5- |
D |
increase the fixed cost and decrease the contribution margin |
|
6- |
sales |
100000 |
|
variable cost = sales-contribution |
25000 |
||
contribution |
75000 |
||
fixed cost |
30000 |
||
Operating profit |
45000 |
||
variable cost per unit = total variable cost/no of units |
25000/20000 |
1.25 |
|
7- |
variable cost per Unit = (cost at higher level-cost at lower level)/(units at higher level -units at lower level) |
(28892-28221)/(12088-11193) |
0.750 |
Answer is D |
5. (CPA adapted) The changes MOST likely to increase the breakeven point would be to: a....
Which of the following changes would cause a company’s breakeven point in sales to increase? A-The company’s variable cost per unit decreases. B-The company’s contribution-margin rate increases. C-The company’s total fixed costs increases. D-The company’s selling price per unit increases.
Which of the following changes would cause a company’s breakeven point in sales to increase? A) The company’s total fixed costs increases. B)The company’s variable cost per unit decreases. C) The company’s contribution-margin rate increases. D) The company’s selling price per unit increases.
Supply costs at Lattea Corporation's chain of gyms are listed below: Client-Visits Supply Cost March 11,654 $28,568 April 11,450 $28,402 May 11,982 $28,826 June 12,700 $28,906 July 11,714 $28,629 August 11,200 $28,228 September 11,994 $28,827 October 11,685 $28,585 November 11,833 $28,710 Management believes that supply cost is a mixed cost that depends on client-visits. Use the high-low method to estimate the variable...
Example 48: Fill in the effects of each of the following on breakeven point, operating income and net income using: 1 = increase, D = Decrease, NC = No Change. Breakeven point in units Net Income Breakeven point in dollars Operating Income Contribution Margin in dollars Contribution Margin Ratio Increase variable costs per unit Decrease variable costs per unit Increase variable costs in total Decrease variable costs in total Increase fixed costs Decrease fixed costs Increase selling price Decrease selling...
If a company is currently operating at its breakeven point, which of the following statements is true? Multiple Choice 1 0 if fixed costs increase, net income will decrease by the contribution margin ratio times the amount of the increase in fixed costs. 0 if sales increase by 20%, net income will also increase by 20%, assuming that fixed costs are not equal to zero. 0 if variable costs double, net income will decrease by 50%. 0 if sales decrease,...
Example 23: Fill in the effects of each of the following on breakeven point, operating income and net income using: I = increase, D = Decrease, NC = No Change. Breakeven point Operating Income Net Income Contribution Margin Increase variable costs per unit Decrease variable costs per unit Increase variable costs in total Decrease variable costs in total Increase fixed costs Decrease fixed costs Increase selling price Decrease selling price Increase units sold Decrease units sold Increase tax rate Decrease tax rate
Show All Your Works How You Do It: Calculate the new breakeven point in Requirement 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: Requirements -X Data Table 20.00 Sales price per unit: (current monthly sales volume is 120,000 units) .... $ Variable costs per unit: Direct materials ...........$ 740 1. What is the company's contribution...
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, 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
Requirement 1. Determine the coffee shop's monthly breakeven
point in the numbers of small coffees and large coffees. Prove your
answer by preparing a summary contribution margin income statement
at the breakeven level of sales. Show only two categories of
expenses: variable and fixed. Begin by identifying the formula to
compute the total breakeven point in units. (Abbreviations used:
avg. = Average; CM = Contribution margin.) ( Fixed expenses +
Operating income ) / ▼ = Breakeven sales in units...