FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Data for Sylva Corporation are shown below:
|
|
Per Unit |
Percent of Sales |
|
Selling price |
$ 80 |
100% |
|
Variable expenses |
$ 52 |
65% |
|
Contribution margin |
$ 28 |
35% |
Fixed expenses are $76,000 per month and the company is selling 4,600 units per month.
- How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $10,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,000?
Problem 2
Haywood Products distributes a single product, a woven basket whose selling price is $12 per unit and whose variable expense is $11 per unit. The company’s monthly fixed expense is $2,200.
- Calculate the company’s break-even point in unit sales.
- Calculate the company’s break-even point in dollar sales.
Note: Do not round intermediate calculations.
Problem 3
Lin Corporation has a single product whose selling price is $134 per unit and whose variable expense is $67 per unit. The company’s monthly fixed expense is $32,100.
- Calculate the unit sales needed to attain a target profit of $4,750. (Note: Do not round intermediate calculations.)
- Calculate the dollar sales needed to attain a target profit of $9,000.(Note: Round your intermediate calculations to the nearest whole number.)
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