Cesar Company has three product lines: A, B and C. The information given below is available. Assume Cesar Company drops Product C. Cesar Company then doubles the production and sales of Product B without ?increasing fixed costs. What will happen to operating income Sales Variable costs Contribution margin Avoidable fixed costs Unavoidable fixed costs Product A S100,000 76,000 24,000 9,000 6.000 $9.000 Product B $90,000 48,000 42,000 18,000 9.000 $15.000 Product C $44,000 35,000 9,000 3,000 7.700 S(1,700) Operating income(loss) increase by $18,000 O increase by $15,000 () increase by $36,000 O increase by $24,000 increase by $42,000 ()

Cesar Company has three product lines: A, B and C. The information given below is available. Assume Cesar Company drops Product C. Cesar Company then doubles the production and sales of Product B without ?increasing fixed costs. What will happen to operating income Sales Variable costs Contribution margin Avoidable fixed costs Unavoidable fixed costs Product A S100,000 76,000 24,000 9,000 6.000 $9.000 Product B $90,000 48,000 42,000 18,000 9.000 $15.000 Product C $44,000 35,000 9,000 3,000 7.700 S(1,700) Operating income(loss) increase by $18,000 O increase by $15,000 () increase by $36,000 O increase by $24,000 increase by $42,000 ()

Name: Cesar Company has three product lines: A, B and C. The information gi
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Cesar Company has three product lines: A, B and C. The information givenbelow is available. Assume Cesar Company drops Product C. CesarCompany then doubles the production and sales of Product B without?increasing fixed costs. What will happen to ope

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Cesar Company has three product lines: A, B and C. The information given below is available. Assume Cesar Company drops Product C. Cesar Company then doubles the production and sales of Product B without ?increasing fixed costs. What will happen to operating income Product B Product C Sales Variable costs Contribution margin Avoidable fixed costs Unavoidable fixed costs Operating income(loss) Product A $100,000 76,000 24,000 9,000 6,000 $9.000 $90,000 48,000 42,000 18,000 9,000 $15.000 $44,000 35,000 9,000 3,000 7,700 S(1,700) increase by $42,000 O increase by $18,000 increase by $36,000 increase by $15,000 ) increase by $24,000
If Mazoon Company sells unit outputs below the breakeven point_ a. there will be a loss b. total sales revenue will be less than total fixed costs O c. None of the given answers O d. there will be an decrease in total fixed costs e. total sales revenue will be less than total variable costs rch hp 144 A 6. 8 9. G K
If XYZ Company sells unit outputs that exceed the breakeven point, a. there will be an increase in total fixed costs b. total sales revenue will exceed total variable costs total sales revenue will exceed total fixed costs dthere will be a profit e None of the given answers
Central Industries has three product lines: A, B, and C. The information given below is available. Central Industries is thinking about dropping Product C because it is reporting a loss. Assume Central Industries drops Product C ?and does not replace it. What will happen to operating income Sales Variable costs Contribution margin. Avoidable fixed costs Unavoidable fixed costs Operating income(loss) Product A $100,000 76.000 24,000 9,000 6.000 $9.000 Product B S90,000 48,000 42,000 18,000 9.000 $15.000 Product C $44,000 35,000 9,000 3,000 7.700 S(1.700) increase by $600 increase by S1,700 () decrease by S6,000 decrease by S9,000 ) increase by S2,400 ()
O d. Contribution margin - fixed expenses - profit = 0 O e. Sales - fixed expenses - variable expenses = 0 Holding other factors constant, a company's contribution margin per unit will increase with: a. All answers given are NOT correct. b. any decrease in the selling price per unit O c. any increase in variable cost per unit O d. increase in its total fixed costs e. any increase in quantity sold. PAGE NEXT PA COLL CET 0001 A
On the cost-volume-profit graph, the area between the total cost line and the sales line after the break-even point represents: O a. The contribution margin per unit O b. The profit area O c. The variable cost amount O d. The fixed cost amount O e. The loss area US PAGE NEXT PAGE nere to search O W 19:09 A O D a d) ENG 07-04-2021 hp prt sc delete home end & 9 + backspace num lock R T P home D F G H K enter レ pause ↑ shift 11 end alt ctrl
The total cost formula for a company can be modeled by TC = 12570+ 50x where x represents the number of items sold. A formula for the company's total income is modeled with TR 80x, where a represents the number of items sold. This company will breakeven when its total costs equal its total income. - How many items must this company sell to breakeven? Answer:
If Mazoon Company sells unit outputs that exceed the breakeven point there will be a profit .a O total sales revenue will exceed total variable costs b O None of the given answers .c O there will be an increase in total fixed costs .d O total sales revenue will exceed total fixed costs .e O
Cesar Company has three product lines: A, B and C. The information given below is available. Assume Cesar Company drops Product C. Cesar Company then doubles the production and sales of Product B without ?increasing fixed costs. What will happen to operating income Product C Product A $100,000 76,000 24,000 9,000 6,000 $9.000 Product B $90,000 48,000 42,000 18,000 9,000 $15.000 $44,000 35,000 9,000 3,000 7,700 S(1.700) Sales Variable costs Contribution margin Avoidable fixed costs Unavoidable fixed costs Operating income(loss) increase by $18,000 increase by $15,000 increase by $36,000 increase by $24,000 increase by $42,000 O O O O O
Before a company reaches the breakeven point Select one: O-a. The fixed cost 1s egual to zero O b. Total fixed costs are increasing Oc The total contribution margin is lower than totalfixed costs O d. The total contribution margin is negative Oe The contribution margin per unit is higher than the fixed costs per unit
Before a company reaches the breakeven point Select one: a. The variable cost is decreasing Ob. The total contribution margin is negative c. The total operating income is negative Od. The contribution margin per unit is higher than the fixed costs per unit Oe. The fixxed cost is equal to zero Ne 0000 llinn
Following information is related to Product X of Zempa Company: Current replacement cost Cost to distribute Historical cost Normal profit margin Selling price $230 $42 $215 $36 $245 If lower-of-cost-or-market rule (LCM Rule) is applied, then the value of Product X that would be reported in the balance sheet is: a. $215 b. $230 c. $203 d. $167