Question

MULTIPLE CHOICE. Choose the alternative that best completes the statement were the The condor Carraway Conny show a contribution margin of Son. The company desires to com profit or 5000 and has the cost of $70,000. What sales revent would have to be sented in order to can the desired profit 2) For 2013, Belcher Company sold 100,000 units at a selling price of $25 per unit. Variable cost per unit was 520, and Winchester's net income for the year was S50,000. What was the amount of Winchester's fixed costs 3) SC State has variable costs equal to 40% of sales. The company is considering a proposal that will in sales by $10,000 and total fixed costs by $7,000. By what amount will net income decrease? 3) 4) Joseph Company has variable costs per unit of $25, fixed costs of $360,000, and a break-- 60,000 units. What will be the new break-even point in units if variable costs decrease by S costs increase by $100,000? 4) po u n 360,000 100,oec ga 460,000

Answer 1

Please give positive ratings so I can keep answering. Thanks!

Answer 1	Amount $		Note
Fixed costs	70,000.00		A
Target Profit	50,000.00		B
Target Contribution	120,000.00		C=A+B
Contribution ratio	50%		D
Sales Revenue	240,000.00		E=C/D
Answer 2
Units sold	100,000.00		F
Sell Price	25.00		G
Variable cost	20.00		H
Contribution per unit	5.00		I=G-H
Contribution amount	500,000.00		J=F*I
Less: Net Income	50,000.00		K
Fixed costs	450,000.00		L=J-K
Answer 3
Variable cost ratio	40%		M
So, Contribution ratio will be	60%		N=1-M
Sales will increase by	10,000.00		O
So, Contribution will increase by	6,000.00		P=N*O
But, fixed cost will increase by	7,000.00		Q
So Net Income will decrease by	1,000.00		R=Q-P
Answer 4
Fixed costs	360,000.00		S
At breakeven point fixed cost= contribution
So, breakeven contribution is also	360,000.00		T
Breakeven units	60,000.00		U
Contribution per unit	6.00		V=T/U
Variable cost per unit	25.00		W
Sell Price per unit	31.00		X=V+W
Revised Breakeven units
Sell Price per unit	31.00		See X
Revised Variable cost per unit	22.00	Decreased by $ 3.	Y= W-3
Contribution per unit	9.00		Z=X-Y
Revised Fixed costs	460,000.00	Increased by $ 100,000.	AA= S+100,000
Revised Breakeven units	51,111.11		AB= AA/Z