Homework Answers
Answer
| Current | Alternative #1 | Alternative #2 | |
| Sale units | 5000 | 5000 | 5000 |
| Sale price per unit | $80 | $88 | $80 |
| Sales Revenue | $400,000 | $440,000 | $400,000 |
| Less: Variable Cost | $240,000 | $240,000 | $220,000 |
| Contribution margin | $160,000 | $200,000 | $180,000 |
| Less: Fixed Cost | $90,000 | $90,000 | $90,000 |
| Net Income | $70,000 | $110,000 | $90,000 |
--Alternative #1 is BETTER.
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E11-15 Yams Company reports the following operating results for the month of August: sales $400,000 (units...
5.15 (LO 5), AP Yams Company reports the following operating results for the month of August:...
5.15 (LO 5), AP Yams Company reports the following operating results for the month of August: sales $400,000 (units 5,000), variable costs $240,000, and fixed costs $90,000. Management is considering the following independent courses of action to increase net income. I. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 55% of sales. Instructions Compute the net income to be earned under each alternative. Which course of action will...
Yams Company reports the following operating results for the month of August: sales $370,000 (units 5,000),...
Yams Company reports the following operating results for the month of August: sales $370,000 (units 5,000), variable costs $257,000, and fixed costs $95,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 11% with no change in total variable costs or units sold. 2. Reduce variable costs to 61% of sales. Compute the net income to be earned under each alternative. (Round intermediate calculations to 2 decimal places e.g. 2.25 and...
Yams Company reports the following operating results for the month of August: sales $336,000 (units 4,800),...
Yams Company reports the following operating results for the month of August: sales $336,000 (units 4,800), variable costs $244,000, and fixed costs $91,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 55% of sales. Compute the net income to be earned under each alternative. (Round intermediate calculations to 2 decimal places e.g. 2.25 and...
Barnes Company reports the following operating results for the month of August: sales $300,000 (units 5,000);...
Barnes Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $217,000; and fixed costs $70,000. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase selling price by 10% with no change in total variable costs or sales volume. Net incomes 2. Reduce variable costs to 55% of sales. Net income $ 3. Reduce fixed costs by...
Barnes Company reports the following operating results for the month of August: sales $325,000 (units 5,000);...
Barnes Company reports the following operating results for the
month of August: sales $325,000 (units 5,000); variable costs
$213,000; and fixed costs $71,600. Management is considering the
following independent courses of action to increase net
income.
Compute the net income to be earned under each alternative.
1. Increase selling price by 10% with no change in
total variable costs or sales volume.
Net income
$
2. Reduce variable costs to 58% of
sales.
Net income
$
3. Reduce fixed costs...
CALCULATOR PRINTER VERSION 4 BACK Exercise 5-15 Your answer is partially correct. Try again. Yams Company...
CALCULATOR PRINTER VERSION 4 BACK Exercise 5-15 Your answer is partially correct. Try again. Yams Company reports the following operating results for the month of August: sales $400,000 (units 5,000), variable costs $240,000, and fixed costs $90,000 Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 55% of sales. Compute the net income to be...
Exercise 20-3 Barnes Company reports the following operating results for the month of August: sales $300,000...
Exercise 20-3 Barnes Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $217,000; and fixed costs $70,000. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase selling price by 10% with no change in total variable costs or sales volume. Net income 2. Reduce variable costs to 55% of sales. Net income 3. Reduce fixed costs...
Question 10 Vaughn Company reports the following operating results for the month of August: sales $315,000...
Question 10
Vaughn Company reports the following operating results for the
month of August: sales $315,000 (units 5,000); variable costs
$219,000; and fixed costs $71,600. Management is considering the
following independent courses of action to increase net
income.
Compute the net income to be earned under each alternative.
1. Increase selling price by 10% with no change in
total variable costs or sales volume.
Net income
$
2. Reduce variable costs to 60% of
sales.
Net income
$
3. Reduce...
Oriole Company reports the following operating results for the month of August: sales $408,000 (units 5,100),...
Oriole Company reports the following operating results for the month of August: sales $408,000 (units 5,100), variable costs $256,000, and fixed costs $93,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 15% with no change in total variable costs or units sold. 2. Reduce variable costs to 66% of sales. Compute the net income to be earned under each alternative. 1. Net Incomes 2. Net Income Which course of action...
Sunland Company reports the following operating results for the month of August: sales $432,000 (units 4,800),...
Sunland Company reports the following operating results for the month of August: sales $432,000 (units 4,800), variable costs $258,000, and fixed costs $95,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 64% of sales. Compute the net income to be earned under each alternative. 1. Net Income 2. Net Income Which course of action...
5.15 (LO 5), AP Yams Company reports the following operating results for the month of August: sales $400,000 (units 5,000), variable costs $240,000, and fixed costs $90,000. Management is considering the following independent courses of action to increase net income. I. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 55% of sales. Instructions Compute the net income to be earned under each alternative. Which course of action will...
Yams Company reports the following operating results for the month of August: sales $336,000 (units 4,800), variable costs $244,000, and fixed costs $91,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 55% of sales. Compute the net income to be earned under each alternative. (Round intermediate calculations to 2 decimal places e.g. 2.25 and...
Barnes Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $217,000; and fixed costs $70,000. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase selling price by 10% with no change in total variable costs or sales volume. Net incomes 2. Reduce variable costs to 55% of sales. Net income $ 3. Reduce fixed costs by...
Barnes Company reports the following operating results for the
month of August: sales $325,000 (units 5,000); variable costs
$213,000; and fixed costs $71,600. Management is considering the
following independent courses of action to increase net
income.
Compute the net income to be earned under each alternative.
1. Increase selling price by 10% with no change in
total variable costs or sales volume.
Net income
$
2. Reduce variable costs to 58% of
sales.
Net income
$
3. Reduce fixed costs...
CALCULATOR PRINTER VERSION 4 BACK Exercise 5-15 Your answer is partially correct. Try again. Yams Company reports the following operating results for the month of August: sales $400,000 (units 5,000), variable costs $240,000, and fixed costs $90,000 Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 55% of sales. Compute the net income to be...
Exercise 20-3 Barnes Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $217,000; and fixed costs $70,000. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase selling price by 10% with no change in total variable costs or sales volume. Net income 2. Reduce variable costs to 55% of sales. Net income 3. Reduce fixed costs...
Question 10
Vaughn Company reports the following operating results for the
month of August: sales $315,000 (units 5,000); variable costs
$219,000; and fixed costs $71,600. Management is considering the
following independent courses of action to increase net
income.
Compute the net income to be earned under each alternative.
1. Increase selling price by 10% with no change in
total variable costs or sales volume.
Net income
$
2. Reduce variable costs to 60% of
sales.
Net income
$
3. Reduce...
Oriole Company reports the following operating results for the month of August: sales $408,000 (units 5,100), variable costs $256,000, and fixed costs $93,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 15% with no change in total variable costs or units sold. 2. Reduce variable costs to 66% of sales. Compute the net income to be earned under each alternative. 1. Net Incomes 2. Net Income Which course of action...
Sunland Company reports the following operating results for the month of August: sales $432,000 (units 4,800), variable costs $258,000, and fixed costs $95,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 64% of sales. Compute the net income to be earned under each alternative. 1. Net Income 2. Net Income Which course of action...
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