Homework Answers
| Option C is the answer | |
|
Contribution margin per unit = Selling price per unit - Variable cost per cost. As both selling price and variable costs both increase, there will be increase in contribution margin per unit. Contribution margin ratio however doesn't change |
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East Company manufactures and sells a single product with a positive contribution margin. If the selling...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $ 150 75 $ 75 Percent of Sales 100% 50% 50% The company is currently selling 6,500 units per month. Fixed expenses are $206,000 per month The marketing manager believes that a $6,300 increase in the monthly advertising budget would result in a 100 unit increase in monthly sales. What should be the overall effect on the company's...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $130 78 $ 52 Percent of Sales 100% 60% 40% The company is currently selling 6,800 units per month. Fixed expenses are $180,000 per month. The marketing manager believes that a $8,000 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales. What should be the overall effect on the company's monthly...
Kuzlo Corporation produces and sells a single product. Data concerning that product appear below: Selling price...
Kuzlo Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $150 60 $ 90 Percent of Sales 100% 40% 608 The company is currently selling 7,000 units per month. Fixed expenses are $209,000 per month. The marketing manager believes that a $7100 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 130 100 % Variable expenses 65 50 % Contribution margin $ 65 50 % The company is currently selling 4,900 units per month. Fixed expenses are $208,000 per month. The marketing manager believes that a $6,700 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Percent of...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Percent of Sales 100% 40% Per Unit $130 52 $ 78 Selling price Variable expenses Contribution margin 60% The company is currently selling 5,000 units per month. Fixed expenses are $216,000 per month. The marketing manager believes that a $7,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly...
5). Cincinnati Supply Corp., a supplier to Kraft Foods, sells a single product at a selling...
5). Cincinnati Supply Corp., a supplier to Kraft Foods, sells a single product at a selling price of $40 per unit. Variable expenses are $22 per unit and fixed expenses are $82,800. The company's break-even point is: a).4,600 units b).3,764 units c). 2,070 units d). 5,000 units 6).Cincinnati Supply Corp., a supplier to Kraft Foods, produces and sells a single product. The company has provided its contribution format income statement for February. Q5,600 units Sales $358,400 Variable expense ...
Exercise 18-9 Contribution margin and break-even P2 Blanchard Company manufactures a single product that sells for...
Exercise 18-9 Contribution margin and break-even P2 Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The company's annual fixed costs are $562,500. Use this information to compute the company's (a) contribution margin, (b) contribution margin ratio, (c) break-even point in units, and (d) break-even point in dollars of sales.
Thornbrough Corporation produces and sells a single product with the following characteristics:
Thornbrough Corporation produces and sells a single product with the following characteristics: Per UnitPercent of salesSelling price$220100%Variable expenses4420 %Contribution margin$17680%The company is currently selling 7000 units per month Fixed expenses are $901.000 per month The marketing manager would like to cut the selling price by $18 and increase the advertising budget by $53,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 1000 units. What should be the overall effect on the company's monthly net operating...
Help Save & Exit Submit Kuzio Corporation produces and sells a single product. Data concerning that product ap...
Help Save & Exit Submit Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit $130 Percent of Sales 1008 509 Selling price Variable expenses Contribution margin $ 65 The company is currently selling 6,000 units per month. Fixed expenses are $214,000 per month. The marketing manager believes that a $7.200 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales. What should be the overall effect on...
Sorin Inc., a company that produces and sells a single product, has provided its contribution format...
Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January Sales (3,500 units) Variable expenses Contribution margin Fixed expenses Net operating income $94,500 41,580 52,920 40,700 $12,220 If the company sells 3,800 units, its total contribution margin should be closest to: (Do not round intermediate calculations.) Multiple Choice $52,920 $57456 $71,700 $13,267 Nocum Corporation has provided the following contribution format income statement. Assume that the following information is within the...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $ 150 75 $ 75 Percent of Sales 100% 50% 50% The company is currently selling 6,500 units per month. Fixed expenses are $206,000 per month The marketing manager believes that a $6,300 increase in the monthly advertising budget would result in a 100 unit increase in monthly sales. What should be the overall effect on the company's...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $130 78 $ 52 Percent of Sales 100% 60% 40% The company is currently selling 6,800 units per month. Fixed expenses are $180,000 per month. The marketing manager believes that a $8,000 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales. What should be the overall effect on the company's monthly...
Kuzlo Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $150 60 $ 90 Percent of Sales 100% 40% 608 The company is currently selling 7,000 units per month. Fixed expenses are $209,000 per month. The marketing manager believes that a $7100 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Percent of Sales 100% 40% Per Unit $130 52 $ 78 Selling price Variable expenses Contribution margin 60% The company is currently selling 5,000 units per month. Fixed expenses are $216,000 per month. The marketing manager believes that a $7,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly...
Exercise 18-9 Contribution margin and break-even P2 Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The company's annual fixed costs are $562,500. Use this information to compute the company's (a) contribution margin, (b) contribution margin ratio, (c) break-even point in units, and (d) break-even point in dollars of sales.
Help Save & Exit Submit Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit $130 Percent of Sales 1008 509 Selling price Variable expenses Contribution margin $ 65 The company is currently selling 6,000 units per month. Fixed expenses are $214,000 per month. The marketing manager believes that a $7.200 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales. What should be the overall effect on...
Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January Sales (3,500 units) Variable expenses Contribution margin Fixed expenses Net operating income $94,500 41,580 52,920 40,700 $12,220 If the company sells 3,800 units, its total contribution margin should be closest to: (Do not round intermediate calculations.) Multiple Choice $52,920 $57456 $71,700 $13,267 Nocum Corporation has provided the following contribution format income statement. Assume that the following information is within the...
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