Assume fixed costs = $835,000. Selling price = $14.00 and variable costs = $7.45. Calculate the...
Assume fixed costs = $835,000. Selling price = $14.00 and variable costs = $7.45. Calculate the dollar sales volume to achieve a return on sales of 14.3%.
Homework Answers
| Statement showing Computations | |
| Particulars | Amount |
| Let no of units sold be x | |
| Sales = 14*x | 14x |
| Variable costs | 7.45x |
| Contribution = 14x- 7.45x | 6.55x |
| Return on sales at 14.3%*14x | 2.0020x |
| Contribution = Fixed costs + Profit | |
| 6.55x = 2.002x + 835000 | |
| 4.548x = 835000 | |
| x= 183,597 Units | |
| Dollar sales Volume = 183597*14 | 2,570,358.00 |
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Assume fixed costs = $835,000. Selling price = $14.00 and
variable costs = $7.45. Calculate the...
Lec Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L06-4) [The following...
Lec 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 S 85 51 S 34 Percent of Sales 1008 60 400 Fixed expenses are $77,000 per month and the company is selling 2,600 units per month, Exercise 6-5 Part 1 Required: 1-a. How much will net operating income increase (decrease) per month...
1.Let us assume that fixed and variable costs remain constant, the decreases of selling price will...
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Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L06-4) [The...
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2. Let us assume that fixed and variable costs remain constant the decreases of selling price...
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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
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