Fixed costs fixed costs 495000 sales 825 variable 33 tax 30 target net income

Fixed costs fixed costs 495000 sales 825 variable 33

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the swift meal has two restaurants that are open 24hours a day. Fixed costsfixed costs495000sales8.25variable3.3tax30%target net income138600customer1500001target operating income=targeted net income/1-taxvariable cost ratevariable cost/sales price198000138600/70%0.43.3/8.25revenues-variable-fixed costs=targeted net income/1-tax115500046200049500013860070%0.669300021.6666671155000fixed costs/contribution margin per custome=customer needed to break even495000/4.95=100000total revenues/sales=customer needed to earn target net income1155000/8.25 =1400003change in number of customers *contribution margin*(1-tax)=change in net income10000*4.95*70%34650change in net income+original target net income=new net income34650138600173250
L D Luand company a manufacturer of quality handmade walnut bowlsfixed costs147000aditional fixed10500sales24variable13.5tax40%expected sales reveneus480000revenues516000expected sales20000sales21500desired402001target operating income=targeted net income/1-tax800000480000/60%revenues-variable-fixed costs=targeted net income/1-tax4800002700001470003780060%expected sales*variable cost per unit =variable costs2000013.52700002fixed costs/contribution margin per custome=customer needed to break even147000/10.5=140003revenues-variable-fixed costs=targeted net income/1-tax51600029025015750040950/60%expected sales*variable cost per unit =variable costs2150013.52902504fixed costs/contribution margin per custome=customer needed to break even157500/10.5=15000breakeven point revenuecustomer needed to break even *price36000015000245revenues-variable-fixed costs=targeted net income/1-tax10.52205005040002835001575003780060%number of unit210000.095238210006revenues-variable-fixed costs=targeted net income/1-tax5160002902501587504020060%maximum amount11750
welch mens clothings revenues and cost data for 2011 are as followrevenues500000cost of goods sold250000gross margin250000operating costssalarie190000new variable40000commissions40000new fixed20000depreciation14000increase revenue15%store rent48000increase fixed14000other 60000352000operating income(loss)-1020001renevues-total variable=contribution margin500000330000=1700002contribution margin/revenues=contribution margin percentage170000/500000 =34.00%3increase in contribution margin-advertising costs=increase in operating income255001400011500

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