sales = 950,000, variable costs = 450,000, and fixed costs = 310,000. if an addition is offered to a company which is estimated by the sales manager to increase sales by a maximum of $750,000, and the company’s accountants have determined that the proposed addition will add $320,000 to fixed costs each year and variable costs are expected to be at the same percentage as they currently are before the proposed addition, why is the current fixed costs of 310,000 a sunk cost while the addition's fixed cost of 320,000 is an out-of-pocket cost?

Blossom Company is considering two alternatives. Alternative A will have revenues of $145,100 and costs of $104,800. Alternative B will have revenues of $184,300 and costs of $121,900. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Alternative A $ 145100 Revenues Costs Net Income 104800 40300 Alternative B Vis better than Alternative A Alternative B Net Income Increase (Decrease) 184300 $ 39200 i 121900 62400 17100 22100

Using the following data, estimate the new Return on Investment if there is a 11% decrease in the average operating assets - with the new average operating assets as the base. Sales $2,565,862 Contribution margin 48% Controllable fixed costs 293,294 Average operating assets $4,671,197 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.

If total fixed cost of company increases from $250,000 to $300,000, variable cost remainsunchanged at $2 per unit, and selling price increases from $10 to $11.50. How the above changes will affect break-even point in units? A)The break-even point in units will decrease.   B)None of the other. C)The break-even point in units will increase. D)The break-even point in units will remain same.

A company has three product lines, one of which reflects the following results: Sales Variable expenses Contribution margin Fixed expenses Net loss O decrease by $4000. O increase by $4000 decrease by $82000 $181000 99000 O increase by $48000 82000 130000 If this product line is eliminated, 60% of the fixed expenses can 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 $ (48000)

What is the reduction in Variable manufacturing cost

N5.