Question
1)
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
2)
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
3)
Zipee Inc. s unit selling price is $90, the unit variable costs are $40.50, fixed costs are $170,000, and current sales are 12,000 units. How much will operating income change if sales increase by 5,000 units? Oa. $125,000 decrease Ob. $247,500 increase Oc.$75,000 increase Od. $175,000 increase
4)
If fixed costs are $450,000, the unit selling price is $75, and the unit variable costs are $50, what are the old and new break-even sales (units) if the unit selling price increases by $10? Oa. 18,000 units and 12,857 units Ob. 6,000 units and 5,294 units c.9,000 units and 15,000 units Od. 18,000 units and 6,000 units
5)
Forde Co. has an operating leverage of 4. Sales are expected to increase by 12% next year. Operating income is Oa. unaffected On expected to increase by 4 % c, expected to increase by 396 od, expected to increase by 48%
0 0
Add a comment Improve this question Transcribed image text
Answer #1
As per HOMEWORKLIB RULES we answer one question per post. But I have answered multiple questions. Kindly post remaining questions in next post
Dear Student
Thank you for using homeworklib
Please find below the answer
Statementshowing Computations
Paticulars Amount
Q1 d 4,930 Units
Fixed costs             103,530.00
Contribution margin per unit                        21.00
Break even point in units = 103,530/21                  4,930.00
Q2 d $8,000 Increase
Variable costs ratio 80%
Contribution margin ratio = 100%- 80% 20%
If sales increase by 40,000, operating income will increase by 40,000*20%                  8,000.00
Q3 b $247,500 increase
Selling price per unit                        90.00
Variable cost per unit                        40.50
Contribution margin per unit                        49.50
If sales increase by 5000 units, operating income will increase by 5000*49.50             247,500.00
Add a comment
Know the answer?
Add Answer to:
1) 2) 3) 4) 5) When Isaiah Company has fixed costs of $103,530 and the contribution...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT