expected unit sales, revenues and profits

Related BrainMass Solutions

• Managerial Accounting: Break Even Point Analysis

  What is the expected level of operating profits?

• In 1993 Izzo made operating income of $ 12,000 on revenue of $ 1 million from selling 75, 000 straps. In 1994 Izzo expected to sell 92,000 straps for $1.7 million. 1. Suppose the variables costs per strap are $ 10. Compute total fixed and total variable costs for 1993. 2. Suppose the cost behavior in 1994 was the same as in 1993. Estimate Izzo's operating income for 1994 (a) with sales at the predicted 92,00 straps, (b) with unit sales 10% above the predicted level, and (c) with unit sales 10% below the predicted level. 3. Explain why the predicted 1994 operating income was so much greater than the 1993 operating income.

  Estimate Izzo's operating income for 1994 (a) with sales at the predicted 92,00 straps, (b) with unit sales 10% above the predicted level, and (c) with unit sales 10% below the predicted level. 3.

• Gattonside Gumbo Company

  Changes in the level of revenues and costs arise only because of changes in the number of product units produced and sold a.

• Seating Unlimited Inc: Olympic Lawn Chairs

  The firm has estimated unit sales, the sales, price, and variable costs for each state: Consumer interest Units sales Sales price per unit Variable cost per unit low 50,000 $6.25 $3.50 average

• Process-Focused Shop Effect of Switching to Repetitive Focus

  Using the process-focused method, profits are $24,000 B. Switching to the repetitive focus will reduce revenues. C. The total revenues expected under the repetitive focus shop are $32,000 D.

• Reasons for holding cash and the need for cash budgeting

  Sales are expected to be 900,000 units per year, at a price of $3 per unit. Fixed costs excluding depreciation are $300,000 per year, and variable costs are $1.80 per unit.

• Basics of Cost-Volume-Profit (CVP) Analysis

  The contribution margin is the excess of sales revenues over total variable costs. (In other words, the contribution margin is the amount generated by sales, after paying variable costs, to cover fixed costs and return profits.)

• CVP Analysis

  As mentioned previously, contribution margin contributes to fixed costs and to profits. Fixed costs would remain the same at different sales levels and so a higher contribution margin would result in higher profits.

• Accounting explanation - Fourth-quarter losses of automakers

  Automakers' revenues are based on factory output rather than retail sales by dealers, and last quarter's sales increases were from the bulging inventories at the end of the third quarter, rather than from models produced in the fourth quarter.