Stellar Company has the following sales, variable cost, and fixed cost. If sales increase by $10,000...
Stellar Company has the following sales, variable cost, and fixed cost. If sales increase by $10,000 then their profit increases/decreases by how much?
Sales $50,000
Variable Costs $8,000
Fixed Costs $25,000
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Stellar Company has the following sales, variable cost, and
fixed cost. If sales increase by $10,000...
Last year, Small Company sold 10,000 units of its only product. If sales increase by 15%...
Last year, Small Company sold 10,000 units of its only product. If sales increase by 15% in the current year, how will unit variable cost and unit fixed cost be affected? Unit Variable Cost A) Remains constant B) Increases C) Decreases D) Remains constant E) Remains constant Unit Fixed Cost Remains constant Decreases Remains constant Decreases Increases A. Choice A B. Choice B C. Choice C D. Choice D E. Choice E
Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors....
Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics: Sales price $15 per unit Variable costs 5 per unit Fixed costs 50,000 per month Required: What number must Warner sell per month to break even? 5,000 b. What number must Warner sell per month to make an operating profit of $34,000? $8,400 Assume that the company plans to sell 9,000...
Selling Price = $28.00 Variable 2,000 6,000 12 Fixed Cost $20,000 20,000 20,000 30,000 30,000 30,000...
Selling Price = $28.00 Variable 2,000 6,000 12 Fixed Cost $20,000 20,000 20,000 30,000 30,000 30,000 40,000 40,000 40,000 $ 14,000 12,000 10,000 4,000 2,000 Sales Volume 3,000 4,000 5,000 Profitability $ 31,000 $ 48,000 $ 65,000 28,000 44,000 60,000 25,000 40,000 55,000 21,000 38,000 55,000 18,000 34,000 50,000 15,000 30,000 45,000 11,000 28,000 45,000 8,000 24,000 40,000 5,000 20,000 35,000 $ 82,000 76,000 70,000 72,000 66,000 60,000 62,000 56,000 50,000 (6,000) (8,000) (10,000) Required a. Determine the sales volume,...
Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO5-4] [The...
Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO5-4] [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 80 52 $ 28 Percent of Sales 100% 65 35% Fixed expenses are $76,000 per month and the company is selling 4,600 units per month. Exercise 5-5 Part 1 Required: 1-a. How much will net operating income increase (decrease) per...
1) At the break even point of 400 units, variable cost were $400 and fixed costs...
1) At the break even point of 400 units, variable cost were $400 and fixed costs were $200. how much will the 401st unit sold contribute to operating profit before income taxes? 2) Break even would not change if : a) sales price increases, b) fixed cost decrease, c) sales volume decrease, d) variable cost per unit increase 3) what is break even point in dollars? sales price: $100, variable cost per unit: $40, total fixed cost :$ 120,000 4)...
3 LUHELIEU UIE TUIIUNITY PILE GITU LUDI LIIGI OLIEHSULD. $ Sales price Variable costs Fixed costs...
3 LUHELIEU UIE TUIIUNITY PILE GITU LUDI LIIGI OLIEHSULD. $ Sales price Variable costs Fixed costs 14 per unit 2 per unit 48,000 per month 2 of 2 mts eBook Assume that the company plans to sell 6,000 units per month. Consider requirements (6), (q), and (independently of each oth Required: a. What will be the operating profit? b. What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 40 percent? c. What...
Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter of calendar...
Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter of calendar year 2017 reveals the following Fixed Budget Sales (10,000 units) Cost of goods sold $2,050,000 Direct materials Direct labor Production supplies Plant manager salar $240,000 420,000 270,000 970,000 1,080,000 Gross profit Selling expenses Sales comm1551ons Packaging Advertising 80,000 160,000 100,000 340,000 Administrative expenses Administrative salaries Depreciation-office equip Insurance Office rent 90,000 60,000 30,000 40,000 220,000 $ 520,000 Income from operations Complete the following flexible...
Copy Company has monthly fixed costs of $10,000 and variable costs of $12/unit. If the selling...
