Homework Answers
Fixed costs remain constant during the relevant range
Hence, increase in operating income will be equal to increase in contribution margin less additional cost
= (20-9)*350 -3000
= $850
ROI = Operating Income/Investment
= 850/3000
= 28.33%
Maximum Charge = $3850/1.12 = $3,437.5
CM Ratio = Contribution Margin/Sales
= 11/20
= 55%
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Ch You are...
You are pitching a marketing proposal to a company that sells electronic equipment. For a particular...
You are pitching a marketing proposal to a company that sells electronic equipment. For a particular product line, their current sales price is $20 per unit cost is 59 per unit and they have $20,000 in foxed costs associated with this line. Last year, they sold 8 200 un You are proposing that the company implement your marketing plan which will cost $3,000 per year. You believe this will increase their sales units by 350 units. Calculate the contribution margin...
You are pitching a marketing proposal to a company that sells electronic equipment. For a particular...
You are pitching a marketing proposal to a company that sells electronic equipment. For a particular product line, their current sales price is $20 per unit, cost is $9 per unit and they have $20,000 in fixed costs associated with this line. Last year, they sold 8,200 units. You are proposing that the company implement your marketing plan which will cost $3,000 per year. You believe this will increase their sales units by 350 units. Calculate the contribution margin ratio...
Du are pitching a marketing proposal to a company that sells electronic equipment. For a particular...
Du are pitching a marketing proposal to a company that sells electronic equipment. For a particular product line, their current sales mice is $20 per unit, cost is $9 per unit and they have $20,000 in fixed costs associated with this line. Last year, they sold 8.200 units! Hou are proposing that the company implement your marketing plan which will cost $3,000 per year. You believe this will increase their sales units by 350 units. Calculate the contribution margin ratio...
You are pitching a marketing proposal to a company that sells electronic equipment. For a particular...
You are pitching a marketing proposal to a company that sells electronic equipment. For a particular product line, their current sales price is $20 per unit, cost is $9 per unit and they have $20,000 in fixed costs associated with this line. Last year, they sold 8.200 units. You are proposing that the company implement your marketing plan which will cost $3,000 per year. You believe this will increase their sales units by 350 units. Calculate the contribution margin ratio...
please complete the entire question, try and use the same format if possible Current operating income...
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Current operating income for Bay Area Cycles Co. is $44,000. Selling price per unit is $100, the contribution margin ratio is 20%, an fixed expense is $176,000. Required: 1. Calculate Bay Area Cycle's breakeven point in units and total sales dollars. Break-even units Break-even dollars 2. Calculate Bay Area Cycle's margin of safety and margin of safety ratio. Margin of safety Margin of safety ratio-
please complete the entire question, try and use the same format if possible Backus Inc. makes...
please complete the entire question, try and use the same format if
possible
Backus Inc. makes and sells many consumer products. The firm's average contribution margin ratio is 35%. Management is considering adding a new product that will require an additional $15,000 per month of fixed expenses and will have variable expenses of $7.80 per unit Required: a. Calculate the selling price that will be required for the new product if it is to have a contribution margin ratio equal...
please complete the entire question, try and use the same format if possible Assume MIX Inc....
please complete the entire question, try and use the same format if
possible
Assume MIX Inc. has sales volume of $1,342.000 for two products with May sales and contribution margin ratios as follows: Product A: Sales $514,000: Contribution Margin Ratio 30% Product B: Sales $828,000. Contribution Margin Ratio 60% Required: Assume MIX's fixed expenses are $338,000. Calculate the May total contribution margin, operating income, average contribution margin ratio, and breakeven sales volume (Round "Average contribution margin ratio' answer to 2...
please complete the entire question, try and use the same format if possible Consider the following...
please complete the entire question, try and use the same format if
possible
Consider the following summary modified income statement for Tech Inc.. Sales $594,000 Variable Operating Costs 246,000 Contribution Margin $348,000 Fixed Operating Costs 131,000 Operating Income $217,000 Interest Expense 50,000 Net Income $167,000 Calculate Tech's degree of operating leverage. 2 Degree of Operating Leverage =
please complete the entire question, try and use the same format if possible The following information was availa...
