Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 3, Problem 4MC
A company’s contribution margin per unit is $25. It the company increases its activity level from 200 units to 350 units, how much will its total contribution margin increase?
A. $1,250
B. $3,750
C. $5.000
D. $8,750
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
A company's contribution margin per unit is $25. It the company increases its activity level from 200 units to
350 units, how much will its total contribution margin increase?
A. $1,250
B. $3,750
C. $5.000
D. $8,750
A company’s only product sells for $150 per unit. Its variable costs per unit are $100, and its fixed costs total $75,000. What is its contribution margin per unit? a. $50 c. $100 e. $25 b. $250 d. $150
A company’s contribution margin per unit is $25. If the company increases its activity level from 200 units to 350 units, how much will its total contribution margin increase?A. $1,250B. $3,750C. $5,000D. $8,750
Chapter 3 Solutions
Principles of Accounting Volume 2
Ch. 3 - The amount of a units sales price that helps to...Ch. 3 - A companys product sells for $150 and has variable...Ch. 3 - A companys product sells for $150 and has variable...Ch. 3 - A companys contribution margin per unit is $25. It...Ch. 3 - A company sells its products for $80 per unit and...Ch. 3 - If a company has fixed costs of $6.000 per month...Ch. 3 - Company A wants to earn $5,000 profit in the month...Ch. 3 - A company has wants to earn an income of $60,000...Ch. 3 - A company has pre-tax or operating income of...Ch. 3 - When sales price increases and all other variables...
Ch. 3 - When sales price decreases and all other variables...Ch. 3 - When variable costs increase and all other...Ch. 3 - When fixed costs decrease and all other variables...Ch. 3 - When fixed costs increase and all other variables...Ch. 3 - If the sales mix in a multi-product environment...Ch. 3 - Break-even for a multiple product firm. can be...Ch. 3 - Waskowski Company sells three products (A. B. and...Ch. 3 - Beaucheau Farms sells three products (E, F, and G)...Ch. 3 - A company sells two products, Model 101 and Model...Ch. 3 - Wallace Industries has total contribution margin...Ch. 3 - Macom Manufacturing has total contribution margin...Ch. 3 - If a firm has a contribution margin of $59,690 and...Ch. 3 - If a firm has a contribution margin of $78M90 and...Ch. 3 - Define and explain contribution margin on a per...Ch. 3 - Define and explain contribution margin ratio.Ch. 3 - Explain how a contribution margin income statement...Ch. 3 - In a cost-volume-profit analysis, explain what...Ch. 3 - What is meant by a products contribution margin...Ch. 3 - Explain how a manager can use CVP analysis to make...Ch. 3 - After conducting a CVP analysis, most businesses...Ch. 3 - Explain how for is possible for costs to change...Ch. 3 - Explain what a sales mix is and how changes in the...Ch. 3 - Explain how break-even analysis for a...Ch. 3 - Explain margin of safety and why it is an...Ch. 3 - Define operating leverage and explain its...Ch. 3 - Calculate the per-unit contribution margin of a...Ch. 3 - Calculate the per-unit contribution margin of a...Ch. 3 - A product has a sales price of $150 and a per-unit...Ch. 3 - A product has a sales price of $250 and a per-unit...Ch. 3 - Maple Enterprises sells a single product with a...Ch. 3 - Marlin Motors sells a single product with a...Ch. 3 - Flanders Manufacturing is considering purchasing a...Ch. 3 - Marchete Company produces a single product. They...Ch. 3 - Brahma Industries sells vinyl replacement windows...Ch. 3 - Salvador Manufacturing builds and sells...Ch. 3 - Salvador Manufacturing builds and sells...Ch. 3 - Use the information from the previous exercises...Ch. 3 - Company A has current sales of $10,000,000 and a...Ch. 3 - Marshall s target margin of safety be in units and...Ch. 3 - Calculate the per-unit contribution margin of a...Ch. 3 - Calculate the per-unit contribution margin of a...Ch. 3 - A product has a sales price of $175 and a per-unit...Ch. 3 - A product has a sales price of $90 and a per-unit...Ch. 3 - Cadre, Inc., sells a single product with a selling...Ch. 3 - Kerr Manufacturing sells a single product with a...Ch. 3 - Delta Co. sells a product for $150 per unit. The...Ch. 3 - Shonda & Shonda is a company that does land...Ch. 3 - Baghdad Company produces a single product. They...Ch. 3 - Keleher Industries manufactures pet doors and...Ch. 3 - Manufacturing builds and sells switch harnesses...Ch. 3 - Manufacturing builds and sells switch harnesses...Ch. 3 - Use the information from the previous exercises...Ch. 3 - Company A has current sales of $4,000,000 and a...Ch. 3 - Best Wholesale recently calculated their...Ch. 3 - A company sells small motors as a component part...Ch. 3 - A company manufactures and sells racing bicycles...Ch. 3 - Fill in the missing amounts for the four...Ch. 3 - Markham Farms reports the following contribution...Ch. 3 - Kylies Cookies is considering the purchase of a...Ch. 3 - Morris Industries manufactures and sells three...Ch. 3 - Manatoah Manufacturing produces 3 models of window...Ch. 3 - Jakarta Company is a service firm with current...Ch. 3 - A company sells mulch by the cubic yard. Grade A...Ch. 3 - A company manufactures and sells blades that are...Ch. 3 - Fill in the missing amounts for the four...Ch. 3 - West Island distributes a single product. The...Ch. 3 - Wellington, Inc., reports the following...Ch. 3 - Karens Quilts is considering the purchase of a new...Ch. 3 - Abilene Industries manufactures and sells three...Ch. 3 - Tim-Buck-Il rents jet skis at a beach resort....Ch. 3 - Fire Company is a service firm with current...Ch. 3 - Mariana Manufacturing and Bellow Brothers compete...Ch. 3 - Roald is the sales manager for a small regional...Ch. 3 - As a manager, you have to choose between two...Ch. 3 - Coutures Creations is considering offering Joe, an...
