Homework Answers
Operating income will increase by = (sales per unit - variable cost per unit)*sales unit increase
= (49-37)*5000
= $60,000
Option c. is correct answer.
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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
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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 $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
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of...
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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
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...
Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost...
Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost remains the same, sales volume in units remains the same, and total fixed costs increase by $10,000, which of the following predictions is correct? Unit Contribution Margin Break-Even Volume Total Profit ОА Same Increase Decrease Same Decrease Decrease Increase Increase Decrease Decrease Decrease Increase Decrease Increase Decrease QUESTION 11 At sales volume of 600 units, variable costs are 58 per unit, and fixed costs...
Required information Exercise 5-5 (Static) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L05-4)...
Required information Exercise 5-5 (Static) 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: 2 Selling price Variable expenses Contribution margin Percent Per Unit of Sales $ 90 100 63 70 $ 27 30% k 1 Fixed expenses are $30,000 per month and the company is selling 2.000 units per month ces Exercise 5-5 (Static) Part 1 Required: 1-a. How much will...
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 $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
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
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...
Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost remains the same, sales volume in units remains the same, and total fixed costs increase by $10,000, which of the following predictions is correct? Unit Contribution Margin Break-Even Volume Total Profit ОА Same Increase Decrease Same Decrease Decrease Increase Increase Decrease Decrease Decrease Increase Decrease Increase Decrease QUESTION 11 At sales volume of 600 units, variable costs are 58 per unit, and fixed costs...
Required information Exercise 5-5 (Static) 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: 2 Selling price Variable expenses Contribution margin Percent Per Unit of Sales $ 90 100 63 70 $ 27 30% k 1 Fixed expenses are $30,000 per month and the company is selling 2.000 units per month ces Exercise 5-5 (Static) Part 1 Required: 1-a. How much will...
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