At a furniture factory, the average selling price of a table is $18, the average variable expense per table is $ 9,and the average fixed expense per month is $12,000. On average 2,000 tables are sold at each month. If salesincrease by 20%, by how much should net operating income increase? A. $ 7,200 B. $ 10,000 C. $ 8,000 D. $3,160

MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. The sales volume of a company is one million dollars per month. If the company spends ($350,000.) per month as fixed costs, and the variable costs are equal to ($0.5) of each dollar. To check sales, it is required: A - Determine the corresponding volume of production, the equilibrium cat? B - What is the effect of reducing variable costs by 25% on the net profit, if that increase was the result of updates in production lines that caused an increase in fixed costs by 10%. Note that sales volume will not change? C- What is the effect of reducing fixed costs by (10%) on the net profit, if that reduction is Will it cause an increase in variable costs by a similar percentage, knowing that the sales volume will not change?
If a business had sales of $4,369,000 and a margin of safety of 20%, the break-even point was a.$3,495,200 b.$873,800 c.$7,864,200 d.$5,242,800
A company’s forecasted sales are $300,000 and its sales at break-even are $180,000. Its margin of safety in dollars is a. $180,000. c. $480,000. e. $300,000. b. $120,000. d. $60,000.
25.
2. How many regular hours will someone need to work to earn $250 at $12.50/h? 3. Determine two equivalent fractions for 6/8. 4. 4 = 5. How much is 5% commission on $15 000 sales?
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If Sales are $2,000,000 and the Break Even point is $1,500,000. What is the Margin of Safety (ratio)? A. 33% B. 175% C. 25% D. 75%
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How many units would have to be sold each month to attain a profit of 51600? sales 608,000. Per unit 40 variable expenses 425600 per unit 28 contribition margin 182400 per unit 12 fixed expense 156,000 net operating income 26400
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and the average fixed expense per month is $12,000. On average 2,000 tables are sold at each month. If sale ncrease by 20%, by how much should net operating income increase? A. $ 7,200 B. $ 10,000 C. $ 8,000 D. S ,160