0008,600Less direct fixed costs1,2009602,160Segment profit1,4005,0406,440Less common fixed costs1,280Operating income5,160Required:
Calculate the:
i. sales mix, in units, for the company
ii. sales mix, in revenue, for the company
iii. contribution per mix
iv. weighted average contribution per mix
v. weighted average contribution to sales ratio per mix
vi. number of mini-phones and net-phones that the company must sell to break even
vii. revenue that must be generated each by the two brands of phones to break even
viii. number of mini-phones and net-phones that the company must sell to earn a before-tax profit of GH¢ 20,000
ix. number of mini-phones and net-phones that the company must sell to earn an after-tax profit of GH¢ 20,000 (assume tax rate of 20%) revenue that must be generated each by the two brands of phones to earn before-tax profit of GH¢ 30,000
xi. revenue that must be generated each by the two brands of phones to earn before-tax profit of GH¢ 30,000 (assume tax rate of 20%
(a) From the following information you are required to construct:
(i) a break-even chart, showing the break-even point and the margin of safety;
(ii) a chart displaying the contribution level and the profit level;
(iii) a profit–volume chart.
Sales 6000 units at Br.12 per unit = Br.72 000
Variable costs 6000 units at Br.7 per unit = Br.42 000
Fixed costs = Br.20 000
(b) State the purposes of each of the three charts in (a) above.
(c) Outline the limitations of break-even analysis.
(d) What are the advantages of graphical presentation of financial data to executives?
Cost-volume-profit (CVP) analysis examines the behavior of total revenues, total costs, and operating income as
changes occur in the units sold, selling price, variable cost per unit, or fixed costs of a product.
3-2 Describe the assumptions underlying CVP analysis.
The assumptions underlying the CVP analysis outlined in Chapter 3 are
1. Changes in the level of revenues and costs arise only because of changes in the number of product (or
service) units sold.
2. Total costs can be separated into a fixed component that does not vary with the units sold and a variable
component that changes with the number of units sold.
3. When represented graphically, the behaviors of total revenues and total costs are linear (represented as a
straight line) in relation to number of units sold within a relevant range and time period.
4. The selling price, variable cost per unit, and fixed costs are known and constant
Scenario
JJ Cycles Ltd produce two high end bicycle products at two different factories. They need you to create a spreadsheet that can conduct a Cost Volume Profit Analysis for a selected product line. You can assume that sales price, fixed costs, and variable cost per unit are constant. You will need to calculate the labour costs, material costs, fixed costs and variable costs and then work out the break-even volume. You have also been asked to show a forecast for different unit volumes and produce a break-even analysis line chart. Start by downloading the assessment workbook from iLearn and copying/moving it to an appropriate folder. When you open the workbook, it is very important that you Enable Macros and Content. You will then be asked to enter your Student Number (you will not be able to edit it afterwards, so type it in carefully) and then enter your Student Name. Please note the first 3 worksheets are locked and you will only be able to change the cells specified.
a) Apply cost-volume-profit analysis to examine SLS’s break-even point for May 2013. Base your analysis on the assumption that only group classes are offered. Clearly state any other relevant and reasonable assumption(s) you made in your analysis. Explain the implications of your assumption(s) and analysis for the owners of SLS. (30 marks)
Covid Corp.’s manufacturing process yields a by-product “Corona” which requires selling expenses of P0.20 per unit to be sold. The sales of Corona are accounted for by showing the net amount as other income. Currently, the company is able to sell P10,000 units of these at P2.00 each. If Covid Corp. changes its method of accounting for Coronas’ sales by showing the net amount as additional sales revenue, then Corvid’s gross profit would A. Increase by P90,000 C. Decrease by P90,000 B. Increase by P18,000 D. Remain the same (BONUS: If Valentin decides to deduct Ellen’s net revenue from the main product’s COGS, then Valentin’s Net Income would be? 1 pt.)
What is his contribution margin?
2. What is his breakeven point (in units), given that he wants to cover all of his costs?
3. What day of the summer will he break even
In? 2016, the Allen Corporation had sales of $70? million, total assets of $47? million, and total liabilities of $22 million. The interest rate on the? company’s debt is 6.5? percent, and its tax rate is 35 percent. The operating profit margin is 13 percent. a. Compute the? firm’s 2016 net operating income and net income. b. Calculate the? firm’s operating return on assets and return on equity.? (Hint: You can assume that interest must be paid on all of the? firm’s liabilities.)
E22-13Glacial Company estimates that variable costs will be 62.5% of sales, and fixed costs will total $600,000. The selling price of the product is $4.
Instructions
(a) Prepare a CVP graph, assuming maximum sales of $3,200,000.
(Note: Use $400,000increments for sales and costs and 100,000 increments for units.)
(b) Compute the break-even point in (1) units and (2) dollars.
(c) Assuming actual sales are $2 million; compute the margin of safety in (1) dollars and (2) as a ratio.
You will write a 500 - 800-word essay on your person. This is a good organization pattern to follow in the writing of the essay. You do not have to follow this organization; it is only a suggestion.
PERSON IS TIMOTHY FINDLEY
Introduction - the introduction will likely only be 4-5 sentences. Catch reader' s interests with an attention getter, perhaps a questions or interesting fact about your person. Then write a thesis statement, a sentence telling the audience the topic of the essay.
The Early Years - This section should cover the early years of the person’s life. Begin all paragraphs with a topic sentence, then give supporting details. Remember, you are' t trying to summarize everything about your person, there are books about him/her. Give details about 2 or 4 important/interesting things or events from their early life.
Adult Life - This section will discuss the adult life of the person you choose. Begin all paragraphs with a topic sentence, then give supporting details. Give details about 2 or 4 important/interesting things or events from their adult life.
Contribution(s) to Canadian/world Literary History - This section is important because it is the reason you chose this person. This section should include the major events that make this person interesting and/or have changed their lives. Begin each paragraph with a topic sentence, then give supporting details. Describe at least two contributions to Canadian Literature your person has made.
Conclusion - the conclusion will likely be only 5- 7 sentences. Summarize for the reader what your report was about. Then make a statement or ask a question that lets the reader know your report is over.
- You have to write a formal and academic essay on Timothy Findley’ life
- 500 words minimum
- No plagiarism. 0% plagiarism – has to be tested by me
- Work should be academic grade 12 material Canada
- The work should be related to Timothy Findley
- Work should be given back to me in time 20 hours from this post. (August 30, 2015 - 6:00 pm Canada Toronto)
- If work does not meet these instructions, a full refund must be given to me.
- must be MLA Format