QUESTION 20 Total Per unit Sales Revenue (30,000 units) $750,000 $25 Variable Costs A $450,000 $15 Contribution Margin $300,000 Fixed Costs $150,000 Operating Income $150,000 Now assume that this company's selling price per unit and variable cost per unit stay the same while total fixed costs increases by $100,000 per year. This company's breakeven point will: O increase O decrease remain the same

QUESTION 20 Total Per unit Sales Revenue (30,000 units) $750,000 $25 Variable Costs A $450,000 $15 Contribution Margin $300,000 Fixed Costs $150,000 Operating Income $150,000 Now assume that this company's selling price per unit and variable cost per unit stay the same while total fixed costs increases by $100,000 per year. This company's breakeven point will: O increase O decrease remain the same

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4BE

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Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
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Current Attempt in Progress A company has three product lines, one of which has the following results: Sales Variable expenses Contribution margin Fixed expenses Net loss Save for Later esc If this product line is eliminated, 60% of the fixed expenses will be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will ! O increase by $35000. O increase by $15000. O decrease by $90000. O decrease by $15000. 1 $221000 Q 131000 A 90000 125000 $(35000) 2 W S #3 с E D $ 4 R % 5 G Search or type URL FL Attempts: 0 of 1 used MacBook Pro T 6 G Y & 7 H Submit Answer X 8 U 9
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Assume a company is considering adding a new product line with the following estimated cost and revenue data: Annual sales Selling price per unit Variable manufacturing costs per unit Variable selling costs per unit Incremental fixed manufacturing costs Incremental fixed selling costs Allocated common fixed administrative costs $ $ $ 6,000 units 190 140 15 $66,000 per year $42,000 per year $48,000 per year If the new product line is added, the company expects that it will increase the sales of complementary products, thereby generating $36,000 in incremental contribution margin from those products. What is the lowest selling price per unit that could be charged for the new product line and still allow the company to break-even?
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Company A sales Sales 100% Variable costs 33,000 Fixed Costs Net Income Company B Amount % of sales P110,000 30% Contibution Margin P 44,000 70% 66.000 30.000 P 14,000 100% 60% 40% 4 Amount P110,000 P 77,000 60,000 P 17,000 Assume Sales rise 10% in the next year,what will be the change in Company A's Income?(You answer should be in percentage) % of
QUESTION 19 Total Sales revenue (30,000 units) $750,000 Variable costs 450,000 Contribution margin 300,000 ? Fixed costs 150,000 Operating income $150,000 Now assume that this company's selling price per unit and variable cost per unit stay the same while total fixed costs increases by $100,000 per year. This company's breakeven point will: O increase O decrease O remain the same Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Pro * C # G ff. % )) & Per unit 25 15