Homework Answers
*Any doubt please comment
1. Option, At the breakeven point, total sales revenue equals total costs. [ At this point profit is zero]
2. Option, Oil disposal fees for an automotive maintenance company, Including a $100 base fee plus a usage too. The usage fee is scaled to encourage waste reduction up to 10 barrels costs $10 per barrel.....
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Which of the following statements about cost-volume-profit analysis is true? If a company expands operations outside...
Which of the following statements about cost-volume-profit analysis is true? To increase the contribution margin ratio,...
Which of the following statements about cost-volume-profit analysis is true? To increase the contribution margin ratio, a manager should decrease fixed cost. The contribution margin ratio represents the percentage of sales revenue available to contribute towards covering variable and fixed costs. At the breakeven point, total sales revenue equals total costs. If a company expands operations outside of its relevant range, variable cost per unit could change, but total fixed costs will always stay constant.
Which of the following statements about cost-volume-profit analysis is true? To increase the contribution margin ratio,...
Which of the following statements about cost-volume-profit analysis is true? To increase the contribution margin ratio, a manager should decrease fixed cost The contribution margin ratio represents the percentage of sales revenue available to contribute towards covering variable and fixed costs If a company expands operations outside of its relevant range, variable cost per unit could change, but total fixed costs will always stay constant ОО At the breakeven point total sales revenue equals total costs
Chapter 3 - Journal Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations...
Chapter 3 - Journal Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations where Profit equals zero. EXERCISE 1: Abner Corporation makes a product that sells for $200 per unit. The Variable Costs per unit are $120. Fixed Costs total $500,000 each year. Abner currently sells 7,500 units per year. Calculate the number of units that Abner must sell to break even. Use the equation method to solve for the number of units Abner needs to sell...
Which of the following statements are true when making decisions using cost volume profit analysis? A....
Which of the following statements are true when making decisions using cost volume profit analysis? A. As long as the contribution margin is a positive number, net income will be positive B. As long as variable costs are more then fixed costs, net income will be negative C. As long as the contribution margin is greater than the fixed costs, net income will be positive D. As long as the sales price per unit is greater than fixed costs per...
A A A Aa A A2A Styles Dictate ! Styles Pane Term Cost-volume- profit analysis Definition...
A A A Aa A A2A Styles Dictate ! Styles Pane Term Cost-volume- profit analysis Definition The proportion of products based upon the number of units sold. The proportion of products sold based on total sales revenue. Analysis that focuses on relationships among revenue, volume, mix of units sold, variable and fixed costs. Analysis that focuses on determining the number of units or " sales revenue required to generate a desired net income Analysis that focuses on determining the number...
H8 5 Unit 2 Cost Volume Profit 6 Read Chapter 18 Problem 3 Frost Fire Company...
H8 5 Unit 2 Cost Volume Profit 6 Read Chapter 18 Problem 3 Frost Fire Company is analyzing two alternative methods of manufacturing is custom snowboards. The Managerial Accountant has performed an analysis that indicates that variable costs can be reduced 40% by installing a machine that would automate production, but fixed costs would increase to $675,000. Analysis 1 shows costs before installing the machine; Analysis 2 shows costs after the machine is installed. If Analysis 2 is selected, Management...
Mastery Problem: Cost-Volume-Profit Analysis Cost Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books....
Mastery Problem: Cost-Volume-Profit Analysis Cost Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. Total Total Total Machine Units Lumber Utilities Depreciation Produced Cost Cost 11,000 shelves $132,000 $14,150 $140,000 22,000 shelves 264,000 26,800 140,000 44,000 shelves 528,000 52,100 140,000 55,000 shelves 660,000 64,750 140,000 1. Determine whether the costs...
Format Painte Clipboard Alignment AALS : X for Bc - Unit Cost Volume Profit Read Chapter...
Format Painte Clipboard Alignment AALS : X for Bc - Unit Cost Volume Profit Read Chapter 18 Problem 2 Jefff Fargo owns Fargo Quick Lube and Oil. Jeff wants to know what his monthly break even sales are and what is Margin of Safety Ratio is. On average Fargo's Quick Lube performs 950 total services at an average cost of $50 each. Monthly Fixed costs are 11,200 El 21 Variable costs were 60% of sales 1 Calculate the contribution margin...
