Sales revenue will increase by = $60000 | |||||
Variable cost will increase by = $110000/440000*60000 | |||||
=$15000 | |||||
Therefore operating income will increase by = $60000-15000 | |||||
=$45000 | |||||
Correct Option : b.$45000 | |||||
Note: There will be no impact of increase in sales on fixed cost. | |||||
8. JAG Corp. sells software during the recruiting seasons. During the current year, 11,000 software units...
Tally Corp. sells software during the recruiting seasons. During the current year, 10,000 software packages were sold resulting in $470,000 of sales revenue, $130,000 of variable costs, and $48,000 of fixed costs.If sales increase by $80,000, operating income will increase by ________. (Round interim calculations to two decimal places and the final answer to the nearest whole dollar.) A.$48,000 B.$30,588 C.$57,872 D.$32,000 While−You−Train is a not−for−profit organization that aids the unemployed by supplementing their incomes by $7,000 annually, while they...
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echtronics Software, Inc. specializes in customized spreadsheet software. The results of the company's operations during the prior year (20xx) are given in the following table. All units produced during the year were sold. (Ignore income taxes.) Sales revenue Manufacturing costst Fixed Variable Selling costs: Fixed Variable Administrative costs Fixed Variable $3,200,000 510,000 1,020,000 52,000 110,000 122,000 32,000 Required 1-a. Prepare a traditional income statement for the company 1-b. Prepare a contribution income statement for the company. 2. What is the...
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SaleCo sells 8,400 units resulting in $110,000 of sales revenue, $50,000 of variable costs, and $45,000 of fixed costs. The contribution margin percentage is A. 59.09% OB. 54.55% O C. 13.64% OD. 45.45% V افع نامه های ما با صدای
Asteroid Jewelry sells 200 units resulting in $40,000 of sales revenue, $15,000 of variable costs, and $2,500 of fixed costs. If Asteroid Jewelry would like to achieve $10,000 of operating income, approximately how many units must be sold? Group of answer choices 89 80 100 162
Units: Contribution Margin Fixed Costs Operating Income Sales Revenue Variable Costs SafeNow sells its main product, ergonomic mouse pads, for $13 each. Its variable cost is $5.10 per pad. Fixed costs are $205,000 per month for volumes up to 65,000 pads. Above 65,000 pads, monthly fixed costs are $260,000. Prepare a monthly flexible budget for the product, showing sales revenue, variable costs, fixed costs, and operating income for volume levels of 40,000, 45,000, and 75,000 pads. SafeNow Flexible Budget Budget...
Sky High sells helicopters. During the current year, 130130 helicopters were sold resulting in $ 820 comma 000$820,000 of sales revenue, $ 260 comma 000$260,000 of variable costs, and $ 350 comma 000$350,000 of fixed costs. Breakeven point in units is _______. A. 6161 units B. 9797 units C. 5656 units D. 8282 units
Last year, Walsh Company manufactured 25,000 units and sold 22,000 units. Production costs were as follows: Direct Materials - $100,000, Direct Labour $75,000, Variable Manufacturing Overhead - $50,000, Fixed Manufacturing Overhead -$75,000. Total sales were $440,000, total variable selling and administrative expenses were $110,000, and total fixed selling and administrative expenses were $45,000. There was no beginning inventory. Assume that direct labour is a variable cost. What was the operating income under variable costing? OA) $2,000. B) $9,000. C) $12,000...
The Doral company manufactures and sells pens. 5,600,000 units are sold per year at $0.50 per unit. Fixed costs are $870,000 per year. Variable costs = $0.30 per unit. 1. What is the current breakeven point in revenues? 2. A $0.05 per unit increase in variable costs results in a new operating (income or loss?) of $? 3. A 10% increase in fixed costs and a 10% increase in units sold results in a new operating (income or loss?) of...