Spice Inc.'s unit selling price is $48, unit variable costs are $35, fixed costs are $117,000,...
Spice Inc.'s unit selling price is $48, unit variable costs are $35, fixed costs are $117,000, and current sales are 10,000 units. How much will operating income change if sales increase by 6,000 units?
a.$130,000 decrease
b.$208,000 increase
c.$78,000 increase
d.$130,000 increase
Homework Answers
Answer
--Contribution margin per unit = $ 48 selling price - $ 35 variable cost = $ 13 per unit.
--If sales increased by 6000 units, fixed cost being same, the Operating Income will change by the change in contribution margin.
--Increase in Operating Income = 6000 units x $ 13 = $ 78,000
--Correct Answer = Option 'C' $ 78,000 increase.
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Spice Inc.'s unit selling price is $48, unit variable costs are
$35, fixed costs are $117,000,...
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When Isaiah Company has fixed costs of $103,530 and the contribution margin is $21, the break-even point is Oa. 5,700 units Ob. 12,420 units Oc.9,860 units Od. 4,930 units Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will operating income change if sales increase by $40,000? Oa. $8,000 decrease Ob. $30,000 decrease Oc. $30,000 increase Od. $8,000 increase Zipee Inc....
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of...
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the protit change in the short term if you reduce the price to $46? A. decrease by $3,240 B. decrease by S840 C. no change D. increase by $360 E. increase by $1,800
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of...
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the protit change in the short term if you reduce the price to $46? A. decrease by $3,240 B. decrease by S840 C. no change D. increase by $360 E. increase by $1,800
1) 2) If fixed costs are $450,000, the unit selling price is $75, and the unit...
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If fixed costs are $450,000, the unit selling price is $75, and the unit variable costs are $50, what are the old and new break-even sales (units) if the unit selling price increases by $10? a. 18,000 units and 12,857 units b. 6,000 units and 5,294 units c.9,000 units and 15,000 units Od. 18,000 units and 6,000 units Forde Co. has an operating leverage of 4. Sales are expected to increase by 12% next year. Operating income is...
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Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO5-4] [The...
Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO5-4] [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 80 52 $ 28 Percent of Sales 100% 65 35% Fixed expenses are $76,000 per month and the company is selling 4,600 units per month. Exercise 5-5 Part 1 Required: 1-a. How much will net operating income increase (decrease) per...
Spice Inc.'s unit selling price is $46, unit variable costs are $39, fixed costs are $117,000, and current sales are 10,200 units. How much will operating income change if sales increase by 5,900 units? Oa. $112,700 increase Ob. $41,300 increase Oc. $71,400 decrease Od. $71,400 increase
calor Spice Inc.'s unit selling price is $46, the unit variable costs are $39, fixed costs are $101,000, and current sales are 10,800 units. How much will operating income change if sales increase by 5,400 units? a. $113,400 increase b. 575,600 Increase c. $37,800 increase d. $75,600 decrease
Spice Inc.'s unit selling price is $49, unit variable costs are $37, fixed costs are $112,000, and current sales are 9,700 units. How much will operating income change if sales increase by 5,000 units? Da, $176,400 increase b. $116,400 decrease de $60,000 ncrease d. $116,400 Increase
1)
2)
3)
4)
5)
When Isaiah Company has fixed costs of $103,530 and the contribution margin is $21, the break-even point is Oa. 5,700 units Ob. 12,420 units Oc.9,860 units Od. 4,930 units Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will operating income change if sales increase by $40,000? Oa. $8,000 decrease Ob. $30,000 decrease Oc. $30,000 increase Od. $8,000 increase Zipee Inc....
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the protit change in the short term if you reduce the price to $46? A. decrease by $3,240 B. decrease by S840 C. no change D. increase by $360 E. increase by $1,800
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the protit change in the short term if you reduce the price to $46? A. decrease by $3,240 B. decrease by S840 C. no change D. increase by $360 E. increase by $1,800
1)
2)
If fixed costs are $450,000, the unit selling price is $75, and the unit variable costs are $50, what are the old and new break-even sales (units) if the unit selling price increases by $10? a. 18,000 units and 12,857 units b. 6,000 units and 5,294 units c.9,000 units and 15,000 units Od. 18,000 units and 6,000 units Forde Co. has an operating leverage of 4. Sales are expected to increase by 12% next year. Operating income is...
Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO5-4] [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 80 52 $ 28 Percent of Sales 100% 65 35% Fixed expenses are $76,000 per month and the company is selling 4,600 units per month. Exercise 5-5 Part 1 Required: 1-a. How much will net operating income increase (decrease) per...
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