QUESTION 24 Alpha Company's fixed costs for the year amounted to s350,000 and its unit contribution...
Alpha Company's fixed costs for the year amounted to $450,000 and its unit contribution margin was $30 per unit. Beta Company's fixed costs for the year also amounted to $450,000 but its unit contribution margin was $20 per unit. Which company had the higher break-even point?
QUESTION 27 When sales dollars increase, the net income of a company with a high degree of operating leverage will increase more quickly than in a company with a lower operating leverage. However, when sales dollars decrease, the net income of a company with a high degree of operating leverage will decrease more quickly than in a company with a lower operating leverage. True O False QUESTION 28 Jen & Berry's currently sells 100,000 pints of ice cream per month...
Cooper Company sells a product at $50 per unit that has unit variable costs of $20. The company's break-even sales point in sales dollars is $150,000. How much is the fixed costs now? (Hint: The fixed costs is same as the total contribution margin when there is break-even.) Select one: O a. $200,000 O b. $100,000 O c. $90,000 O d. $120,000 Zeus, Inc. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs...
Question 15: Cooper Company sells a product at $50 per unit that has unit variable costs of $20. The company's break-even sales point in sales dollars is $150,000. How much is the fixed costs now? (Hint: The fixed costs is same as the total contribution margin when there is break-even.) Select one: O a. $120,000 O b. $100,000 O c. $200,000 O d. $90,000 ge Next page
A company sells a product with a contribution margin ratio of 20%. The company's monthly fixed expense is $400,000 and the company's monthly target profit is $100,000. The dollar sales required to attain the target profit are: A. $2,500,000 B. $1,500,000 C. $625,000 D. $2,000,000 Sales above the break-even point will result in net profit equal to _______. A. number of units above break-even times fixed cost per unit B. number of units above break-even times contribution margin per unit...
Zhao Co. has fixed costs of $245,000. Its single product sells for $155 per unit, and variable costs are $106 per unit. If the company expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales. Dollars Percent Margin of safety % US-Mobile manufactures and sells two products, tablet computers and smartphones, in the ratio of 4:2. Fixed costs are $90,860, and the contribution margin per composite unit is $118. What number...
Martin Company's projected profit for the coming year is as follows: Total Per Unit Sales $300,000 $30 Total Variable Cost 200,000 20 Contribution Margin $100,000 $10 Total Fixed Cost 80,000 Operating Income $20,000 Compute the variable cost ratio (round to 4 decimal places). Compute the contribution margin ratio (round to 4 decimal places). Compute the break-even point in units. Compute the break-even point in sales dollars. How many units must be sold to earn a profit of $50,000? For the...
Bob's Business sells radios for $200. The variable costs per unit are $150 and fixed costs are $500,000. 1. The unit contribution margin is 2. The contribution ratio is 3. The variable expense ratio is 4. The break-even point in dollars is 5. How many radios must Bob's Business sell in order to earn a $100,000 profit? 6. What is Bob's Business's margin of safety in dollars at the $100,000 profit level? 7. What is Bob's operating leverage at the...
Calculate the following information for Rudolph's Snowmobile Rentals Ine Total fixed costs Unit sales price Unit variable cost $7,800 $200 per hour S 50 per hour a) Compute the contribution margin per rental hour. Sales Vaviabit cost b) Compute the contribution margin ratio. c) Compute the break-even point in hours. d) Compute the break-even point in sales dollars. e) Calculate the hours needed to earn S29,700 in operating income. ie sales price to $180 and has no changes itn vaniable...
Zoom Company produces widgets. The widgets are sold for $3.00 per unit to wholesalers. Unit variable cost are 60%. For the year 2019, management estimates the following revenues and costs. $ Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed Selling expenses - variable Selling expenses - fixed SGA expenses - Variable SGA expenses- fixed 2,500,000 630,000 560,000 350,000 480,000 80,000 85,000 40,000 100,000 5 Instructions: 6 (a) Compute the contribution margin ratio. (Round to the nearest full percent.) Instructions:...