onLast year, Terrific Copying had total revenue of $475 000, whileoperating at 60% of capacity. The total of its variable cost is $150000. Fixed costs were $180 000. If the current selling price, variablecosts, and fixed costs are the same as last year, what net income canbe expected from revenue of $500 000 in the current yearSelect one:OA. $1 184 210OB. $346 260OC. $381 388O D. $394 737OE. $1 418 216

Income earned from the business or services after deducting the variable cost, fixed cost and…

Answered: Last year, Terrific Copying had total…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. The total of its variable cost is $150 000. Fixed costs were $180 000. If the current selling price, variable costs, and fixed costs are the same as last year, what net income can be expected from revenue of $500 000 in the current year Select one: A. $1 184 210 B. $346 260 C. $394 737 D. $1 418 216 E. $381 388
Alfa Company manufactures and sells a single product. The Corfpany's sales (20 UNITS SOLD) and expenses for last month follow:TOTALSales€300Less variable expenses 180Contribution margin 120Less fixed expenses 80Net profit 40RequiredA) Calculate the degree of operating leverage at the current level of salesB) Next month sales are expected to increase by 25%. By what percentage will net profit increase AND what will the actual netprofit be?
Crane reported the following results from the sale of 5000 units in May: sales $300000, variable costs $165000, fixed costs $65000, and net income $70000. Assume that Crane increases its selling price by 5% on June 1. How many units will have to be sold in June to maintain the same level of net income? O 4500. 4725. 4750. O 5000.
ABC Company manufactures the product XE-17. The product is sold at a unit price of $70.Variable expenses are $13.50 per unit and fixed expenses are $220,000 per year.Required :a. What should be the product’s CM ratio? b. Calculate the BEP is sales dollars and in units for ABC Company. c. The manager of ABC company estimates that in the coming year, the company’s sales willincrease by $80,000 (from the current sales). How much should the net profit / loss increase/decrease if the fixed costs remain constant? d. The manager of ABC company predicts that by spending an additional $80,000 per year onadvertising and using higher quality raw material (which will in turn increase the raw materialcost per unit by $3), and increasing selling price per unit by 2% (to compensate for theincreased costs), unit sales will increase by two- thirds of the current sales units. Should thecompany go with the manager’s proposed plan? Explain your answer. (Assume that in thecurrent year, the company sold…
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ABC Company manufactures the product XE-17. The product is sold at a unit price of $70.Variable expenses are $13.50 per unit and fixed expenses are $220,000 per year.Required :a. What should be the product’s CM ratio? b. Calculate the BEP is sales dollars and in units for ABC Company. c. The manager of ABC company estimates that in the coming year, the company’s sales willincrease by $80,000 (from the current sales). How much should the net profit / loss increase/decrease if the fixed costs remain constant? d. The manager of ABC company predicts that by spending an additional $80,000 per year onadvertising and using higher quality raw material (which will in turn increase the raw materialcost per unit by $3), and increasing selling price per unit by 2% (to compensate for theincreased costs), unit sales will increase by two- thirds of the current sales units. Should thecompany go with the manager’s proposed plan? Explain your answer. (Assume that in thecurrent year, the company sold…
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A company that manufactures monitors has fixed costs of $82,000 per annum. The variable costs are 30% of sales and the profit is $63,000. When the selling price was reduced by 10%, the sales volume increased by 25%. a. What was the original sales revenue? Round to the nearest cent b. What were the original variable costs? -> SAVE PROGRESS SUBMITA

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