Question

# Grapple Inc. currently has a contribution margin of\$19on its only product and sells45,000units. Grapple Inc. is...

Grapple Inc. currently has a contribution margin of\$19on its only product and sells45,000units. Grapple Inc. is considering cutting its sales price by\$2to generate an increase in sales of9,000units. How will this change affect its operating​ income?

A.It will increase operating income by

\$90,000.

B.It will increase operating income by

\$63,000.

C.It will decrease operating income by

\$90,000.

D.It will decrease operating income by

\$63,000.

2.

The following information pertains to the Yellow Dog​ Corporation:

 Total Units for information given 5,000 Fixed Cost per Unit \$200 Selling Price per Unit \$300 Variable Costs per Unit \$175 Target Operating Income \$100,000

What is the breakeven in sales​ dollars? (Round any intermediary calculations and your final answer to the nearest whole​ number.)

A.\$2,400,000

B.\$1,714,286

C.\$240,000

D.2640000

Who Done It Mystery Theater sells tickets for dinner and a show for

\$55

each. The cost of providing dinner is

\$27

per ticket and the fixed cost of operating the theater is

\$110,000

per month. The company can accommodate

9,000

patrons each month. What is the contribution margin per​ patron?

A.\$0.51

B.\$27.00

C.\$28.00

D.1.96

 1 Revised contribution margin 918000 =(45000+9000)*(19-2) Less: Current contribution margin 855000 =45000*19 Operating income increase 63000 It will increase operating income by \$63,000. Option B is correct 2 Total fixed costs 1000000 =5000*200 Divide by Contribution margin per unit 125 =300-175 Break even point in units 8000 Breakeven in sales​ dollars 2400000 =8000*300 Option A is correct 3 Contribution margin per​ patron 28.00 =55-27 Option C is correct

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