Homework Answers
Current position
Selling price per unit = $90
Variable cost per unit = $45
Fixed costs = $83,000
Sales = 2,900 units
Profit = Sales - Variable cost - Fixed costs
= ( 2,900 x 90) - ( 2,900 x 45) - 83,000
= 261,000-130,500-83,000
= $47,500
Proposed Position
Selling price per unit = 90- 90 x 12%
= 90-10.80
= $79.20
sales = 2,900+2,900 x 12%
= 2,900+348
= 3,248 units
Profit = Sales - Variable cost - Fixed costs
= (3,248 x 79.20) - (3,248 x 45) - 83,000
= 257,242-146,160-83,000
= 28,082
Operating income will decreased by = Current position - ProposedPosition
= 47,500-28,082
= $19,418
Second option is correct option.
Kindly comment if you need further assistance. Thanks‼!
Add Answer to:
Tony Manufacturing produces a single product that sells for $90. Variable costs per unit equal $45....
9. Tony Manufacturing produces a single product that sells for $80. Variable costs per unit equal...
9. Tony Manufacturing produces a single product that sells for $80. Variable costs per unit equal $30. The company expects total fixed costs to be $78,000 for the next month at the projected sales level of 2,500 units. Suppose that management believes that a 10% reduction in the selling price will result in a 10% increase in sales. If this proposed reduction in selling price is implemented: A) operating income will decrease by $9,500 B) operating income will increase by...
Tony Manufacturing produces a single product that sells for $80. Variable costs per unit equal $45....
Tony Manufacturing produces a single product that sells for $80. Variable costs per unit equal $45. The company expects total fixed costs to be $80,000 for the next month at the projected sales level of 2500 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately.Suppose management believes that a $90,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must increase...
Tony Manufacturing produces a single product that sells for $110. Variable costs per unit equal $40....
Tony Manufacturing produces a single product that sells for $110. Variable costs per unit equal $40. The company expects total fixed costs to be $82,000 for the next month at the projected sales level of 3000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. Suppose management believes that a $80,000 increase in the monthly advertising expense will result in a considerable increase in sales, Sales must...
Stones Manufacturing, sells a marble slab for $1500. Fixed costs are $31,000, while the variable costs...
Stones Manufacturing, sells a marble slab for $1500. Fixed costs
are $31,000, while the variable costs are $450 per slab. The
company currently plans to sell 240 slabs this month. What is the
margin of safety assuming 75 slabs are budgeted?
$207,714.286
$31,000
$68,214.2857
$315,714.286
Answer the following questions using the information
below:
Southwestern College is planning to hold a fund raising banquet at
one of the local country clubs. It has two options for the
banquet:
Southwestern College has...
Tony Manufacturing produces a single product that sells for $110. Variable costs per unit equal $40. The company ex...
Tony Manufacturing produces a single product that sells for $110. Variable costs per unit equal $40. The company expects total fixed costs to be $82,000 for the next month at the projected sales level of 3000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately Suppose management believes that a $80,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must...
Martha Manufacturing produces a single product that sells for $90per unit. Variable costs per unit equal...
Martha Manufacturing produces a single product that sells for $90per unit. Variable costs per unit equal $50. The company currently has total fixed costs of $72,000. Under the current cost and revenue structure Martha Manufacturing expects to sell 4,000 units. To improve short-term performance, management is considering a number of alternative actions. Evaluate each of the situations given below independently. Assume that, other than the information provided under the alternative actions, no other factors will change the revenue or cost...
Craylon Manufacturing produces a single product that sells for $100. Variable costs per unit equal $25....
Craylon Manufacturing produces a single product that sells for $100. Variable costs per unit equal $25. The company expects total fixed costs to be $70,000 for the next month at the projected sales level of 1,400 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. One alternative is to increase advertsing expenses by $12,000. What is the effect on operating income with the increase of advertising expenses?...
Craylon Manufacturing produces a single product that sells for $110. Variable costs per unit equal $30....