Copy Company has monthly fixed costs of $10,000 and variable costs of $12/unit. If the selling price is $25/unit and the company has set a target monthly income of $25,000, what dollar amount of sales must be made to produce the target income
Izzy Ice Cream has the following price and cost information: Price per 2-scoop sundae $5.00 Variable...
Izzy Ice Cream has the following price and cost information: Price per 2-scoop sundae $5.00 Variable cost per sundae: Ingredients 1.35 Direct labor 0.45 Overhead 0.20 Fixed cost per month $7,500 Required: 1. Determine Izzy's break-even point in units and sales dollars. 2. Determine how many sundaes must be sold to generate a profit of $15,000. 3. Calculate Izzy's new break-even point for each of the following independent scenarios: a. Sales price decreases by $0.50. b. Fixed costs decrease by...
Which of the following is a correct statement about fixed costs? Fixed costs will increase as...
Which of the following is a correct statement about fixed costs? Fixed costs will increase as output increases. If the firm does not produce, fixed costs will be equal to zero Fixed costs are only one-time costs of starting a business. If a firm's fixed cost is $10,000, that will be the same whether it produces 10 units or 100 units Which of the following is a correct statement about variable costs? If the firm does not produce, variable costs...
Last year, Small Company sold 10,000 units of its only product. If sales increase by 15% in the current year, how will unit variable cost and unit fixed cost be affected? Unit Variable Cost A) Remains constant B) Increases C) Decreases D) Remains constant E) Remains constant Unit Fixed Cost Remains constant Decreases Remains constant Decreases Increases A. Choice A B. Choice B C. Choice C D. Choice D E. Choice E
Selling Price = $28.00 Variable 2,000 6,000 12 Fixed Cost $20,000 20,000 20,000 30,000 30,000 30,000 40,000 40,000 40,000 $ 14,000 12,000 10,000 4,000 2,000 Sales Volume 3,000 4,000 5,000 Profitability $ 31,000 $ 48,000 $ 65,000 28,000 44,000 60,000 25,000 40,000 55,000 21,000 38,000 55,000 18,000 34,000 50,000 15,000 30,000 45,000 11,000 28,000 45,000 8,000 24,000 40,000 5,000 20,000 35,000 $ 82,000 76,000 70,000 72,000 66,000 60,000 62,000 56,000 50,000 (6,000) (8,000) (10,000) Required a. Determine the sales volume,...
Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO5-4] [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 80 52 $ 28 Percent of Sales 100% 65 35% Fixed expenses are $76,000 per month and the company is selling 4,600 units per month. Exercise 5-5 Part 1 Required: 1-a. How much will net operating income increase (decrease) per...
3 LUHELIEU UIE TUIIUNITY PILE GITU LUDI LIIGI OLIEHSULD. $ Sales price Variable costs Fixed costs 14 per unit 2 per unit 48,000 per month 2 of 2 mts eBook Assume that the company plans to sell 6,000 units per month. Consider requirements (6), (q), and (independently of each oth Required: a. What will be the operating profit? b. What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 40 percent? c. What...
Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter of calendar year 2017 reveals the following Fixed Budget Sales (10,000 units) Cost of goods sold $2,050,000 Direct materials Direct labor Production supplies Plant manager salar $240,000 420,000 270,000 970,000 1,080,000 Gross profit Selling expenses Sales comm1551ons Packaging Advertising 80,000 160,000 100,000 340,000 Administrative expenses Administrative salaries Depreciation-office equip Insurance Office rent 90,000 60,000 30,000 40,000 220,000 $ 520,000 Income from operations Complete the following flexible...
Which of the following is a correct statement about fixed costs? Fixed costs will increase as output increases. If the firm does not produce, fixed costs will be equal to zero Fixed costs are only one-time costs of starting a business. If a firm's fixed cost is $10,000, that will be the same whether it produces 10 units or 100 units Which of the following is a correct statement about variable costs? If the firm does not produce, variable costs...
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