hock Company manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 600 100 Variable costs 390 65 Unit contribution margin $ 210 35 Assume that Shock Company is currently selling 672 computer monitors per month and monthly fixed costs are $128,000. If an $20,160 increase in the advertising budget would increase monthly sales by $75,000, the new level of operating income (πB) for Shock Company would be: (Do not round intermediate calculations.) Multiple Choice $15,210. $17,210. $20,210. $19,210. $13,120

Vaughn Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 30%, standard tapered candles  55%, and large scented candles  15%. The contribution margin ratio of each candle type is shown below. Candle Type   Contribution Margin Ratio Birthday   20% Standard tapered   30% Large scented   50% If the company’s fixed costs are $ 406,500 per year, what is the dollar amount of each type of candle that must be sold to break even?     Birthday   Standard tapered   Large scented Total break-even point   $ enter a dollar amount   $ enter a dollar amount   $ enter a dollar amount

Data related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years, are as follows: Products Unit Selling Price Laptops $230 Tablets 420 The estimated fixed costs for the current year are $402,500. Unit Variable Cost $160 200 Why is it so different? The break-even point is heavily toward the product with the Sales Mix Required: 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year. units units 30% 2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year. Laptops: Tablets: units 70% 3. Assume that the sales mix was 70% laptops and 30% tablets. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. units in this scenario than in part (1) because the sales mix is weighted contribution margin per unit…

Tiktok Company distributes a lightweight lawn chair that sell for P150 per unit. Variable costs are P60 per unit, and fixed costs total P1,800,000 annually. Assume the company sold 28,000 units last year. The sales manager is convinced that a 10% reduction in selling price, combined with a P700,000 increase in advertising expenditures, would cause annual sales in units to increase by 50%. REQUIRED: 1. Prepare two contribution margin income statements, one showing the results of last year's operations and one showing what the results of operations would be if these changes were made. 2. Would you recommend that the company do as the sales manager suggests? Why?

Benson Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 percent markup on total cost. Based on annual production costs for 10,000 units of product, computations for the sales price per clock follow. Unit-level costs $150,000 50,000 200,000 50,000 $250,000 Fixed costs Total cost (a) Markup (a x 0.25) Total sales (b) Sales price per unit (b ÷ 10,000) 25 Required a. Benson has excess capacity and receives a special order for 7,000 clocks for $21 each. Calculate the contribution margin per unit. Based on this, should Benson accept the special order? b. Prepare a contribution margin income statement for the special order. Complete this question by entering your answers in the tabs below. Required A Required B Benson has excess capacity and receives a special order for 7,000 clocks for $21 each. Calculate the contribution margin per unit. Based on this, should Benson accept the special order? Contribution margin per unit Should Benson accept the…

Best Windows is a small company that installs windows. Its cost structure is as follows: Selling price from each window installation $ Variable cost of each window installation Annual fixed costs Tax rate 450 $ 250 $ 175,000 40% Calculate the number of windows Best Windows must install and the revenues needed to earn a target net income of $72,000. *** Finally, calculate the revenues needed to earn a target net income or $72,000. Select the formula labels, then enter the amounts and calculate the revenues needed. Revenue required to achieve tarnet