5. what is the break even point in dollar sales? 6. what is the break even point in unit sales? 7.if the variable cost per unit increases by $1, spending on advertising increases by$1400 andunit sales increase by 180 units, what would be the net operating income? Required information[The following information applies to the questions displayed below.]Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (therelevant range of production is 500 units to 1,500 units):SalesVariable expensesContribution marginFixed expensesNet operating income$ 50,00027,50022,50014,850$ 7,650

Variable Costs: Variable costs is the cost which tends to increase or decrease depending on the…

Answered: 5. what is the break even point in…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7DQ

See similar textbooks

Similar questions

a.Explain why contribution margin per unit becomes profit per unit above the break-even point b. If the contribution margin per unit is $7 and the break-even point is 10,000 units, how much profit will a firm make if 15,000 units are sold? c.What is the variable cost ratio? The contribution margin ratio? How are the two ratios related?
Imagine that you could increase the price for a product that has a profit margin of 8% on its price. If you could increase the price by 1% AND simultaneously keep the sales volume (in unit terms) at the same level as before the price increase, calculate the impact of this price increase on the profit margin. (For this question, assume there are no fixed costs. You just need to calculate the PERCENTAGE CHANGE in profit margin)
2. Given the following information: The ratio of variable cost per unit divided by selling price per unit equals 0.25 Fixed Costs Amount to $50,000 a. What is the Break-even point b. What effect would a 6% decrease in selling price have on the break even point from part a?
Given that the total cost, C, is related to sales volume, x, by the equation y=1000+0.2x, say true or false for the following and proof it. (a) The cost-sales line rises $2 for each increase of $10 in sales volume. (b) The slope of the line is interpreted as variable cost
I have the following additional questions: 1) Calculate the breakeven point in dollars under the current scenario 2) Calculate the number of units to be sold if the company desires a target profit of $225,000. 3) Calculate the sales dollars if the company desires a target profit of $225,000.
A 10 % decrease in the selling price of a product will have the same impact on net income as a 10 % increase in the variable expenses. Do you agree? Why or why not? Give an example.
E Perfect Pop spends $1.00 on direct materials, direct labour, and variable manufacturing overhead for every unt (12 pack of soda) it produces Fed manufacturing overhead costs $3 milion per yer The plant which is currently operating at only 70% of capacity, produced 15 million units this year Management plans to operate closer to full capacity next year, producing 20 million units Management does not anticipate any changes in the prices it pays for materials, labour, and manufacturing overhead Requirements Requirement a. What is the current total product cost for the 15 million units), including faed and varable costs? Determine the formula, then calculate the current total product cost milion millon GID Total product costs millon
Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (35,000 units) Variable expenses $ 280, 000 175, 000 $8.00 5.00 Contribution margin 105, 000 $3.00 Fixed expenses 46,000 $59,000 Net operating income Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 14%? 2. What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 19%? 3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 7%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 9%?
What is the selling price per unit?
15. Once the break-even point is reached, which of the following statements is true? A. The total contribution margin changes from negative to positive. B. Net income will increase by the unit contribution margin for each additional item sold. C. Variable expenses will remain constant in total. D. The contribution margin ratio begins to decrease.
Please help with 7 through 10. Thank you!:)
7. the maximum that they can increase the fixed cost? Company ET 's fixed costs were $40 000, variable costs 60% of sales and profit was $22 000. If variable costs have increased by 10% (of the variable costs) and fixed costs have increased to $44 000, what sales volume does ET now need to make the same profit assuming there is no increase in selling prices?

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Entrepreneurial Finance

Finance

ISBN:

9781337635653

Author:

Leach

Publisher:

Cengage

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Entrepreneurial Finance

Finance

ISBN:

9781337635653

Author:

Leach

Publisher:

Cengage

SEE MORE TEXTBOOKS

5. what is the break even point in dollar sales? 6. what is the break even point in unit sales? 7. if the variable cost per unit increases by $1, spending on advertising increases by$1400 and unit sales increase by 180 units, what would be the net operating income?