1. What is the revised net operating income if unit sales increase by 16%? 2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold increases by 17%? 3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $8,000, and the number of units sold decreases by 8%?

Q: crease by 5,800 units? a. $81,200 increase b. $152,600 increase $54, the unit variable costs are…

A: Answer : Calculation of operating income change if sales volume increase by 5800 units : Operating…

Q: Variable expenses are 60% of sales. At a R400 000 sales level, the degree of operating leverage is…

A: The term sales revenue represents gross earnings produced by a business entity before adjusting for…

Q: able costs are $4 per unit. How m if sales volume is increased by

A: Price per unit = $5 Variable cost = $4 Fixed cost per unit =$2   If sales volume increased by 10…

Q: i know the answer but i want to know the steps. thank you

A: given information: Amount ($) % Selling price per unit $10 100 Variable cost per unit $4 40%…

Q: Spice Inc.'s unit selling price is $46, the unit variable costs are $31, fixed costs are $106,000,…

A: Values given in the question Unit selling Price = $46 Unit variable cost = $31   Contribution per…

Q: XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 5%, by how…

A: The CPV or cost volume profit analysis helps in determining the effects on the operating income from…

Q: 17. During the current year, the net sales of Regine Company, were 10% below last vear's level. You…

A: There are three types of costs that are fixed, variable, and semi-variable.

Q: Summer Repair Shop has a monthly target operating income of $40,000. Variable expenses are 85% of…

A: The margin of safety sales  means difference between current sales and break even sales. Break even…

Q: ed cost g term.

A: Answer : Contribution margin = Sales - Variable cost Contribution margin = $6000 - $4000 = $2000

Q: Spice Inc.'s unit selling price is $50, the unit variable costs are $36, fixed costs are $118,000,…

A: Operating Income A company's gross income, which is equal to total revenue less cost of products…

Q: If total fixed cost of company increases from $250,000 to $300,000, variable cost remainsunchanged…

A: Break even point:— It is the point of production where total cost is equal to total revenue. At this…

Q: A company has provided the following data: Sales 5,000 units Sales price $100 per unit Variable cost…

A: The contribution Margin is calculated as difference between sales and variable cost. The net income…

Q: Indicate whether the breakeven point will increase or decrease based on the following change (each…

A: Break even point = Fixed costs /Contribution margin per unit  where, Contribution margin per unit =…

Q: A company that produces cameras has fixed costs of $153,000 per annum. The variable costs are 45% of…

A: Profit is amount available after deduction of the fixed cost and variable cost from the sales and is…

Q: Assume the following information: Sales Variable expenses Contribution margin Fixed expenses Net…

A: The measurement of net operating income (NOI) is used to assess the viability of income-generating…

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A: Marginal Contribution Margin is the additional profit generated by each additional unit sold, while…

Q: 3. Claire Corp.'s sales increase from $500,000 to $1,000,000. What is the percentage change in…

A: Since you have asked multiple questions, we will solve the first question for you . If you want any…

Q: What is the revised net operating income if the selling price per unit increases by 20%, variable…

A: Variable Expenses per unit will remain the same Irrespective of the number of units Sold however the…

Q: 10. A product was expected to sell for £6 and to have variable costs of £1.60 per unit; fixed costs…

A: The break even sales are the sales where business earns no profit no loss during the period. The…

Q: Miller Company's most recent income statement follows: Total Sales (20,000 units) Less: Variable…

A: Income Statement - it is the statement which represent the information about the financial result of…

Q: (Don't round intermediate calculations, round answer to 2 decimal places). Using degree of…

A: % Increase in operating income =  % increase in sales * Degree of operating leverage

Q: a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of…

A: Contribution Margin is  Sales minus Variable Cost and Contribution Margin Ratio is Contribution…

Q: Revenue from product X is $4,000. Total variable costs for product X are $2,500. The allocated fixed…

A: If a product is dropped then revenue from the product is lost, variable costs are saved and…

Q: What is the break even point in dollars if annual fixed costs are 114,000 and CTO is 0.65?

A: Break-even point: It can be defined as the production level at which the firm incurs no losses and…

Q: What will be the new contribution if the sales increase by 20%?

A: Contribution: It is the part of the revenue not spent by variable cost.  It is computed by reducing…

Q: Sarah Allen owns and operates Blossom, a bakery that creates personalized birthday cakes for a…

A: Break-even units represent the number of units sold to cover the costs like variable and fixed. When…

Q: Sales revenue from product X is $9,000, variable costs are $6,000, and allocated fixed costs are…

A: Change in profit = New profit - Old profit   Fixed cost doesn't change even if the product X is…

Q: of fixed expenses increase by $10,000 per year, then the sales needed to break even will generally…

A: The fixed costs are the costs that normally do not change with a change in sales volume however the…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.