Additional Business Textbook Solutions
Find more solutions based on key concepts
(Record inventory transactions in the periodic system) Wexton Technologies began the year with inventory of 560...
Financial Accounting (11th Edition)
Which type of adjustment occurs when cash is not collected or paid, but the related income or expense is report...
Principles of Accounting Volume 1
E8-16 Understanding internal control, components, procedures, and laws
Learning Objectives 1, 2, 3
Match ...
Horngren's Accounting (11th Edition)
Present Value of an Ordinary Annuity, Present Value of an Annuity Due, Lease Payments. Carfly Barbers decides t...
Intermediate Accounting (2nd Edition)
E8-13 Identifying internal controls
Learning Objective 1
Consider each situation separately. Identify the missi...
Horngren's Accounting (12th Edition)
Methods of joint-cost allocation, comprehensive. Kardash Cosmetics purchases flowers in bulk and processes them...
Cost Accounting (15th Edition)
Knowledge Booster
Similar questions
- If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000arrow_forwardIf a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 В. 180 C. 200 D. 2,000arrow_forwardABC has a per unit contribution margin of $110. If sales increase by 60 units fixed costs increase by $9,000, determine what will happen to the net income. a. decrease by $6,600b. decrease by $2,400 c. increase by $6,600d. increase by $2,400arrow_forward
- 8. A company has return on sales of 20%, income of $50,000, selling price of $10, and a contribution margin of 40%.A. What are fixed costs?B. What are variable costs per units?C. What are sales in units?D. What are sales in dollars? *arrow_forwardA company's product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin ratio? A.10% B.40% C. 60% D. 90%arrow_forwardTo manufacture 15 000 units the total variable cost is 48,000. the fixed costs total is 27,000. If the company wants to make 40,000 profit, how much should the company sell the items for? a. $7.67 b. $2.33 c. $8.93 d. $5.00arrow_forward
- A company has return on sales of 20%, income of $50,000, selling price of $10, and a contribution margin of 40% . A. What are fixed costs? Why? How? B. What are variable costs per units? Why? How? C. What are sales in units? D. What are sales in dollars? Why? How?arrow_forwardCompany XYZ is producing and selling 2,500. At this level, the selling price per unit is $10, the variable expenses per unit is $5, and fixed expenses are $1,500.How much is the profit? O a. $6,000 O b. $8,500 Oc. $11,00O O d. $13,500 O e. $16,000 Company XYZ is currently operating with a 65% contribution margin. The company is planning an upgrade in its production facilities, which is expected to increase sales by $10,000. However, this upgrade is expected to increase fixed costs of $2,500. What would be the expected change in profit? Increase hv $1000 qu.edu.om/mod/quiz/attempt.php?attempt=1893260&cmid%-891193&page=10#question-2134787-26 F1 F3 F5 F7 F8 F9 F10 @ %23 & * 1 2 3 4 7 V E R T Y G YH K 1. I C{V} B YNIM 24 S * 00 ם אarrow_forwardIf the contribution margin on the firm's single product is $2.00 per unit and fixed costs are $60.000, what will the firm's net income be at sales of 30.000 units? Mutiple Choice O O $90.000 $30,000 $15.000 9arrow_forward
- Consider the following information from the income statement of Leighton Company: Contribution margin ratio 40% Fixed expenses $140,000 Selling price $100 Target profit $120,000 Unit contribution margin $40 What are the sales dollars required to attain a target profit of $120,000? multiple choice A. $60,000 B. $400,000 C. $10,000 D. $300,000arrow_forwardA company sells their product for $300 per unit and has fixed costs of $60,000 per month. If they must sell 1,000 units a month in order to break even, how much is their contribution margin ratio? a. 0.50% b. 20% c. $60 d. Cannot determinedarrow_forwardA product sells for $400 per unit and its variable costs per unit are $260. The company’s fixed costs are $840,000. If the company desires $70,000 pretax income, what is the required dollar sales? a. $2,400,000 c. $2,600,000 e. $1,400,000 b. $200,000 d. $2,275,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College