Mastery Problem: Cost-Volume-Profit Analysis Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books. The...
Mastery Problem: Cost-Volume-Profit Analysis Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. Total Total Total Machine Units Lumber Utilities Depreciation Produced Cost Cost Cost 7,000 shelves $84,000 $9,550 $120,000 14,000 shelves 168,000 17,600 120,000 28.000 shelves 336,000 33,700 120,000 35,000 shelves 420,000 41,750 120,000 1. Determine whether the costs...
Basic Cost-Volume-Profit Concepts Klamath Company produces a single product. The projected income statement for the coming...
Basic Cost-Volume-Profit Concepts Klamath Company produces a single product. The projected income statement for the coming year is as follows: $2,026,200 Sales (61,400 units @ $33.00) Total variable cost 1,337,292 Contribution margin $ 688,908 Total fixed cost 743,886 Operating income $(54,978) Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Unit contribution margin Break-even units units 2. Suppose 10,000 units are sold above breakeven. What is the operating income? 3. Compute the...
Which of the following statements about cost-volume-profit analysis is true? To increase the contribution margin ratio, a manager should decrease fixed cost The contribution margin ratio represents the percentage of sales revenue available to contribute towards covering variable and fixed costs If a company expands operations outside of its relevant range, variable cost per unit could change, but total fixed costs will always stay constant ОО At the breakeven point total sales revenue equals total costs
Chapter 3 - Journal Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations where Profit equals zero. EXERCISE 1: Abner Corporation makes a product that sells for $200 per unit. The Variable Costs per unit are $120. Fixed Costs total $500,000 each year. Abner currently sells 7,500 units per year. Calculate the number of units that Abner must sell to break even. Use the equation method to solve for the number of units Abner needs to sell...
A A A Aa A A2A Styles Dictate ! Styles Pane Term Cost-volume- profit analysis Definition The proportion of products based upon the number of units sold. The proportion of products sold based on total sales revenue. Analysis that focuses on relationships among revenue, volume, mix of units sold, variable and fixed costs. Analysis that focuses on determining the number of units or " sales revenue required to generate a desired net income Analysis that focuses on determining the number...
H8 5 Unit 2 Cost Volume Profit 6 Read Chapter 18 Problem 3 Frost Fire Company is analyzing two alternative methods of manufacturing is custom snowboards. The Managerial Accountant has performed an analysis that indicates that variable costs can be reduced 40% by installing a machine that would automate production, but fixed costs would increase to $675,000. Analysis 1 shows costs before installing the machine; Analysis 2 shows costs after the machine is installed. If Analysis 2 is selected, Management...
Mastery Problem: Cost-Volume-Profit Analysis Cost Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. Total Total Total Machine Units Lumber Utilities Depreciation Produced Cost Cost 11,000 shelves $132,000 $14,150 $140,000 22,000 shelves 264,000 26,800 140,000 44,000 shelves 528,000 52,100 140,000 55,000 shelves 660,000 64,750 140,000 1. Determine whether the costs...
Format Painte Clipboard Alignment AALS : X for Bc - Unit Cost Volume Profit Read Chapter 18 Problem 2 Jefff Fargo owns Fargo Quick Lube and Oil. Jeff wants to know what his monthly break even sales are and what is Margin of Safety Ratio is. On average Fargo's Quick Lube performs 950 total services at an average cost of $50 each. Monthly Fixed costs are 11,200 El 21 Variable costs were 60% of sales 1 Calculate the contribution margin...
Mastery Problem: Cost-Volume-Profit Analysis Cost Behavior Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. Total Total Total Machine Units Lumber Utilities Depreciation Produced Cost Cost Cost 7,000 shelves $84,000 $9,550 $120,000 14,000 shelves 168,000 17,600 120,000 28.000 shelves 336,000 33,700 120,000 35,000 shelves 420,000 41,750 120,000 1. Determine whether the costs...
Basic Cost-Volume-Profit Concepts Klamath Company produces a single product. The projected income statement for the coming year is as follows: $2,026,200 Sales (61,400 units @ $33.00) Total variable cost 1,337,292 Contribution margin $ 688,908 Total fixed cost 743,886 Operating income $(54,978) Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Unit contribution margin Break-even units units 2. Suppose 10,000 units are sold above breakeven. What is the operating income? 3. Compute the...
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