Wiles Inc.'s unit selling price is $40, the unit variable costs is $30, fixed costs are $80,000, and current sales are 10,000 units. How much would operating income change if sales increase by 4,000 units? a. $100,000 increase b. $40,000 increase c. $80,000 decrease d. $60,000 decrease

Wiles Inc.'s unit selling price is $40, the unit variable costs is $30, fixed costs are $80,000, and current sales are 10,000 units. How much would operating income change if sales increase by 4,000 units? a. $100,000 increase b. $40,000 increase c. $80,000 decrease d. $60,000 decrease

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: crease by 5,800 units? a. $81,200 increase b. $152,600 increase $54, the unit variable costs are…

A: Answer : Calculation of operating income change if sales volume increase by 5800 units : Operating…

Q: Below is information from Omicron Company's most recent income statement. Sales $500,000 300,000…

A: Net operating income means the sale price less variable cost which is contribution and then we…

Q: able costs are $4 per unit. How m if sales volume is increased by

A: Price per unit = $5 Variable cost = $4 Fixed cost per unit =$2 If sales volume increased by 10…

Q: The Sales are $98,000. The Variable Costs are $42,000. The Fixed Costs are $21,000. Calculate the…

A: If you have any questions let me know in comment box thankyou for your question.

Q: Spice Inc.'s unit selling price is $46, the unit variable costs are $31, fixed costs are $106,000,…

A: Values given in the question Unit selling Price = $46 Unit variable cost = $31 Contribution per…

Q: If fixed costs are $276,000, the unit selling price is $117, and the unit variable costs are $76,…

A: Given the following information: Question 1): Fixed costs: $276,000 Selling price per unit: $117…

Q: Question: A manufacturing company has a fixed cost of $120,000 and a variable cost per unit of $8.…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

Q: ed cost g term.

A: Answer : Contribution margin = Sales - Variable cost Contribution margin = $6000 - $4000 = $2000

Q: Spice Inc.'s unit selling price is $50, the unit variable costs are $36, fixed costs are $118,000,…

A: Operating Income A company's gross income, which is equal to total revenue less cost of products…

Q: Spice Inc.'s unit selling price is $53, the unit variable costs are $34, fixed costs are $101,000,…

A: Income statement is a financial statement that shows the profitability, total revenue and total…

Q: If total fixed cost of company increases from $250,000 to $300,000, variable cost remainsunchanged…

A: Break even point:— It is the point of production where total cost is equal to total revenue. At this…

Q: A company has provided the following data: Sales 5,000 units Sales price $100 per unit Variable cost…

A: The contribution Margin is calculated as difference between sales and variable cost. The net income…

Q: Milton Company's projected profit for the coming year is as follows: Description…

A: Break-even analysis is a technique used widely by the production management. It helps to determine…

Q: If fixed costs are $306,000, the unit selling price is $71, and the unit variable costs are $54,…

A: Break-even point refers to the point where the number of units sold is just sufficient to cover the…

Q: A company that produces cameras has fixed costs of $153,000 per annum. The variable costs are 45% of…

A: Profit is amount available after deduction of the fixed cost and variable cost from the sales and is…

Q: A company that manufactures monitors has fixed costs of $82,000 per annum. The variable costs are…

A: Sales revenue refers to the actual amount of income which is earned by a company or a corporation…

Q: Company XYZ is producing and selling 2,500. At this level, the selling price per unit is $10, the…

A: Profit: It can be defined as the excess of a company's sales revenue over the total costs incurred…

Q: Given the following information, what is the revenue break- even point? Selling price per unit…

A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…

Q: what is the break-even point in sales units if fixed costs are increased by $31,100? a.20,698 units…

A: Break Even Point in Units = Fixed Costs / Contribution Per Unit Current Fixed Cost = $1435000 New…

Q: Spice Inc.'s unit selling price is $47, unit variable costs are $32, fixed costs are $106,000, and…

A: Cost volume profit analysis is the technique used by management for decision-making. The methods…

Q: Spice Inc.'s unit selling price is $53, unit variable costs are $37, fixed costs are $119,000, and…

A: Income from operation :— It is the income earned from operating business. It is the difference of…

Q: Answer

Q: None

A: The formula to calculate this is:Operating Break-even Point = Fixed Costs/(1−Variable Cost Ratio)…

Q: Spice Inc.'s unit selling price is $49, unit variable costs are $39, fixed costs are $120,000, and…

A: Contribution margin: The difference between the sales and the variable costs is called the…

Q: Mazoon Company's variable costs are 75% of the selling price and its fixed costs are $80,000. To…

A: As per CVP equation, Contribution margin ratio = 1 - variable cost ratio Fixed costs + Profits =…

Q: b) he Cape Cod Cotton Candy Company had the following information available regarding last year's…

A: Variable cost per unit :— It is the variable cost divided by number of units. Contribution margin…

Q: Data for Hermann Corporation are snown below: Percent Per Unit of Sales $ 65 100% 39 60 $26 40%…

A: CVP analysis, or cost-volume-profit analysis, is a management accounting technique used to analyze…

Q: What would be the expected change in profit?

