Variable costs as a percentage of sales for Lemon Inc. are 72%, current sales are $681,000,...
Variable costs as a percentage of sales for Lemon Inc. are 72%, current sales are $681,000, and fixed costs are $205,000. How much will operating income change if sales increase by $40,400?
a.$29,088 increase
b.$11,312 decrease
c.$11,312 increase
d.$29,088 decrease
Homework Answers
Answer: C) $ 11,312 Increase
Change in Operating income:
Increase in Sales : $ 40,400
Increase in Operating income = Increase in sales * ( CM Ratio )
Increase in Operating income = $ 40,400*(1-72%) = $40,400*28% = $11,312 Increase (Answer)
Add Answer to:
Variable costs as a percentage of sales for Lemon Inc. are 72%,
current sales are $681,000,...
Variable costs as a percentage of sales for Lemon Inc. are 73%, current sales are $647,000,...
Variable costs as a percentage of sales for Lemon Inc. are 73%, current sales are $647,000, and fixed costs are $190,000. How much will operating income change if sales increase by $37,200? a. $10,044 increase b. $27,156 increase c. $27,156 decrease d. $10,044 decrease If sales are $828,000, variable costs are 80% of sales, and operating income is $209,000, what is the contribution margin ratio? a. 20% b. 80% c. 24% d. 76% Strait Co. manufactures office furniture. During the...
Accounting 202 Managerial Accounting (1 )If the variable cost as a percentage of sales for lemon...
Accounting 202 Managerial Accounting (1 )If the variable cost as a percentage of sales for lemon Inc. are 80%, current sales are $600,000 and fixed costs are $130,000, calculate the change in operating income lemon inc's increase by $40, 000. (2) Now assume that lemon's tax rate is 30%, the variable costs as a percentage of sales is 80% and fixed costs are only $55,000. Determine the amount of sales dollars required for lemon to achieve a net income of...
Spice Inc.'s unit selling price is $48, unit variable costs are $35, fixed costs are $117,000,...
Spice Inc.'s unit selling price is $48, unit variable costs are $35, fixed costs are $117,000, and current sales are 10,000 units. How much will operating income change if sales increase by 6,000 units? a.$130,000 decrease b.$208,000 increase c.$78,000 increase d.$130,000 increase
Spice Inc.'s unit selling price is $46, unit variable costs are $36, fixed costs are $116,000,...
Spice Inc.'s unit selling price is $46, unit variable costs are $36, fixed costs are $116,000, and current sales are 9,000 units. How much will operating income change if sales increase by 5,500 units? a.$90,000 decrease b.$145,000 increase c.$55,000 increase d.$90,000 increase
calor Spice Inc.'s unit selling price is $46, the unit variable costs are $39, fixed costs...
calor Spice Inc.'s unit selling price is $46, the unit variable costs are $39, fixed costs are $101,000, and current sales are 10,800 units. How much will operating income change if sales increase by 5,400 units? a. $113,400 increase b. 575,600 Increase c. $37,800 increase d. $75,600 decrease
Spice Inc.'s unit selling price is $49, unit variable costs are $37, fixed costs are $112,000,...
Spice Inc.'s unit selling price is $49, unit variable costs are $37, fixed costs are $112,000, and current sales are 9,700 units. How much will operating income change if sales increase by 5,000 units? Da, $176,400 increase b. $116,400 decrease de $60,000 ncrease d. $116,400 Increase
1) 2) 3) 4) 5) When Isaiah Company has fixed costs of $103,530 and the contribution...
1)
2)
3)
4)
5)
When Isaiah Company has fixed costs of $103,530 and the contribution margin is $21, the break-even point is Oa. 5,700 units Ob. 12,420 units Oc.9,860 units Od. 4,930 units Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will operating income change if sales increase by $40,000? Oa. $8,000 decrease Ob. $30,000 decrease Oc. $30,000 increase Od. $8,000 increase Zipee Inc....
Spice Inc.'s unit selling price is $46, unit variable costs are $39, fixed costs are $117,000,...
Spice Inc.'s unit selling price is $46, unit variable costs are $39, fixed costs are $117,000, and current sales are 10,200 units. How much will operating income change if sales increase by 5,900 units? Oa. $112,700 increase Ob. $41,300 increase Oc. $71,400 decrease Od. $71,400 increase
QUESTION 3 Sales revenue is $7,000, total variable costs are 55.600, and total foxed costs are...
