5) Boxmpny has sales of $87.500 the break-even point and fixed costs are 35000 Assuming com...

Question

Question

5) Boxmpny has sales of $87.500 the break-even point and fixed costs are 35000 Assuming com behavior does not chand if increa

Answer 1

Answer #1

Contribution margin at Break even point =$35,000
Contribution margin ratio =$35,000 / $87,500 =40%
Revised Sales	$1,07,500
Contribution margin($107,500*40%)	$43,000
Fixed cost	$35,000
Revised operating Income	$8,000
So Option B is answer

Answer 2

Similar Homework Help Questions

A company has sales of $87,500 at the break-even point and fixed costs are $35,000. Assuming...

A company has sales of $87,500 at the break-even point and fixed costs are $35,000. Assuming cost behavior does not change if sales increase by $20,000 how much will operating income will increase by? Select one: A. $4,000.00 B. $12,000.00 C. $8,000.00 D. $20,000.00
At the break-even point of 2000 units, variable costs are $50000, and fixed costs are $35000....

At the break-even point of 2000 units, variable costs are $50000, and fixed costs are $35000. How much is the selling price per unit? $25.00 $17.50 $42.50 $7.50
1) At the break even point of 400 units, variable cost were $400 and fixed costs...

1) At the break even point of 400 units, variable cost were $400 and fixed costs were $200. how much will the 401st unit sold contribute to operating profit before income taxes? 2) Break even would not change if : a) sales price increases, b) fixed cost decrease, c) sales volume decrease, d) variable cost per unit increase 3) what is break even point in dollars? sales price: $100, variable cost per unit: $40, total fixed cost :$ 120,000 4)...

Which of the following statement is true? Increases in fixed costs increase the break-even point. Increases...

Which of the following statement is true? Increases in fixed costs increase the break-even point. Increases in the unit selling price decrease the break-even point. Increases in unit variable costs increase the break-even point. All of the above. Question 32 (2 points) The capital expenditures budget summarizes plans for acquiring fixed assets. True False
Determine the unit break-even point, assuming fixed costs are $30,000 per period, variable costs are $22.00...

Determine the unit break-even point, assuming fixed costs are $30,000 per period, variable costs are $22.00 per unit, and the sales price is $30.00 per unit. (Round to nearest unit if necessary.) 1,364 6,667 3,750 1,000 There is not enough information to calculate this number.
1. Break-even analysis To be profitable, a firm must recover its costs. These costs include both its fixed and its varia...

1. Break-even analysis To be profitable, a firm must recover its costs. These costs include both its fixed and its variable costs. One way that a firm evaluates at what stage it would recover the invested costs is to calculate how many units or how much in dollar sales is necessary for the firm to earn a profit. Consider the case of Blue Mouse Manufacturers: Blue Mouse Manufacturers is considering a project that will have fixed costs of $10,000,000. The...

break-even analysis ms 13-1 BREAK-EVEN ANALYSIS A company's fixed operating costs are $430,000, its variable costs...

break-even analysis ms 13-1 BREAK-EVEN ANALYSIS A company's fixed operating costs are $430,000, its variable costs are $2.95 per unit, and the product's sales price is $4.50. What is the company's break-even point; that is, at what unit sales volume will its income equal its costs?
APPLY THE CONCEPTS: Calculate the break-even point in sales dollars for Lennon Products Further analysis of...

APPLY THE CONCEPTS: Calculate the break-even point in sales dollars for Lennon Products Further analysis of Lennon Products’s fixed costs revealed that the company actually faces annual fixed overhead costs of $9,800 and annual fixed selling and administrative costs of $4,200. Variable cost estimates are correct: direct materials cost, $4.00 per unit; direct labor costs, $5.00 per unit; and variable overhead costs, $1.00 per unit. At this time, the selling price of $20 will not change. Complete the following formulas...
At the break-even point: Multiple Choice O Sales would be equal to fixed costs. Sales would...

At the break-even point: Multiple Choice O Sales would be equal to fixed costs. Sales would be equal to total costs. O Both sales would be equal to total costs and contribution margin would be equal to total fixed costs are correct. Both sales we Contribution margin would be equal to total fixed costs.

4. Break-even analysis To be profitable, a firm has recover its costs. These costs include both...

4. Break-even analysis To be profitable, a firm has recover its costs. These costs include both its fixed and its variable costs. One way that a firm evaluates at what stage it would recover the invested costs is to calculate how many units or how much in dollar sales is necessary for the firm to earn a profit. Consider the case of Petrox Oil Co.: Petrox Oil Co. is considering a project that will have fixed costs of $10,000,000. The...