Zeta Corp's most recent income statement is given below. Sales (8,000 units) Less variable expenses Contribution margin Less fixed expenses $160,000 (68.000) 92,000 (50,000) $ 42,000 Net income Required: a. Contribution margin % per unit is b. If sales are doubled to $240,000, total variable costs will equal c. If sales are doubled to $240,000, total fixed costs will equal d. If 20 more units are sold, profits will increase to

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What is the contribution margin per unit?

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Skeeter Systems uses the following data in its Cost-Volume-Profit analyses: Sales Variable expenses Contribution margin Fixed expenses Net operating income O $80,000 What is total contribution margin if sales volume increases by 20%? O $158,400 O $200,000 Total $ 400,000 280,000 120,000 100,000 O $144,000 $ 20,000

CMR, BEP, sensitivity analysis. Wild's Company's income statement is shown below Per Unit P 5.00 3.00 P 2.00 Sales (30,000 units) Less: Variable costs Contribution margin Less: Fixed expenses Net Income Total P 150,000 90,000 60,000 50,000 P 10,000 Required: 1. Compute the contribution margin ratio, breakeven point in pesos, and operating income. 2. Calculate the new contribution margin ratio, breakeven point in pesos and operating profit under each of the changes below: a. Unit sales price increase by 15% b. Unit variable costs decrease by 25% c. Total fixed costs increase to P80,000 d. Unit sales price decreases by 20% and the sales volume increases by 20% e. The selling price increases by P 0,50 per unit, fixed costs increase by P10,000, and the sales volume decreases by 5% f. Variable costs increase by PO.20 per unit, the selling price increases by 12%, and the sales volume decreases by 10%

Assume the following information: \table[[,Amount,Per Unit],[Sales,$300,000,$40

Assume the following (1) variable expenses = $294,000, (2) unit sales = 10,000, (3) the contribution margin rotio =25%, ond (4) net operoting income S10,000. Given these four assumptions, which of the following is true? Multiple Cholce The break-even polnt In sales dollars Is $352,000 The total contributlon margin = $220,500 The total sales 5367500 The total fixed expenses= $73,500

For a certain company, the cost function for producing x items is C(x)=40x+200, and the revenue function for selling x items in R(x)=−0.5(x−80)2+3,200. The maximum capacity of the company is 110 items. The profit function P(x) is the revenue function R(x) (how much it takes in) minus the cost function C(x) (how much it spends). In economic models, one typically assumes that a company wants to maximize its profit, or at least make a profit!Assuming that the company sells all that it produces, what is the profit function?P(x)= Preview Change entry mode . Hint: Profit = Revenue - Cost as we examined in Discussion 3. What is the domain of P(x)?Hint: Does calculating P(x) make sense when x=−10 or x=1,000? The company can choose to produce either 40 or 50 items. What is their profit for each case, and which level of production should they choose?Profit when producing 40 items = Number Profit when producing 50 items = Number Can you explain, from our model, why the company makes less profit…

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