QUESTION 3 Sales revenue is $7,000, total variable costs are 55.600, and total foxed costs are $1,000. How much sales revenue does a firm need to achieve tarpet profit of $2,500? A $17.500 B. $12.500 C. $5,000 D. Not enough information QUESTION 4 Which of the following is most likely to be a variable cost? A Rent for CEO's office B. Depreciation on production equipment Cost of merchandise D. Factory supervisor's salary QUESTIONS Gamma Company has a selling price of...
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of...
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the protit change in the short term if you reduce the price to $46? A. decrease by $3,240 B. decrease by S840 C. no change D. increase by $360 E. increase by $1,800
Variable costs as a percentage of sales for Lemon Inc. are 73%, current sales are $647,000, and fixed costs are $190,000. How much will operating income change if sales increase by $37,200? a. $10,044 increase b. $27,156 increase c. $27,156 decrease d. $10,044 decrease If sales are $828,000, variable costs are 80% of sales, and operating income is $209,000, what is the contribution margin ratio? a. 20% b. 80% c. 24% d. 76% Strait Co. manufactures office furniture. During the...
calor Spice Inc.'s unit selling price is $46, the unit variable costs are $39, fixed costs are $101,000, and current sales are 10,800 units. How much will operating income change if sales increase by 5,400 units? a. $113,400 increase b. 575,600 Increase c. $37,800 increase d. $75,600 decrease
Spice Inc.'s unit selling price is $49, unit variable costs are $37, fixed costs are $112,000, and current sales are 9,700 units. How much will operating income change if sales increase by 5,000 units? Da, $176,400 increase b. $116,400 decrease de $60,000 ncrease d. $116,400 Increase
1)
2)
3)
4)
5)
When Isaiah Company has fixed costs of $103,530 and the contribution margin is $21, the break-even point is Oa. 5,700 units Ob. 12,420 units Oc.9,860 units Od. 4,930 units Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will operating income change if sales increase by $40,000? Oa. $8,000 decrease Ob. $30,000 decrease Oc. $30,000 increase Od. $8,000 increase Zipee Inc....
Spice Inc.'s unit selling price is $46, unit variable costs are $39, fixed costs are $117,000, and current sales are 10,200 units. How much will operating income change if sales increase by 5,900 units? Oa. $112,700 increase Ob. $41,300 increase Oc. $71,400 decrease Od. $71,400 increase
QUESTION 3 Sales revenue is $7,000, total variable costs are 55.600, and total foxed costs are $1,000. How much sales revenue does a firm need to achieve tarpet profit of $2,500? A $17.500 B. $12.500 C. $5,000 D. Not enough information QUESTION 4 Which of the following is most likely to be a variable cost? A Rent for CEO's office B. Depreciation on production equipment Cost of merchandise D. Factory supervisor's salary QUESTIONS Gamma Company has a selling price of...
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the protit change in the short term if you reduce the price to $46? A. decrease by $3,240 B. decrease by S840 C. no change D. increase by $360 E. increase by $1,800
Most questions answered within 3 hours.
-
8. Suppose that in a particular sample, the mean is 50 and the
standard deviation is...
asked 2 minutes ago -
customers are arriving to a shop according to Poisson process
with mean 6.6 customers/hour. What is...
asked 46 minutes ago -
Which of the following is an example of supply risk?
1. A change in the dynamics...
asked 6 minutes ago -
Do you believe that there has been moral progress in the past
thousand years of human...
asked 4 minutes ago -
Consider this reaction data:
T(k)
k(s^-1)
325
.399
775
.621
If you were going to graphically...
asked 16 minutes ago -
Riverisland Cold Storage, Inc. v. Fresno-Madera Prod. Ass'n
1. How did this ruling impact California in...
asked 20 minutes ago -
HI please answer all parts of my question. Thank you so much! I
will rate you!...
asked 19 minutes ago -
what is the difference between cis and trans. simplify it the
best as possible. Thank you!
asked 22 minutes ago -
1. t's believed that as many as 21% of adults over 50 never
graduated from high...
asked 56 minutes ago -
1. Explain how atmospheric sulfur trioxide (SO3)
decreases the pH of water in clouds and rain....
asked 36 minutes ago -
Which of the following statement is correct? A. The higher the
debt to total assets ratio...
asked 41 minutes ago -
How would you start a labor union in a manufacturing plant?
300 words or more
asked 44 minutes ago