Please check the answer twice and add explanation please 7)The results from one of your divisions for 2020 is given below.units:28,500Rev722,052,000DM30855,000DL10285,000VarMOH4114,000VarSelling8228,000CM570,000FC-Moh305100FC-S&A이19950065,400The Division Manager feels that if you increase advertising by $23,250 you will increase sales by 4%.What would the Operating Income (OI) be if you did? (round to nearest dollar)

The Division Manager suggests that by increasing advertising by $23,250, sales will increase by 4%.…

Answered: 7) The results from one of your…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 20MC: Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month...

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Operating results for Division A of Alpha Company during 2019 are as follows: Sales $560,000 Cost of goods sold 347,200 Gross profit 212,800 Direct expenses 37,800 Common expenses 63,000 100,800 $112,000 Total expenses Net income If Division A would maintain the same quantity of product sold while raising selling prices by 14.000000000000002%, increasing direct labor costs by $28,000 and implementing a new marketing campaign at a cost of $14,000, what would be the effect on the Division's net income? (Ignore income taxes in your calculations.) Select one: O a. Net income would increase by $36,400 b. Net income would increase by $28,000 c. Net income would decrease by $36,400 d. Net income would increase by $42,000 e. None of these options are correct. O O O
Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month of April. Wallace expects sales volume to increase by 5% in May. What are the degree of operating leverage and the expected percent change in income for Wallace Industries? 0.42 and 2.2% 0.42and5% 2.4andl2% 2.Sandl3%
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The Consumer Products Division of Goich Corporation had average operating assets of $500,000 and net operating income of $41,500 in May. The minimum required rate of return for performance evaluation purposes is 12%. What was the Consumer Products Division's minimum required return in May? Multiple Cholce $4,980 $41,500 $64,980 $60.000 65°F Cloudy pe here to search DELL
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Consider a telecommunication service provider. You have the following quarterly data: STATISTICS TYPICAL CONSUMER Number of referrals per period (n=n1+ n2) 5 of which, customers that joined due to the referral (n1) 3 of which, customers that would have joined anyway (n2) 2 Marketing cost per period (Mty) $30 Average gross margin (Aty) $78 Cost of referral (aty) $15 Acquisition cost savings (ACQ1ty and ACQ2ty) $10 Yearly discount rate (r) 15% Calculate CRV of a typical customer for one year (over 4 quarters).
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Operating results for Division A of Alpha Company during 2019 are as follows: Sales $480,000 Cost of goods sold 297,600 Gross profit 182,400 Direct expenses 32,400 Common expenses 54,000 Total expenses 86,400 Net income $96,000 If Division A would maintain the same quantity of product sold while raising selling prices by 6% and making additional advertising expenditures of $36,000, what would be the effect on the Division’s net income? (Ignore income taxes in your calculations.) Select one: a. Net income would decrease by $7,200 b. Net income would increase by $28,800 c. Net income would increase by $36,000 d. Net income would decrease by $28,800 e. Net income would increase by $7,200
The following is Pacific Limited’s contribution format income statement for January 2022: Sales $1,400,000Variable expenses 700,000Contribution margin 700,000Fixed expenses 400,000Net operating income $ 300,000 The company has no beginning or ending inventories and produced and sold 25,000 units during the month. Required (show your calculation): a. The company’s top management team is currently investigating how many units they need to sell to reach the break-even point. Also, they want to know how much revenue they need to generate to reach the break-even point. What do you think? b. If the company aim to generate a profit of $155,000, how many extra units they need to sell beyond the break-even point? c. What is the company’s margin of safety both in dollar and percentage terms? Explain the margin of safety of the company? d.
Candlemania, Inc. Financial Projections - 2021 Inputs: Section A: Section B: Section C: 2020 Actual 30,000 Change Factors 2021 What-If? 0% 0% 0% 0% 0% 0% 0% 2021 What-If? Sales in units ? Sales price per unit Direct materials cost per unit Direct labor cost per unit Variable overhead cost per unit | $ 120.00 ? 18.00 ? 16.00 ? 22.00 ? Fixed costs 2$ 500,000 ? Target Income Income Projections: $4 700,000 2020 Actual Sales ? ? Less variable expenses: Direct materials ? ? Direct labor ? Variable overhead ? ? Total variable expenses ? ? Contribution margin Less fixed expenses ? ? ? ? Income before taxes Contribution margin per unit Contribution margin ratio ? ? ? ? Break-even sales in units ? ? Break-even sales in $$ ? ? Margin of safety in units Margin of safety in sales $$ Sales in units to yield target income ? ? ? ? ?

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