Question

Price is $10 per unit, variable costs are $4 per unit, and fixed costs are $8...

Price is $10 per unit, variable costs are $4 per unit, and fixed costs are $8 per unit (at current sales volume). How much will the profit change in short term if sales volume is increase by 10 units? ( the new volume is in the relevant range) A. decrease by $20 B. increase by $20 C. increase by $60 D. increase by $100 E. not enough information

Show work please

Homework Answers

Answer #1

Hit the like button

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
#1 Zeke Company sells 23,800 units at $16 per unit. Variable costs are $8 per unit,...
#1 Zeke Company sells 23,800 units at $16 per unit. Variable costs are $8 per unit, and fixed costs are $37,400. The contribution margin ratio and the unit contribution margin are 50% and $8 per unit 2% and $16 per unit 50% and $16 per unit 2% and $8 per unit #2 Variable costs as a percentage of sales for Lemon Inc. are 63%, current sales are $502,000, and fixed costs are $186,000. How much will operating income change if...
28. Currently, you sell 1,000 units of product Z per month at a price of $40...
28. Currently, you sell 1,000 units of product Z per month at a price of $40 per unit. The variable costs are: direct materials $10/unit, direct labor $4/unit, and variable overhead $2/unit. Fixed costs are unknown. You are planning to increase the price to $50 per unit. You expect sales volume to decrease by 20% (from the original level of 1,000 units per month) after this price increase. How much will the profit change in the short term if you...
Given the following information: Selling Price (per unit): $10,000 Variable Costs (per unit): $7,000 Fixed Costs:...
Given the following information: Selling Price (per unit): $10,000 Variable Costs (per unit): $7,000 Fixed Costs: $200,000 Required Each of these are separate situations: What is the break-even point in total sales in dollars? How many units need to be sold to make a profit of $20,000? How many units need to be sold to make a profit of $20,000 if fixed costs increase from $200,000 to $250,000? How many units would they need to sell if they wanted to...
Spice Inc.'s unit selling price is $53, unit variable costs are $37, fixed costs are $106,000,...
Spice Inc.'s unit selling price is $53, unit variable costs are $37, fixed costs are $106,000, and current sales are 10,400 units. How much will operating income change if sales increase by 5,300 units?
Capital One produces a single product, which it sells for $8.00 per unit. Variable costs per...
Capital One produces a single product, which it sells for $8.00 per unit. Variable costs per unit equal $3.20. The company expects short-term fixed costs to be $7,200 for the coming month, at the projected sales level of 20,000 units. Management is considering several alternative actions designed to improve operating results. In conjunction with this, they have created a profit-planning (that is, a CVP) model, which can be used to evaluate different scenarios. Capital One's management believes that a 10%...
: The fixed costs are $30,000,000, the variable cost per unit is $4.50, and there is...
: The fixed costs are $30,000,000, the variable cost per unit is $4.50, and there is no expected change in the cost per unit for changes in unit volume. calculate the breakeven volume for GW at the current price of $19.99. Next, consider the relationship between price and break-even volume for GW: What happens to break-even volume when a $5 price increase is made? What about a $5 price decrease?
Fixed costs $200,000 20,000 units/year produced Selling price $30 Variable cost/unit $10 1. Should I invest...
Fixed costs $200,000 20,000 units/year produced Selling price $30 Variable cost/unit $10 1. Should I invest in a machine that will increase fixed operating costs by $20,000 to decrease VC/unit by $1 and increase sales by 1,000 units at $30 selling price? 2. What is the current operating breakeven? What is the proposed operating breakeven? Now Proposed Units Sales $ Sales COGS Gross Profit FC (oper. costs) EBIT Now Proposed Units Sales $ Sales COGS Gross Profit FC (oper. costs)...
Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO5-4] [The...
Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO5-4] [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 90 100 % Variable expenses 63 70 Contribution margin $ 27 30 % Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Exercise 5-5 Part 2 2-a. Refer to the original data. How much will...
In CVP analysis, the unit contribution margin is: Sales price per unit less cost of goods...
In CVP analysis, the unit contribution margin is: Sales price per unit less cost of goods sold per unit Sales price per unit less FC per unit Sales price per unit less total VC per unit Same as the CM Maroon Company’s CM ratio of 24%.  Total FC are $84,000.  What is Maroon’s B/E point in sales dollars? $20,160 $110,536 $240,000 $350,000       If a firm’s forecasted sales are $250,000 and its B/E sales are $190,000, the margin of safety in dollars is:...
A product sells for $30 per unit and has a variable costs of $17.75 per unit....
A product sells for $30 per unit and has a variable costs of $17.75 per unit. The fixed costs are $967,750. If the variable cost per unit or to decrease to $15.50 per unit, fixed costs increase to $1,145,500, and the selling price does not change, break even point in units would: A) equal 6000 B) Decrease by 25,742 C) Not change D) Increase by 25,742 E) increase by 5925
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT