Homework Answers
The answer is
More higher contribution margin units are sold than lower contribution margin
Higher contribution margin leads to higher net income
Income will be lower when more of lower contribution margjn units are sold or when weighted average contribution margin decreases or when more fixed expenses are incurred
As net income = contribution margin- fixed costs
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QUESTION 15 In a sales mix situation, at any level of units sold, net income will...
QUESTION 15 In a sales mix situation, at any level of units sold, net income will...
QUESTION 15 In a sales mix situation, at any level of units sold, net income will be higher if more higher contribution margin units are sold than lower contribution margin units. more lower contribution margin units are sold than higher contribution margin units. more fixed expenses are incurred. weighted average unit contribution margin decreases.
Show All Your Works For Your Response: Calculate Sales mix in units and Calculate Contribution margin...
Show All Your Works For Your Response: Calculate Sales mix in units and Calculate Contribution margin Peppy Quadcopters plans to sell a standard quadcopter (toy drone) for $70 and a deluxe quadcopter for $100. Peppy purchases the standard quadcopter for $50 and the deluxe quadcopter for $80. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $22,000. How many of each type of quadcopter must Peppy sell monthly to breakeven? To...
Miller Company's most recent contribution format income statement is shown below: Sales (32.000 units) Variable expenses...
Miller Company's most recent contribution format income statement is shown below: Sales (32.000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $224,000 128,000 96,000 47,000 $ 49,000 Per Unit $7.00 4.00 $3.00 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): (Do not round intermediate calculations. Round your "Per unit" answers to 2 decimal places.) 1. The number of units sold increases by 12%. Per Unit Miller Company...
QUESTION 27 When sales dollars increase, the net income of a company with a high degree...
QUESTION 27 When sales dollars increase, the net income of a company with a high degree of operating leverage will increase more quickly than in a company with a lower operating leverage. However, when sales dollars decrease, the net income of a company with a high degree of operating leverage will decrease more quickly than in a company with a lower operating leverage. True O False QUESTION 28 Jen & Berry's currently sells 100,000 pints of ice cream per month...
Sales (45,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $360,000 225,000 135,000...
Sales (45,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $360,000 225,000 135,000 40,000 $ 95,000 Per Unit $8.00 5.00 $ 3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 13%? 2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by 15%? 3. What is the revised net operating income if the...
Show All Your Works How Do You Solve It: Calculate Sales mix and Contribution margin for...
Show All Your Works How Do You Solve It: Calculate Sales mix and Contribution margin for 256GB in Requirement 10 GigaCo Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Price and cost data for a relevant range extending to 200,000 units per month are as follows: i Requirements - X Data Table - X 20.00 7.40 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? 2. What...
Assuming that Luxury Cruiseline expects to sell four reguiar oruises for every axecutive cruise, compute the...
Assuming that Luxury Cruiseline expects to sell four reguiar oruises for every axecutive cruise, compute the weighted-average contribution margin per unit is it higher or lower than a simple average contribution margin? (A simple average is calouiated by adding both contribution margins per passenger together and dividing by two.) Why? is it higher or lower than the regular cnuise contributon margin of $407 Why? Wl this new sales mix cause Luxury Cruiseline's breakeven point to increase or decrease from what...
1. What is the revised net operating income if unit sales increase by 16%? 2. What...
1. What is the revised net
operating income if unit sales increase by 16%?
2. What is the revised net operating income if the selling price
decreases by $1.30 per unit and the number of units sold increases
by 21%?
3. What is the revised net operating income if the selling price
increases by $1.30 per unit, fixed expenses increase by $5,000, and
the number of units sold decreases by 7%?
4. What is the revised net operating income if...
1. A company sold a total of 1,000 units for total sales revenue of $65,000. The...
1. A company sold a total of 1,000 units for total sales revenue of $65,000. The company incurred total variable expenses of $45,500 and total fixed expenses of $ 14,040. Based on this, the company reported a total contribution margin of $19,500 and net operating income of $ 5,460. Use this information to answer the following questions. Assume that all units are within the relevant range. Calculate the per-unit contribution margin. (Round your answer to 2 decimal places.)? Calculate the...