Craylon Manufacturing produces a single product that sells for $110. Variable costs per unit equal $30. The company expects total fixed costs to be $65,000 for the next month at the projected sales level of 1,300 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. One alternative is to increase advertsing expenses by $10,000. What is the effect on operating income with the increase of advertising expenses?...
Tony Manufacturing produces a single product that sells for $80
Tony Manufacturing produces a single product that sells for $80. Variable costs per unit equal $45. The company expects total fixed costs to be 580,000 for the next month at the projected sales level of 2500 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately Suppose management believes that a $90,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must...
Craylon Manufacturing produces a single product that sells for $120. Variable costs per unit equal $28....
Craylon Manufacturing produces a single product that sells for $120. Variable costs per unit equal $28. The company expects total fixed costs to be $60,000 for the next month at the projected sales level of 1,000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. Suppose that management believes that a $14,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales...
Tony Manufacturing produces a single product that sells for $80. Variable costs per unit equal $45. The company expects total fixed costs to be $80,000 for the next month at the projected sales level of 2500 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately.Suppose management believes that a $90,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must increase...
Tony Manufacturing produces a single product that sells for $110. Variable costs per unit equal $40. The company expects total fixed costs to be $82,000 for the next month at the projected sales level of 3000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. Suppose management believes that a $80,000 increase in the monthly advertising expense will result in a considerable increase in sales, Sales must...
Stones Manufacturing, sells a marble slab for $1500. Fixed costs
are $31,000, while the variable costs are $450 per slab. The
company currently plans to sell 240 slabs this month. What is the
margin of safety assuming 75 slabs are budgeted?
$207,714.286
$31,000
$68,214.2857
$315,714.286
Answer the following questions using the information
below:
Southwestern College is planning to hold a fund raising banquet at
one of the local country clubs. It has two options for the
banquet:
Southwestern College has...
Tony Manufacturing produces a single product that sells for $110. Variable costs per unit equal $40. The company expects total fixed costs to be $82,000 for the next month at the projected sales level of 3000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately Suppose management believes that a $80,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must...
Craylon Manufacturing produces a single product that sells for $110. Variable costs per unit equal $30. The company expects total fixed costs to be $65,000 for the next month at the projected sales level of 1,300 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. One alternative is to increase advertsing expenses by $10,000. What is the effect on operating income with the increase of advertising expenses?...
Craylon Manufacturing produces a single product that sells for $120. Variable costs per unit equal $28. The company expects total fixed costs to be $60,000 for the next month at the projected sales level of 1,000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. Suppose that management believes that a $14,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales...
Most questions answered within 3 hours.
-
Consider the following regular
expression: (a*bc+d*e)*
Transform this regular expression to an NFA, from
there to...
asked 44 seconds ago -
4. What are the two possible products of the
intramolecular hemiacetal formation of linear glucose?
5. ...
asked 1 minute ago -
1. The Janjua Company had the following account balances at
1/1/16: Common Stock $50,000 Treasury Stock...
asked 2 minutes ago -
The opportunity cost of attending university is likely to
include all except which of the following?...
asked 4 minutes ago -
A solution with maximum solute that can dissolve and remain
stable is
saturated
unsaturated
miscible
supersaturated
asked 6 minutes ago -
Describe how you would make 100ml of a 10mmol glucose
standard
asked 7 minutes ago -
Zahn Corp.'s comparative balance sheet at December 31, 20x5 and
20x4, reported accumulated depreciation balances of...
asked 7 minutes ago -
How many milliliters of 5.6 M NaOH are needed to neutralize 3.9
mL of a 6.6...
asked 19 minutes ago -
Will dislike
if you don't code efficiently, you must have knowledge of
next.js,vue.js,immutable.js,react,js.
Develop an api...
asked 24 minutes ago -
When financial statements are converted to percentages, they are
referred to as:
A. Percent of change...
asked 25 minutes ago -
16) Which of the following is not a way to reduce the
government's budget
deficit
A)...
asked 51 minutes ago -
At some time, a charged particle with q = −1.24×10−8C is moving
with instantaneous velocity v...
asked 1 hour ago