Homework Answers
| Let us assune current selling price to be $100 | ||
| Current sales unit = Sales / Selling price = 5000 / 100 = | 50 | units |
| Variable cost per unit = Selling price * ( 1 - Contribution margin ) = 100 * ( 1 - 60% ) = | 40 | |
| Expected sales units in 2020 = Current sales unit * ( 1 + 30% ) = 50 * ( 1 + 30% ) = | 65 | units |
| Selling price in 2020 = Current selling price * ( 1 - 10% ) = 100 * ( 1 - 10% ) = | 90 |
| 2019 | |
| Sales | 5000 |
| (-) Variable cost [ 40*50 ] | 2000 |
| Contribution margin | 3000 |
| 2020 | |
| Sales [ 90*65 ] | 5850 |
| (-) Variable cost [ 40*65 ] | 2600 |
| Contribution margin | 3250 |
| Answer : Option C [ $250 Decrease ] |
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8 The company recorded $5.000 sales with 60% contribution margin ratio in 2019. According to the...
Percent of Selling price Variable expenses Contribution margin Per Unit $150 60 $ 90 Sales 1008...
Percent of Selling price Variable expenses Contribution margin Per Unit $150 60 $ 90 Sales 1008 40% 60% The company is currently selling 5,200 units per month. Fixed expenses are $208,000 per month. The marketing manager believes that a $6,600 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice decrease of $6,900 decrease of $6,600...
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Contribution Margin, Break-Even Units, Break-Even Sales, Margin of Safety, Degree of Operating Leverage Aldovar Company produces...
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please I am having a lot of problems with the questions above .I am getting ready for the final this week.Can you please answer all of them . Tab 07) How many of the following events would requ...
please I am having a lot of problems with the questions above .I
am getting ready for the final this week.Can you please answer all
of them .
Tab 07) How many of the following events would require an expense to be recorded? Ordering office supplies Hiring a receptionist Paying employces' salaries for the current month Receiving but not paying a current utility bill Paying for insurance in advance A) One D)Iwo. C) Three. B) Four 08) The balance sheet...
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please I am having a lot of problems with the questions above .I
am getting ready for the final this week.Can you please answer all
of them .
Tab 07) How many of the following events would require an expense to be recorded? Ordering office supplies Hiring a receptionist Paying employces' salaries for the current month Receiving but not paying a current utility bill Paying for insurance in advance A) One D)Iwo. C) Three. B) Four 08) The balance sheet...
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