A: "Contribution Margin: The Contribution Margin is also can be treated on a gross or per unit basis.…

Q: Assume the following information: Sales Variable expenses Contribution margin Fixed expenses Net…

A: Cost volume profit analysis is the technique used by management for decision-making. The methods…

Q: Variable costs as a percentage of sales for Lemon Inc. are 66%, current sales are $534,000, and…

A: In CVP analysis, operating income is a key metric because it helps businesses determine the level of…

Q: Philip Inc. has provided the following data: Data Table Accounts Amounts Sales per unit $120…

A: The objective of the question is to determine the change in operating income if sales increase by…

Q: Variable costs as a percentage of sales for Lemon Inc. are 73%, current sales are $647,000, and…

A: Increase in operating income = ( Increase in sales * Contribution margin ratio ) - Increase in fixed…

Q: If fixed costs are $1,214,000, the unit selling price is $204, and the unit variable costs are $109,…

A: Break-even sales (units) = Total fixed costs / Contribution margin per unit Contribution margin per…

Q: Philip Inc. has provided the following sales and cost data: Sales and Costs Data Sales and Costs…

A: The objective of the question is to determine the change in operating income if sales increase by…

Q: Revenue from product X is $4,000. Total variable costs for product X are $2,500. The allocated fixed…

A: If a product is dropped then revenue from the product is lost, variable costs are saved and…

Q: Sales volume for a company is million dollars per month. If the company spends $350,000 per month as…

A: The break-even point: The break-even sales or point refers to the level of sales where the…

Q: Ajani Company has variable costs equal to 40% of sales. The company is considering a proposal that…

A: Variable costs on increased sales = Increase in sales x 40% = $10,000 x 40% = $4,000

Q: Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable…

A: The measurement of net operating income (NOI) is used to assess the viability of income-generating…

Q: Sales revenue from product X is $9,000, variable costs are $6,000, and allocated fixed costs are…

A: Change in profit = New profit - Old profit Fixed cost doesn't change even if the product X is…

Q: If fixed costs are $288,000, the unit selling price is $35, and the unit variable costs are $15,…

A: Break-even analysis is the easiest form of cost-volume-profit analysis. Break-even analysis is used…

Q: provide the answer pls.

A: Step 1: Introduction to Contribution Margin:The contribution margin is the excess of sales revenue…

Q: fixed costs are $283,000, the unit selling price is $72, and the unit variable costs are $51, what…

A: Break Even Point is a point where there is no profit or loss. Break Even Sales = Fixed Cost /…

Q: Variable costs as a percentage of sales for Lemon Inc. are 64%, current sales are $691,000, and…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Question

$100,000 increase

$40,000 increase

$80,000 decrease

$60,000 decrease

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Understanding of contribution margin

VIEW

Step 2: Calculation of change in net operating income

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Variable costs as a percentage of sales for Lemon Inc. are 77%, current sales are $601,000, and fixed costs are $202,000. How much will operating income change if sales increase by $36,800? a.$8,464 increase b.$28,336 decrease c.$28,336 increase d.$8,464 decrease
Help me solve the requirement below
1. The sales volume of a company is one million dollars per month. If the company spends ($350,000.) per month as fixed costs, and the variable costs are equal to ($0.5) of each dollar. To check sales, it is required: A - Determine the corresponding volume of production, the equilibrium cat? B - What is the effect of reducing variable costs by 25% on the net profit, if that increase was the result of updates in production lines that caused an increase in fixed costs by 10%. Note that sales volume will not change? C- What is the effect of reducing fixed costs by (10%) on the net profit, if that reduction is Will it cause an increase in variable costs by a similar percentage, knowing that the sales volume will not change?
Assume the following information: Amount Per Unit Sales $ 600,000 $ 40 Contribution margin $ 360,000 $ 24 Net operating income $ 240,000 If the selling price per unit increases by 8% and unit sales drop by 6%, then the best of estimate of the new net operating income is: Multiple Choice $263,520. $243,520. $253,520. $233,520.
The Biscuits Crunch Company had the following information available regarding last year's operations: Sales (100,000 units) Variable costs Contribution margin Fixed costs Net Income $200,000 100,000 100,000 50,000 50,000 If sales were to increase by 200 units, what would be the effect on net income? A) 400 increase B) 200 increase C) 100 increase D) 200 loss E) 150 increase
If fixed costs are $1,450,000, the unit selling price is $205, and the unit variable costs are $128, what are the break-even sales (units) if fixed costs are increased by $30,300? a. 28,837 units b. 23,070 units c. 19,225 units d. 15,380 units
If fixed costs are $1,300,000, the unit selling price is $208, and the unit variable costs are $105, what is the break-even point in sales units if fixed costs are increased by $42,600? a. 13,035 units b. 15,642 units c. 10,428 units d. 19,552 units
want the correct answer pls..
If fixed costs are $1,449,000, the unit selling price is $208, and the unit variable costs are $107, what is the break-even point in sales units if fixed costs are increased by $36,600? a. 14,709 units b. 22,063 units c. 11,767 units d. 17,651 units
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.
Company XYZ is producing and selling 2,500. At this level, the selling price per unit is $10, the variable expenses per unit is $6, and fixed expenses are $1,500. How much is the profit? а. $6,000 b. $8,500 С. $11,000 d. $16,000 е. $13,500
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)