6. . At a furniture factory, the averageselling price of a table is $18, the averagevariable expense per table is $ 9, and theaverage fixed expense per month is $12,000. On average 2, 000 tables are soldat each month. If sales increase by 20%,by how much should net operatingincome increase? A. $ 7,200 B. $ 10,000C. $8,000 D. $3,160

MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…

Answered: 6. . At a furniture factory, the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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6.Dalian Company provides the following information: Price per unit $20.00 Variable cost per unit $8.00 Fixed costs per month: $15,000 What is the break-even point in terms of units sold? Select one: A.1,875 B.1,250 C.1,200 D.1,150
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Product G Product B $ 90 $ 120 Selling price per unit Variable costs per unit 30 72 Contribution margin per unit $ 60 $ 48 Machine hours to produce 1 unit 0.4 hours 1 hours Maximum unit sales per month 600 units 200 units The company presently operates the machine for a single eight-hour shift for 22 working days each month. Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours per day for 22 days per month. This change would require $6,000 additional fixed costs per month. (Round hours per unit answers to 1 decimal place.) 1. Determine the contribution margin per machine hour that each product generates. Product B Product G $ Contribution margin per unit 48.00 Machine hours per unit 1.0 Contribution margin per machine hour 48.00 Product G Maximum number of units to be sold 600…
Amber Manufacturing provided the following information for last month: Sales $20,000 Variable costs 6,000 Fixed costs 2,000 Operating income $5,000 If sales double next month, what is the projected operating income? a. $10,000 b. $25,000 c. $19,000 d. $12,000 Desktop
If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? А. 100 В. 180 С. 200 D. 2,000
If a business had sales of $4,369,000 and a margin of safety of 20%, the break-even point was a.$3,495,200 b.$873,800 c.$7,864,200 d.$5,242,800
A company’s forecasted sales are $300,000 and its sales at break-even are $180,000. Its margin of safety in dollars is a. $180,000. c. $480,000. e. $300,000. b. $120,000. d. $60,000.
A firm sell a single product for $6. Its variable cost per unit is $4 and fixed costs are $50. Ignoring income taxes, the amount of sales revenue needed for $20 profit is Select one: a. $210. b. $150. c. $35. d. $25.
J2.
Craylon Manufacturing produces a single product that sells for $100. Variable costs per unit equal $25. The company expects total fixed costs to be $60,000 for the next month at the projected sales level of 1,000 units. The operating income for the next month is : Select one: a. 15,000 b. 60,000 c. 135,000 d. 75,000
Davis Corporation manufactures a single product. The selling price is $340 per unit, and variable costs amount to $68 per unit. The fixed costs are $16,500 per month. What will be the monthly margin of safety (in dollars) if 200 units are sold each month? Select one: a. $82,375. b. $70,375. Oc. $47,375. Od. $12,375.
5. The Goldielocks company produces 3 products - Hot Product, Cold Product, Just Right Product. The variable expenses and sales price of all the products are given below: Just Right Prod. $50 Hot Prod. Cold Prod. Sale price per unit Variable exp per unit $ 200 $ 100 $ 100 $ 75 $25 The total fixed expenses of the company are $50,000 per month. For the coming month, Goldielocks expects the sale of the 3 products to be in the following ratio: Hot Product - 20% Cold Product - 30% Just Right Product - 50% Compute the following: Weighted-average contribution margin? How many total products must Goldielocks sell to break-even? How many of each product must Goldielocks sell to break-even? а. b. с. d. How much revenue will Goldielocks earn with this sales mix?
2. MGS a manufacturing company placed an order of 24,000 units semiannually at a price of 20 per unit. Its carrying cost is 15% and the order cost is 12 per order. Compute the following:a) What is the most economical order quantity?b) How many orders need to be placed?

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