Homework Answers
OPTION- D $37,800 Increase.
Increase in operating income = Increase in units × Contribution margin per unit.
Contribution Margin = Selling price per unit - Variable cost per unit.
Contribution margin = $46 - 39 = $7.
Increase in operating income = 5,400 units × $7 = $37,800 Increase.
if you have any doubts please comment on the answer
Add Answer to:
calor Spice Inc.'s unit selling price is $46, the unit variable costs are $39, fixed costs...
Spice Inc.'s unit selling price is $46, unit variable costs are $39, fixed costs are $117,000,...
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
Spice Inc.'s unit selling price is $46, unit variable costs are $36, fixed costs are $116,000,...
Spice Inc.'s unit selling price is $46, unit variable costs are $36, fixed costs are $116,000, and current sales are 9,000 units. How much will operating income change if sales increase by 5,500 units? a.$90,000 decrease b.$145,000 increase c.$55,000 increase d.$90,000 increase
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
Spice Inc.'s unit selling price is $49, unit variable costs are $37, fixed costs are $112,000,...
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
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
stuggling. please hekp Question 10 2.5 pts Fixed costs are unknown. Variable costs are $20 per...
stuggling. please hekp
Question 10 2.5 pts 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 profit change in the short term if you reduce the price to $46? decrease by $3,240 O increase by $360 O increase by $1,800 O no change decrease by $840
EXERCISE 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume L05-4 Data for Hermann...
EXERCISE 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume L05-4 Data for Hermann Corporation are shown below: Per Unit Percent of Sales $90 63 100% 70 Selling price Variable expenses Contribution margin $27 30% Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Required: 1. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000 and monthly sales increase by $9,000? 2. Refer...
Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO5-4] [The following 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 Percent Per Unit of Sales $ 90 100% 63 $ 27 308 70 Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Exercise 5-5 Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if...
Saved Help Save & Exit Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and...
Saved Help Save & Exit Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L05-4) [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Per Unit $75 Percent of Sales 100% Selling price Variable expenses Contribution margin 51 $24 32% Fixed expenses are $75,000 per month and the company is selling 4,000 units per month Exercise 5-5 Part 2 2-a. Refer to the original data. How much will net operating...
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
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
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
stuggling. please hekp
Question 10 2.5 pts 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 profit change in the short term if you reduce the price to $46? decrease by $3,240 O increase by $360 O increase by $1,800 O no change decrease by $840
EXERCISE 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume L05-4 Data for Hermann Corporation are shown below: Per Unit Percent of Sales $90 63 100% 70 Selling price Variable expenses Contribution margin $27 30% Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Required: 1. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000 and monthly sales increase by $9,000? 2. Refer...
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 Percent Per Unit of Sales $ 90 100% 63 $ 27 308 70 Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Exercise 5-5 Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if...
Saved Help Save & Exit Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L05-4) [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Per Unit $75 Percent of Sales 100% Selling price Variable expenses Contribution margin 51 $24 32% Fixed expenses are $75,000 per month and the company is selling 4,000 units per month Exercise 5-5 Part 2 2-a. Refer to the original data. How much will net operating...
Most questions answered within 3 hours.
-
1. The correlation coefficient determined for two variables has
a value of 0.89. Describe, in words,...
asked 30 seconds ago -
Kyle, a 95.0 kg football player, leaps straight up into the air
(with no horizontal velocity)...
asked 22 minutes ago -
Which of the following is a measure of profitability?
A.
Quick (acid-test) ratio
B.
Net sales...
asked 25 minutes ago -
Find the total pressure exerted by 2 grams of ethane and 3 grams
of CO2 contained...
asked 26 minutes ago -
A fireman standing on a 5.2 m high ladder operates a water hose
with a round...
asked 23 minutes ago -
A cream formulation is studied for accelerated stability study.
Creaming was observed when formulation was tested...
asked 26 minutes ago -
A 1,150 lumen light bulb is placed 37 cm in front of a mirrored
wall, whose...
asked 36 minutes ago -
Given that z is a standard normal random variable, compute the
following probabilities (to 4 decimals)....
asked 42 minutes ago -
You begin preparation of the calibration curve to measure
absorbance vs concentration of FeSCN2+. To do...
asked 1 hour ago -
When you speak after breathing helium, in which the speed of
sound is much greater than...
asked 52 minutes ago -
3. Stock Valuation: You are the CEO of Under Armour, Inc. and
are thinking about how...
asked 57 minutes ago -
Choose a brand. Critique the brand in terms of its brand
positioning, brand identity and brand...
asked 59 minutes ago