answer = 50%
Contribution Marin Ratio = Contribution Margin / Sales
Revised Contribution Marin = Selling Price - Variable cost (Revised ) = 120- (80-20) = 120-60 = 60
Revised Contribution Margin Raito = 60/120 =50%
MC Qu. 118 Forrester Company is considering buying... 005 Forrester Company is considering buying new equipment...
Accounting Forrester Company is considering buying new equipment that would increase monthly fixed costs from $180,000 to $612,000 and would decrease the current variable costs of $90 by $30 per unit. The selling price of $120 is not expected to change. Forrester's current break-even sales are $720,000 and current break-even units are 6,000. If Forrester purchases this new equipment, the revised contribution margin ratio would be:
Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $400,000 and current break-even units are 4,000. If Forrester purchases this new equipment, the revised contribution margin ratio would be: Multiple Choice 30% 60%, 40%. IO%. 70%.
The budgeted Income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $150,800. $988.000 Sales (52,000 units) Costs: Direct materials Direct labor Fixed factory overhead Variable factory overhead Fixed marketing costs Variable marketing costs Pretax income $ 235, 400 240,200 101,000 150,200 110,200 50,200 887,200 $100,800 Multiple Choice 50.200 60.333 35.200 Forrester Company is considering buying new equipment that...
Flannigan Company manufactures and sells a single product that sells for $600 per unit: variable costs are $324. Annual fixed costs are $984.400. Current sales volume is $4.340,000. Compute the break-even point in units. Multiple Choice Ο Ο 1,641. Ο 3,567. Ο 4,697. Ο Ο 3,038. Ο Ο 528. Forrester Company is considering buying new equipment that would increase monthly fixed costs from $577.500 to $741.000 and would decrease the current variable costs of $75 by $10 per unit. The...
MC Qu. 159 Flannigan Company manufactures and sells... 005 variable costs are $378. Annual fixed costs are $993,600 Current sales Flannigan Company manufactures and sells a single product that sells for $700 per volume is $4,360,000. Compute the contribution margin per unit 10641
MC Qu. 165 Flannigan Company manufactures and sells... 005 points Flannigan Company manufactures and sells a single product that sells for $620 per unit: variable costs are $372. Annual fixed costs are $868,000. Current sales volume is $4,370,000. Compute the current margin of safety in dollars for Flannigan Company 9 00:54 Mutiple Choice O $2,864,400 O $321170 O $2,170,000 O 52.200.000
MC Qu. 163 Flannigan Company manufactures and sells... Flannigan Company manufactures and sells a single product that sells for $450 per unit: variable costs are $252. Annual fixed costs are $897,600. Current sale volume is $4,240,000. Flannigan Company management targets an annual pre-tax income of $1,165,000. Compute the unit sales to earn the target pre-tax net income. Multiple Choice 0 0 0 MC Qu. 114 Maroon Company's contribution... Maroon Company's contribution margin ratio is 32%. Total fixed costs are $124,800....
Nece 376.000 Chapter 18 Pop Test 2000xl = 275.000 1. A firm expects to sell 25.000 units of its product at Sil per unit. Pretax income is predicted to be $60,000. If the variable costs per unit are $5, total fixed costs must be: 5 2. During March, a fimm expects its total sales to be $160,000, its total variable costs to be 595,000, and its total fixed costs to be $25,000. The contribution margin for March is: S 3....
Bene Company is considering selling a piece of factory equipment and buying new equipment to replace it. Identify two cash flows that must be considered and how they would be determined.
TB MC Qu. 12-63 Fabri Corporation is considering eliminating ... Fabri Corporation is considering eliminating a department that has an annual contribution margin of $27,000 and $73,000 in annual fixed costs. Of the fixed costs, $16,500 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be: 3.12 points (8 01:08:51 Multiple Choice ($46,000) $46,000 ($29,500) $29,500 Chapter 12 Quiz i Help Save & Exit Submit TB MC Qu. 12-64 The management of Furrow...