please complete the entire question, try and use the same format if
possible
The following information was available for the year ended December 31, 2019: Sales Net income Average total assets Average total stockholders' equity Dividends per share Earnings per share Market price per share at year-end $240,000 35,560 540,000 310,000 1.22 3.00 24.30 Required: a. Calculate margin, turnover, and ROI for the year ended December 31, 2019 b. Calculate ROE for the year ended December 31, 2019. c. Calculate...
please complete the entire question, try and use the same format if possible Sales for Green...
please complete the entire question, try and use the same format if
possible
Sales for Green Inc. are expected to change by 14%. If Green's degree of operating leverage is 1.30, how much is Green's operating income expected to change? Green's operating income is expected to change by
You are pitching a marketing proposal to a company that sells electronic equipment. For a particular product line, their current sales price is $20 per unit cost is 59 per unit and they have $20,000 in foxed costs associated with this line. Last year, they sold 8 200 un You are proposing that the company implement your marketing plan which will cost $3,000 per year. You believe this will increase their sales units by 350 units. Calculate the contribution margin...
You are pitching a marketing proposal to a company that sells electronic equipment. For a particular product line, their current sales price is $20 per unit, cost is $9 per unit and they have $20,000 in fixed costs associated with this line. Last year, they sold 8,200 units. You are proposing that the company implement your marketing plan which will cost $3,000 per year. You believe this will increase their sales units by 350 units. Calculate the contribution margin ratio...
Du are pitching a marketing proposal to a company that sells electronic equipment. For a particular product line, their current sales mice is $20 per unit, cost is $9 per unit and they have $20,000 in fixed costs associated with this line. Last year, they sold 8.200 units! Hou are proposing that the company implement your marketing plan which will cost $3,000 per year. You believe this will increase their sales units by 350 units. Calculate the contribution margin ratio...
You are pitching a marketing proposal to a company that sells electronic equipment. For a particular product line, their current sales price is $20 per unit, cost is $9 per unit and they have $20,000 in fixed costs associated with this line. Last year, they sold 8.200 units. You are proposing that the company implement your marketing plan which will cost $3,000 per year. You believe this will increase their sales units by 350 units. Calculate the contribution margin ratio...
please complete the entire question, try and use the same format if
possible
Current operating income for Bay Area Cycles Co. is $44,000. Selling price per unit is $100, the contribution margin ratio is 20%, an fixed expense is $176,000. Required: 1. Calculate Bay Area Cycle's breakeven point in units and total sales dollars. Break-even units Break-even dollars 2. Calculate Bay Area Cycle's margin of safety and margin of safety ratio. Margin of safety Margin of safety ratio-
please complete the entire question, try and use the same format if
possible
Backus Inc. makes and sells many consumer products. The firm's average contribution margin ratio is 35%. Management is considering adding a new product that will require an additional $15,000 per month of fixed expenses and will have variable expenses of $7.80 per unit Required: a. Calculate the selling price that will be required for the new product if it is to have a contribution margin ratio equal...
please complete the entire question, try and use the same format if
possible
Assume MIX Inc. has sales volume of $1,342.000 for two products with May sales and contribution margin ratios as follows: Product A: Sales $514,000: Contribution Margin Ratio 30% Product B: Sales $828,000. Contribution Margin Ratio 60% Required: Assume MIX's fixed expenses are $338,000. Calculate the May total contribution margin, operating income, average contribution margin ratio, and breakeven sales volume (Round "Average contribution margin ratio' answer to 2...
please complete the entire question, try and use the same format if
possible
Consider the following summary modified income statement for Tech Inc.. Sales $594,000 Variable Operating Costs 246,000 Contribution Margin $348,000 Fixed Operating Costs 131,000 Operating Income $217,000 Interest Expense 50,000 Net Income $167,000 Calculate Tech's degree of operating leverage. 2 Degree of Operating Leverage =
please complete the entire question, try and use the same format if
possible
The following information was available for the year ended December 31, 2019: Sales Net income Average total assets Average total stockholders' equity Dividends per share Earnings per share Market price per share at year-end $240,000 35,560 540,000 310,000 1.22 3.00 24.30 Required: a. Calculate margin, turnover, and ROI for the year ended December 31, 2019 b. Calculate ROE for the year ended December 31, 2019. c. Calculate...
please complete the entire question, try and use the same format if
possible
Sales for Green Inc. are expected to change by 14%. If Green's degree of operating leverage is 1.30, how much is Green's operating income expected to change? Green's operating income is expected to change by
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