Homework Answers
Answer
- Sale price – Variable cost = Contribution margin
- Fixed Cost / Contribution margin = Break even point.
- Hence, if the sale price alone increases,
>the contribution margin will increase, and
>Break even point will decrease. - Correct Answer
Option ‘A’ CM Ratio INCREASES, Break even point DECREASES.
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Mossfeet Shoe Corporation is a single product firm. The company is predicting that a price increase...
Mossfeet Shoe Corporation is a single product firm. The company is predicting that a price increase...
Mossfeet Shoe Corporation is a single product firm. The company is predicting that a price increase next year will not cause unit sales to decrease. What effect would this price increase have on the following items for next year? Contribution Break-even Sales (8,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $320,000 192,000 128,000 118,400 $ 9,600
Chapter 6 Qu Help Save & Exit Sub 1 Mosstoot Shoe Corporation is a single product...
Chapter 6 Qu Help Save & Exit Sub 1 Mosstoot Shoe Corporation is a single product im The company is predicting that a price increase next year will not cause unitses to decrease What effect would this price increase have on the following rems for next year? 50 A) 8) C) D) Contribution Margin Ratio Increase Decrease Increase Decrease Break even Point Decrease Decrease Neffect No effect Mpt Chee Choice A A Choce B Coco
Which of the following is an assumption underlying standard CVP analysis? Multiple Choice The price of...
Which of the following is an assumption underlying standard CVP analysis? Multiple Choice The price of a product or service is expected to change as volume changes. 0 Fixed expenses will change as volume increases. In multiproduct companies, the sales mix is constant. С C In manufacturing companies, inventories always change. If sales volume increases and all other factors remain constant, then the: Multiple Choice net operating income will decrease. O margin of safety will increase. contribution margin ratio will...
Awtis Corporation has a margin of safety percentage of 25% based on its actual sales. The...
Awtis Corporation has a margin of safety percentage of 25% based on its actual sales. The break-even point is $366,000 and the variable expenses are 45% of sales. Given this information, the actual profit is: Multiple Choice Ο Ο 697600 Ο $67100 Ο $18,300 Ο $50,325 Kuzio Corporation produces and sells a single product. Data concerning that product appear below Selling price Variable expenses Contribution margin Per Unit $140 56 $ 84 Percent of Sales 100% 40% 60% The company...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $ 150 75 $ 75 Percent of Sales 100% 50% 50% The company is currently selling 6,500 units per month. Fixed expenses are $206,000 per month The marketing manager believes that a $6,300 increase in the monthly advertising budget would result in a 100 unit increase in monthly sales. What should be the overall effect on the company's...
Help Save & Exit Submit Kuzio Corporation produces and sells a single product. Data concerning that product ap...
Help Save & Exit Submit Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit $130 Percent of Sales 1008 509 Selling price Variable expenses Contribution margin $ 65 The company is currently selling 6,000 units per month. Fixed expenses are $214,000 per month. The marketing manager believes that a $7.200 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales. What should be the overall effect on...
East Company manufactures and sells a single product with a positive contribution margin. If the selling...
East Company manufactures and sells a single product with a positive contribution margin. If the selling price and the variable expense per unit both increase 5% and fixed expenses do not change, what is the effect on the contribution margin per unit and the contribution margin ratio? Contribution Margin per Unit No change Increase Contribution Margin Ratio No change Increase No change Decrease C. Increase Increase Multiple Choice Option a. Option b. Option c. Option d.
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $130 78 $ 52 Percent of Sales 100% 60% 40% The company is currently selling 6,800 units per month. Fixed expenses are $180,000 per month. The marketing manager believes that a $8,000 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales. What should be the overall effect on the company's monthly...
Abensan Company sells a single product. If both the selling price and variable cost per unit...
Abensan Company sells a single product. If both the selling price and variable cost per unit increase by 5% and fixed costs remain steady, then contribution margin per unit and break- even point in units will, respectively, decrease and increase. increase and remain unchanged. decrease and remain unchanged. O increase and decrease.
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 130 100 % Variable expenses 65 50 % Contribution margin $ 65 50 % The company is currently selling 4,900 units per month. Fixed expenses are $208,000 per month. The marketing manager believes that a $6,700 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect...
Mossfeet Shoe Corporation is a single product firm. The company is predicting that a price increase next year will not cause unit sales to decrease. What effect would this price increase have on the following items for next year? Contribution Break-even Sales (8,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $320,000 192,000 128,000 118,400 $ 9,600
Chapter 6 Qu Help Save & Exit Sub 1 Mosstoot Shoe Corporation is a single product im The company is predicting that a price increase next year will not cause unitses to decrease What effect would this price increase have on the following rems for next year? 50 A) 8) C) D) Contribution Margin Ratio Increase Decrease Increase Decrease Break even Point Decrease Decrease Neffect No effect Mpt Chee Choice A A Choce B Coco
Which of the following is an assumption underlying standard CVP analysis? Multiple Choice The price of a product or service is expected to change as volume changes. 0 Fixed expenses will change as volume increases. In multiproduct companies, the sales mix is constant. С C In manufacturing companies, inventories always change. If sales volume increases and all other factors remain constant, then the: Multiple Choice net operating income will decrease. O margin of safety will increase. contribution margin ratio will...
Awtis Corporation has a margin of safety percentage of 25% based on its actual sales. The break-even point is $366,000 and the variable expenses are 45% of sales. Given this information, the actual profit is: Multiple Choice Ο Ο 697600 Ο $67100 Ο $18,300 Ο $50,325 Kuzio Corporation produces and sells a single product. Data concerning that product appear below Selling price Variable expenses Contribution margin Per Unit $140 56 $ 84 Percent of Sales 100% 40% 60% The company...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $ 150 75 $ 75 Percent of Sales 100% 50% 50% The company is currently selling 6,500 units per month. Fixed expenses are $206,000 per month The marketing manager believes that a $6,300 increase in the monthly advertising budget would result in a 100 unit increase in monthly sales. What should be the overall effect on the company's...
Help Save & Exit Submit Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit $130 Percent of Sales 1008 509 Selling price Variable expenses Contribution margin $ 65 The company is currently selling 6,000 units per month. Fixed expenses are $214,000 per month. The marketing manager believes that a $7.200 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales. What should be the overall effect on...
East Company manufactures and sells a single product with a positive contribution margin. If the selling price and the variable expense per unit both increase 5% and fixed expenses do not change, what is the effect on the contribution margin per unit and the contribution margin ratio? Contribution Margin per Unit No change Increase Contribution Margin Ratio No change Increase No change Decrease C. Increase Increase Multiple Choice Option a. Option b. Option c. Option d.
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $130 78 $ 52 Percent of Sales 100% 60% 40% The company is currently selling 6,800 units per month. Fixed expenses are $180,000 per month. The marketing manager believes that a $8,000 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales. What should be the overall effect on the company's monthly...
Abensan Company sells a single product. If both the selling price and variable cost per unit increase by 5% and fixed costs remain steady, then contribution margin per unit and break- even point in units will, respectively, decrease and increase. increase and remain unchanged. decrease and remain unchanged. O increase and decrease.
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