Problem 4-14 Culver Tennis Racquet Co. produces and sells three models: Units sold Sales Less variable...
Problem 4-14 Culver Tennis Racquet Co. produces and sells three models: Units sold Sales Less variable costs Contribution margin Less common fixed costs Profit Smasher 2,000 $160,300 73,800 $86,500 Basher 3,200 $168,100 69,600 $98,500 Dinker 3 ,200 $117,400 35,600 $81,800 Total 8,400 $445,800 179,000 266,800 141,900 $124,900 What is the weighted average contribution margin per unit? (Round answer to 2 decimal places, e.g. 15.25.) Weighted average contribution margins per unit LINK TO TEXT Calculate the break-even point in units assuming...
QUESTION 15 In a sales mix situation, at any level of units sold, net income will be higher if more higher contribution margin units are sold than lower contribution margin units. more lower contribution margin units are sold than higher contribution margin units. more fixed expenses are incurred. weighted average unit contribution margin decreases.
Show All Your Works For Your Response: Calculate Sales mix in units and Calculate Contribution margin Peppy Quadcopters plans to sell a standard quadcopter (toy drone) for $70 and a deluxe quadcopter for $100. Peppy purchases the standard quadcopter for $50 and the deluxe quadcopter for $80. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $22,000. How many of each type of quadcopter must Peppy sell monthly to breakeven? To...
Miller Company's most recent contribution format income statement is shown below: Sales (32.000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $224,000 128,000 96,000 47,000 $ 49,000 Per Unit $7.00 4.00 $3.00 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): (Do not round intermediate calculations. Round your "Per unit" answers to 2 decimal places.) 1. The number of units sold increases by 12%. Per Unit Miller Company...
QUESTION 27 When sales dollars increase, the net income of a company with a high degree of operating leverage will increase more quickly than in a company with a lower operating leverage. However, when sales dollars decrease, the net income of a company with a high degree of operating leverage will decrease more quickly than in a company with a lower operating leverage. True O False QUESTION 28 Jen & Berry's currently sells 100,000 pints of ice cream per month...
Sales (45,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $360,000 225,000 135,000 40,000 $ 95,000 Per Unit $8.00 5.00 $ 3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 13%? 2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by 15%? 3. What is the revised net operating income if the...
Show All Your Works How Do You Solve It: Calculate Sales mix and Contribution margin for 256GB in Requirement 10 GigaCo Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Price and cost data for a relevant range extending to 200,000 units per month are as follows: i Requirements - X Data Table - X 20.00 7.40 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? 2. What...
Assuming that Luxury Cruiseline expects to sell four reguiar oruises for every axecutive cruise, compute the weighted-average contribution margin per unit is it higher or lower than a simple average contribution margin? (A simple average is calouiated by adding both contribution margins per passenger together and dividing by two.) Why? is it higher or lower than the regular cnuise contributon margin of $407 Why? Wl this new sales mix cause Luxury Cruiseline's breakeven point to increase or decrease from what...
1. What is the revised net
operating income if unit sales increase by 16%?
2. What is the revised net operating income if the selling price
decreases by $1.30 per unit and the number of units sold increases
by 21%?
3. What is the revised net operating income if the selling price
increases by $1.30 per unit, fixed expenses increase by $5,000, and
the number of units sold decreases by 7%?
4. What is the revised net operating income if...
Problem 4-14 Culver Tennis Racquet Co. produces and sells three models: Units sold Sales Less variable costs Contribution margin Less common fixed costs Profit Smasher 2,000 $160,300 73,800 $86,500 Basher 3,200 $168,100 69,600 $98,500 Dinker 3 ,200 $117,400 35,600 $81,800 Total 8,400 $445,800 179,000 266,800 141,900 $124,900 What is the weighted average contribution margin per unit? (Round answer to 2 decimal places, e.g. 15.25.) Weighted average contribution margins per unit LINK TO TEXT Calculate the break-even point in units assuming...
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