Homework Answers
Ans. Option B
Explanation: Contribution margin per unit (which is the difference between selling price per unit and variable cost per unit) will Increase because an increase in selling price per unit is greater than the increase in variable cost per unit.
Break even volume will decrease due to this changes (increase in contribution margin per unit and decrease in fixed cost) because fixed cost is used as numerator and contribution margin per unit is used as denominator in the calculation of break even volume.
However, decrease in numerator and increase in denominator will decrease the result (break even volume).
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20. If total fixed costs decrease by $5,000, selling price per unit increases by $2, and...
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...
4. When the selling price per unit and variable costs per unit remain constant, if total...
4. When the selling price per unit and variable costs per unit remain constant, if total fixed costs decrease, which of the following statements is true? A. Breakeven point in units increases. C. Breakeven point in units decreases B. Contribution margin decreases. D. Contribution margin increases. lace Furniture sells two products, tables and chairs. A table sells for $80 per unit riable costs of $25 per unit. A chair sells for $60 per unit with variable costs of Total fixed...
$84 per unit. selling expenses are $12 per unit, annual fixed manufacturing costs are $470,000, and...
$84 per unit. selling expenses are $12 per unit, annual fixed manufacturing costs are $470,000, and fixed selling and Determine the break-even point in units and dollars using each of the following approaches: b. Use the c eferencesd. Prepare a Req A to C 29 5 Ritchie Manufacturing Company makes a product that it sells for $160 per unit. The company incurs variable manufacturin $84 per unit. Variable selling expenses are $12 per unit, annual fixed manufacturing costs are $470,000,...
Which of the following statement is true? Increases in fixed costs increase the break-even point. Increases...
Which of the following statement is true? Increases in fixed costs increase the break-even point. Increases in the unit selling price decrease the break-even point. Increases in unit variable costs increase the break-even point. All of the above. Question 32 (2 points) The capital expenditures budget summarizes plans for acquiring fixed assets. True False
Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L06-4) [The...
Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L06-4) [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 90 63 $ 27 Percent of Sales 1009 70 304 Fixed expenses are $78,000 per month and the company is selling 3,500 units per month Exercise 6-5 Part 2 2-a. Refer to the original data. How much will net operating...
The following information exists for ABC Company: Selling price per unit: $30 Variable expenses per...
The following information exists for ABC Company: Selling price per unit: $30 Variable expenses per unit: $21 Fixed expenses for the period: $60,000 Sales volume in units: 10,000 1. If advertising of $15,000 is spent to increase sales volume by 2,000 units, operating income will increase by ?? 2. Based on the information given above, ABC Company's contribution margin ratio will be ?? ------------------------------------------------------------------------------------------ The following information exists for ABC Company: Selling price per unit = $60 Variable expenses...
Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs...
Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs (LO5-1, LO5-4) Meer Company's contribution format income statement for the most recent month is shown below. Per Unit $10.00 Sales (33.000 nits) Variable expenses Contribution margin Fixed expenses perating con Required: (Consider each case independently 1 What is the revised net operating income funit sales increase by 10%? 2 What is the revised net operating income of the selling price decreases by $150 per...
Exercise 6-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs...
Exercise 6-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO6-1, LO6-4] Miller Company's contribution format income statement for the most recent month is shown below: Sales (31,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $186,000 93,000 93,000 44,000 $ 49,000 Per Unit $6.00 3.00 $3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 2. What is the revised...
Megan Company has fixed costs of $1,675,000. The unit selling price, variable cost per unit, and...
Megan Company has fixed costs of $1,675,000. The unit selling
price, variable cost per unit, and contribution margin per unit for
the two company's follow:
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,675,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Model Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $880 $440 $440 Zoro 620 480 The sales mix for products...
Problem 11-4 NYM Manufacturing Company makes a product. Selling Price per unit Variable manufacturing cost per unit Variable selling expense per unit (sales commissions) Annual Fixed Manufacturing Co...
Problem 11-4 NYM Manufacturing Company makes a product. Selling Price per unit Variable manufacturing cost per unit Variable selling expense per unit (sales commissions) Annual Fixed Manufacturing Costs Annual Fixed Selling and Admin Costs 150 80 25 40,000 s 60,000 REQUIRED Determine the break-even point in units and dollars using the following approaches. 1 Equation method 2 Contribution margin per unit. 3 Contribution margin ratio. 4 Confirm your results by preparing a contribution margin income statement for the breakeven sales...
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...
4. When the selling price per unit and variable costs per unit remain constant, if total fixed costs decrease, which of the following statements is true? A. Breakeven point in units increases. C. Breakeven point in units decreases B. Contribution margin decreases. D. Contribution margin increases. lace Furniture sells two products, tables and chairs. A table sells for $80 per unit riable costs of $25 per unit. A chair sells for $60 per unit with variable costs of Total fixed...
$84 per unit. selling expenses are $12 per unit, annual fixed manufacturing costs are $470,000, and fixed selling and Determine the break-even point in units and dollars using each of the following approaches: b. Use the c eferencesd. Prepare a Req A to C 29 5 Ritchie Manufacturing Company makes a product that it sells for $160 per unit. The company incurs variable manufacturin $84 per unit. Variable selling expenses are $12 per unit, annual fixed manufacturing costs are $470,000,...
Which of the following statement is true? Increases in fixed costs increase the break-even point. Increases in the unit selling price decrease the break-even point. Increases in unit variable costs increase the break-even point. All of the above. Question 32 (2 points) The capital expenditures budget summarizes plans for acquiring fixed assets. True False
Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L06-4) [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 90 63 $ 27 Percent of Sales 1009 70 304 Fixed expenses are $78,000 per month and the company is selling 3,500 units per month Exercise 6-5 Part 2 2-a. Refer to the original data. How much will net operating...
Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs (LO5-1, LO5-4) Meer Company's contribution format income statement for the most recent month is shown below. Per Unit $10.00 Sales (33.000 nits) Variable expenses Contribution margin Fixed expenses perating con Required: (Consider each case independently 1 What is the revised net operating income funit sales increase by 10%? 2 What is the revised net operating income of the selling price decreases by $150 per...
Exercise 6-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO6-1, LO6-4] Miller Company's contribution format income statement for the most recent month is shown below: Sales (31,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $186,000 93,000 93,000 44,000 $ 49,000 Per Unit $6.00 3.00 $3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 2. What is the revised...
Megan Company has fixed costs of $1,675,000. The unit selling
price, variable cost per unit, and contribution margin per unit for
the two company's follow:
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,675,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Model Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $880 $440 $440 Zoro 620 480 The sales mix for products...
Problem 11-4 NYM Manufacturing Company makes a product. Selling Price per unit Variable manufacturing cost per unit Variable selling expense per unit (sales commissions) Annual Fixed Manufacturing Costs Annual Fixed Selling and Admin Costs 150 80 25 40,000 s 60,000 REQUIRED Determine the break-even point in units and dollars using the following approaches. 1 Equation method 2 Contribution margin per unit. 3 Contribution margin ratio. 4 Confirm your results by preparing a contribution margin income statement for the breakeven sales...
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