Homework Answers
Solution:
The Answer is C ) $ 15,000.
Total Fixed Cost = Contribution Margin - Operating Income = $65,000 - $ 50,000 = $ 15,000
Working:
| Particulars | Amount $ | Calculation |
| Targeted Sales | $ 260,000 | Given |
| Contribution Margin | $ 65,000 | ($260,000 * 0.25) Targeted Sales * Contribution Margin Ratio |
| Operating Income | $ 50,000 | Given |
| Fixed Cost | $ 15,000 | $65,000 - $ 50,000 |
Notes:
1) Contribution Margin Ratio is differences between Sales and Variable Cost, expressed as percentage. Contribution Margin is total earnings available to pay for fixed expense and generate a profit.
2) So, Remaining options are incorrect because Option C is correct.
Add Answer to:
If the contribution margin ratio is 0.25, targeted operating income is $50,000, and targeted sales volume...
If the contribution margin ratio 1 0.25 targeted operating income is $25,000, and targeted sales volume...
If the contribution margin ratio 1 0.25 targeted operating income is $25,000, and targeted sales volume in dollars is \$200,000 , then total fixed costs are what : $75.000 525,000 $100,000 \$50,000
If the contribution margin ratio is 0.45, targeted operating income is $95,000, and targeted sales volume...
If the contribution margin ratio is 0.45, targeted operating income is $95,000, and targeted sales volume in dollars is $550,000, then the degree of operating leverage is ________. A. 2.61 times B. 3.18 times C. 1.22 times D. 0.38 times
If the contribution margin ratio is 0.60, targeted operating income is $100,000, and targeted sales volume...
If the contribution margin ratio is 0.60, targeted operating income is $100,000, and targeted sales volume in dollars is $500,000, then the degree of operating leverage is ________. 3.00 times 0.67 times 0.33 times 2.00 times
11. If the contribution margin ratio is 0.40, targeted operating income is $80,000, and targeted sales...
11. If the contribution margin ratio is 0.40, targeted operating income is $80,000, and targeted sales volume in dollars is $500,000, then the degree of operating leverage is: A) 1.50 times B) 2.00 times C) 2.50 times D) 3.00 times
If the contribution margin ratio is 0.40, targeted operating income is $95,000, and targeted sales volume...
If the contribution margin ratio is 0.40, targeted operating income is $95,000, and targeted sales volume in dollars is $520,000, then the degree of operating leverage is ________. 3.28 times 0.46 times 1.50 times 2.19 times Sales of Blistre Autos are 350,000, variable cost is 210,000, fixed cost is 90,000 tax rate is 40%. Calculate the operating leverage of the company. 1.50 times 2.80 times 4.67 times 1.80 times Tony Manufacturing produces a single product that sells for $80. Variable...
If the contribution margin ratio is 0.60, targeted operating income is $55,000, and fixed costs are $90,000, then sales...
If the contribution margin ratio is 0.60, targeted operating income is $55,000, and fixed costs are $90,000, then sales volume in dollars is ________. $150,000 $91,667 $362,500 $241,667 Blistre Company operates on a contribution margin of 40% and currently has fixed costs of $530,000. Next year, sales are projected to be $3,200,000. An advertising campaign is being evaluated that costs an additional $110,000. How much would sales have to increase to justify the additional expenditure? $1,280,000 $165,000 $275,000 $530,000 ________...
Question 13 1.5 If the contribution margin ratio is 0.40, targeted operating income is 595,000, and...
Question 13 1.5 If the contribution margin ratio is 0.40, targeted operating income is 595,000, and targeted sales volume in dollars is 5520,000, then the degree of operating leverage is 1.50 times 0.46 times 3.28 times 2.19 times
2 point CLO-3] if the contribution margin ratlos 0.40, targeted operating Income is 580,000, and targeted...
2 point CLO-3] if the contribution margin ratlos 0.40, targeted operating Income is 580,000, and targeted sales volume in dollars is $500,000, then the degree of operating leverages 1 25 times 3.50 times 1.00 times 2.00 times 1.50 times 3.00 times 1.75 times 2.50 times 2 point CLO-3] if the contribution margin ratlos 0.40, targeted operating Income is 580,000, and targeted sales volume in dollars is $500,000, then the degree of operating leverages 1 25 times 3.50 times 1.00 times...
1) Key Company has a targeted sales volume of $62,300 units. Total fixed costs are $31,200....
1) Key Company has a targeted sales volume of $62,300 units. Total fixed costs are $31,200. The contribution margin per unit is $1.20. What is targeted net income? A.) $31,200 B.) $43,560 C.) $37,440 D.) $74,760 2) ________ is the relative proportions or combinations of quantities of different products that comprise total sales. A) Sales mix B) Constant mix C) Fluctuating mix D) Variable cost ratio 3) The Todd Dolhun Company has the following information available: Targeted after-tax net income...
P18-2A Prepare a CVP income statement, compute break-even point, contribution margin ratio, margin of safety ratio...
P18-2A Prepare a CVP income statement, compute break-even point, contribution margin ratio, margin of safety ratio and sales for target net income Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales $1,800,000 Selling expenses - variable Direct materials 430,000 Selling expenses - fixed Direct labor 360,000 Administrative...
Question 13 1.5 If the contribution margin ratio is 0.40, targeted operating income is 595,000, and targeted sales volume in dollars is 5520,000, then the degree of operating leverage is 1.50 times 0.46 times 3.28 times 2.19 times
2 point CLO-3] if the contribution margin ratlos 0.40, targeted operating Income is 580,000, and targeted sales volume in dollars is $500,000, then the degree of operating leverages 1 25 times 3.50 times 1.00 times 2.00 times 1.50 times 3.00 times 1.75 times 2.50 times 2 point CLO-3] if the contribution margin ratlos 0.40, targeted operating Income is 580,000, and targeted sales volume in dollars is $500,000, then the degree of operating leverages 1 25 times 3.50 times 1.00 times...
Most questions answered within 3 hours.
-
Which of the following will most likely occur as the result of
an unanticipated increase in...
asked 29 seconds ago -
An object rests flat on a tablecloth, which is on top of a
table. Suppose you...
asked 3 minutes ago -
A second baseman tosses the ball to the first baseman, who
catches it at the same...
asked 4 minutes ago -
Adria Lopez, owner of Success Systems, decides to prepare a
statement of cash flows for her...
asked 23 minutes ago -
The reach and involvement of the federal government, in terms of
its role in disaster relief,...
asked 26 minutes ago -
Problem: The equilibrium constant, Keq, is 5 x 10^-11 m HCO3
<-----------> H^+ + CO3^-2 Calculate...
asked 33 minutes ago -
Explain how blackbody radiation led to the idea of "quanta."
Will rate answer!
asked 38 minutes ago -
Two noble gases (Ne and He) are injected into the chambers of an
insulated container. Each...
asked 33 minutes ago -
Suppose you purchase a zero coupon bond with a face value of
$1,000, maturing in 18...
asked 38 minutes ago -
Do you believe that the $785,000 amount at the center of the
Overstock-Grant Thornton dispute was...
asked 39 minutes ago -
Find and , the mean and standard deviation of the
sampling distribution of :
μ = 25,...
asked 1 hour ago -
According to the manufacturer of a certain candy, 9% of the
candy produced are red. If...
asked 1 hour ago