Question

1. Assume the following (1) selling price per unit = $30, (2) variable expense per unit = $18, and (3) total fixed expenses = $30,300. Given these three assumptions, the unit sales needed to break-even is:

2. Assume the following information:

Amount | Per Unit | |||||||||

Sales | $ | 300,000 | $ | 40 | ||||||

Variable expenses | 112,500 | 15 | ||||||||

Contribution margin | 187,500 | $ | 25 | |||||||

Fixed expenses | 137,000 | |||||||||

Net operating income | $ | 50,500 | ||||||||

The unit sales to break-even is:

3.Assume the following information:

Amount | Per Unit | |||||||||

Sales | $ | 300,000 | $ | 40 | ||||||

Variable expenses | 112,500 | 15 | ||||||||

Contribution margin | 187,500 | $ | 25 | |||||||

Fixed expenses | 45,000 | |||||||||

Net operating income | $ | 142,500 | ||||||||

The unit sales to attain a target profit of $220,000 is:

Answer #1

7.
Assume the following information:
Amount
Per Unit
Sales
$
300,000
$
40
Variable expenses
112,500
15
Contribution margin
187,500
$
25
Fixed expenses
38,000
Net operating income
$
149,500
The dollar sales to break-even is:
Multiple Choice
$149,500.
$101,333.
$47,500.
$60,800.
12.
Assume the sales budget for April and May is 46,000 units and
48,000 units, respectively. The production budget for the same two
months is 43,000 units and 44,000 units, respectively. Each unit of
finished goods...

Assume the following information:
Amount
Per Unit
Sales
$
300,000
$
40
Variable expenses
120,000
16
Contribution margin
180,000
$
24
Fixed expenses
60,000
Net operating income
$
120,000
The margin of safety percentage is closest to:

Unit sales 20,000 units
Selling price per unit $60 per unit
Variable expenses per unit $45 per unit
Fixed expenses $240,000
CVP Relationships Compute the CM ratio
Selling price per unit Variable expenses per unit =
Contribution margin per unit =
CM ratio =
Compute the break-even
Break-even in unit sales=
Break-even in dollar sales=
Compute the margin of safety
Margin of safety in dollars=
Margin of safety percentage=

Steven Company has fixed costs of $289,518. The unit selling
price, variable cost per unit, and contribution margin per unit for
the company's two products are provided below.
Product
Selling Price per Unit
Variable Cost per Unit
Contribution Margin per Unit
X
$848
$318
$530
Y
645
345
300
The sales mix for Products X and Y is 60% and 40%, respectively.
Determine the break-even point in units of X and Y. Round
answers to the nearest whole number.
units...

Blanchard Company manufactures a single product that sells for
$110 per unit and whose total variable costs are $88 per unit. The
company’s annual fixed costs are $308,000.
(1) Prepare a contribution margin income statement for Blanchard
Company at the break-even point.
BLANCHARD COMPANY
Contribution Margin Income Statement (at Break-Even)
Amount
Percentage
of sales
Sales
Variable costs
Contribution margin
Fixed costs
Net income
Sales
Variable costs
Contribution margin
Fixed costs
Net income
%
Sales
Variable costs
Contribution margin
Fixed costs...

Total fixed cost = $66,000
Selling price per unit = $14
Variable costs per unit = $6
Net target income (after tax) = $52,000
Tax rate = 35%.
a)Calculate break even point in units
b) calculate the sales revenue (in dollars) required to achieve
the target income
c) calculate the difference in operating income when one extra
unit is sold
d) if fixed cost increased by 20%, what is the new unit
contribution margin required to maintain the same break-even...

A company sells 25,000 units for $60 each. Variable expenses per
unit are $35. Fixed expenses for the company are $220,000.
Provide the following information. Enter your answers in the
same order in which these appear.
Contribution margin per unit
Contribution margin ratio
Break-even in unit sales
Break-even in dollar sales
Margin of safety in dollars
Margin of safety percentage
Degree of operating leverage

XYZ company's sales $800000, unit variable cost $8, fixed
expense $100000, and number of units sold equals 80000.
Requirements (1-10):
Net operating income.
2. Contribution margin percentage.
3. Unit fixed cost.
4. Break-even point in unit sold.
5. Break-even point in total sales dollar.
6. Unit sales to attain the target profit 76000.
7. Margin of safety (Units).
8. Margin of safety (%).
9. Degree of operating leverage.
10.In original information, if the number of quantity sold
increase by 10%,...

Feather Friends, Inc., distributes a high-quality wooden
birdhouse that sells for $40 per unit. Variable expenses are $20.00
per unit, and fixed expenses total $200,000 per year. Its operating
results for last year were as follows:
Sales
$
1,080,000
Variable expenses
540,000
Contribution margin
540,000
Fixed expenses
200,000
Net operating income
$
340,000
Use the CM ratio to determine the break-even point in dollar
sales. If this year's sales increase by $47,000 and fixed expenses
do not change, how much...

1) Selling price per unit Is $60, variable cost per unit is $30
and fixed cost per unit is $20. When this company operates above
the break-even point, the sale of one more unit will increase net
incomes by $10
a) True
b) False
2) A company with sales of $100,000, the variable cost of
$70,000 and fixed cost of $50,000 will reach its break-even point
if sales are increased by $20,000
a) True
b) False

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