Homework Answers
The breakeven point =Fixed Cost/(Sale Price -Variable Costs)
=2400/(10-4) =400
Breakeven point =400 units
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find the break-even point:
BEHAVORIAL INCOME STATEMENT JAN FEB PER 600 800 UNIT SOLD SOLD SALES...
Knowledge Check 03 Once the break-even point has been reached, net operating income will increase by...
Knowledge Check 03
Once the break-even point has been reached, net operating income
will increase by the amount of the _____ for each additional unit
sold.
unit contribution margin
unit selling price
variable expense per unit
fixed expense per unit
Knowledge Check 04
Break-even point is the level of sales at which ______.
total profits equals total costs
total profits exceed total costs
total revenue equals total costs
total sales equal total projections
Knowledge Check 01 Atlas Corporation sells 100...
The amount by which actual or expected sales exceeds break-even sales is referred to as contribution...
The amount by which actual or expected sales exceeds break-even sales is referred to as contribution margin margin of safety unanticipated profit. target net income. Question 22 Cost structure cannot be significantly changed by companies generally has little impact on profitability. refers to the relative proportion of fixed versus variable costs that a company incurs. refers to the relative proportion of operating versus nonoperating costs that a company incurs Question 19 The break-even point is where total sales equal total...
Which statement about the break-even point is false: Multiple Choice The break-even point is where sales...
Which statement about the break-even point is false: Multiple Choice The break-even point is where sales are equal to variable costs. The break-even point can be expressed in both units sold and in sales dollars. The break-even point is where contribution margin is equal to fixed costs. O O The break-even point is the level of sales at which point profit is zero.
Problem 11-28 Determining the break-even point and preparing a contribution margin income statement LO 11-5 Ritchie...
Problem 11-28 Determining the break-even point and preparing a contribution margin income statement LO 11-5 Ritchie Manufacturing Company makes a product that it sells for $200 per unit. The company incurs variable manufacturing costs of $101 per unit. Variable selling expenses are $19 per unit, annual fixed manufacturing costs are $464,000, and fixed selling and administrative costs are $256,000 per year. Required Determine the break-even point in units and dollars using each of the following approaches: Use the equation method....
Exam #2 Review I. Which of the following would not affect the units required to break-even?...
Exam #2 Review I. Which of the following would not affect the units required to break-even? a. number of units actually sold b. variable expense per unit e. total fixed expense d. selling price per unit 2. Which of the following would be more likely produce a labor efficiency variance? a. Using less expensive direet materials b. Use of persons with high wage rates in tasks that normally call for minimum wage employees c. Using untrained workers d. Higher overhead...
In the month of September, Matlock Industries sold 800 units of product. The average sales price...
In the month of September, Matlock Industries sold 800 units of product. The average sales price was $30. During the month, fixed costs were $6,300 and variable costs were 70% of sales. Determine the contribution margin in dollars, per unit, and as a ratio. Contribution margin (in dollars) Unit contribution margin 24 Contribution margin ratio Using the contribution margin technique, compute the break-even point in dollars and in units. Break-even sales (in dollars) Break-even sales (in units) units Question Attemnts...
A contribution margin income statement organizes costs by behavior
Contribution Margin Income StatementA contribution margin income statement organizes costs by behavior (variable or fixed), rather than by function (operating, selling, or administrative). The contribution margin is the difference between sales and variable expenses .Byron Manufacturing has one product that sells for $24.00 per unit. The company estimates fixed costs at $6,000, direct materials at $4.00 per unit, direct labor at $5.00 per unit, and variable overhead costs at $3.00 per unit.Fill in the contribution margin income statement when 730...
EXERCISES: Set A (continued) 28. Break-Even Point and Target Profit Mensured in Sales Dollars (Single Product)...
EXERCISES: Set A (continued) 28. Break-Even Point and Target Profit Mensured in Sales Dollars (Single Product) a. The contribution margin ratio is calculated as b. The break-even point in sales dollars is calculated as: c. The target profit point in sales dollars is calculated as: 29. Margin of Safety (Single Product) a. The margin of safety in units: b. The margin of safety in sales dollars: Questio de Inc. How many units must be sold to earn a monthly profit...
Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal....
Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal. However, the goal of most companies is to make a profit. When a company decides that it wants to earn more than the break-even point of income, it must define the amount it thinks it will realistically make. By modifying the break-even equation, the sales required to earn a target or desired amount of profit may be computed. Complete the following: If a company...
Problem 6-2 Keebee, Inc. sells laptops for $1,000 per unit. Variable costs per unit are $400...
Problem 6-2 Keebee, Inc. sells laptops for $1,000 per unit. Variable costs per unit are $400 and monthly fixed costs are $2,400,000. The contribution margin income statement for last month is as follows. Contribution Margin Income Statement 6,000 units sold Per unit Total Percent of sales Sales price $1,000 $6,000,000 100% Variable cost 400 2,400,000 40% Contribution margin $600 3,600,000 60% Fixed costs 2,400,000 Profit $1,200,000 Break-even units = $2,400,000 ÷ 600 = 4,000 Break-even sales = 4,000 × $1,000...
Knowledge Check 03
Once the break-even point has been reached, net operating income
will increase by the amount of the _____ for each additional unit
sold.
unit contribution margin
unit selling price
variable expense per unit
fixed expense per unit
Knowledge Check 04
Break-even point is the level of sales at which ______.
total profits equals total costs
total profits exceed total costs
total revenue equals total costs
total sales equal total projections
Knowledge Check 01 Atlas Corporation sells 100...
The amount by which actual or expected sales exceeds break-even sales is referred to as contribution margin margin of safety unanticipated profit. target net income. Question 22 Cost structure cannot be significantly changed by companies generally has little impact on profitability. refers to the relative proportion of fixed versus variable costs that a company incurs. refers to the relative proportion of operating versus nonoperating costs that a company incurs Question 19 The break-even point is where total sales equal total...
Which statement about the break-even point is false: Multiple Choice The break-even point is where sales are equal to variable costs. The break-even point can be expressed in both units sold and in sales dollars. The break-even point is where contribution margin is equal to fixed costs. O O The break-even point is the level of sales at which point profit is zero.
Exam #2 Review I. Which of the following would not affect the units required to break-even? a. number of units actually sold b. variable expense per unit e. total fixed expense d. selling price per unit 2. Which of the following would be more likely produce a labor efficiency variance? a. Using less expensive direet materials b. Use of persons with high wage rates in tasks that normally call for minimum wage employees c. Using untrained workers d. Higher overhead...
In the month of September, Matlock Industries sold 800 units of product. The average sales price was $30. During the month, fixed costs were $6,300 and variable costs were 70% of sales. Determine the contribution margin in dollars, per unit, and as a ratio. Contribution margin (in dollars) Unit contribution margin 24 Contribution margin ratio Using the contribution margin technique, compute the break-even point in dollars and in units. Break-even sales (in dollars) Break-even sales (in units) units Question Attemnts...
EXERCISES: Set A (continued) 28. Break-Even Point and Target Profit Mensured in Sales Dollars (Single Product) a. The contribution margin ratio is calculated as b. The break-even point in sales dollars is calculated as: c. The target profit point in sales dollars is calculated as: 29. Margin of Safety (Single Product) a. The margin of safety in units: b. The margin of safety in sales dollars: Questio de Inc. How many units must be sold to earn a monthly profit...
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