A company generated $250,000 of revenue by selling 500 computers. Total variable expenses associated withthese 500 computers is $150,000. Total fixed expenses associated with these 500 computers is $80,00013. What is the total contribution margin needed for the company to break even?A. $80,000B. $150,000C. $250,000D. $500,00014. How many computers must be sold for the company to break even?Show Transcribed TextD. OUU15. Assuming everything remains the same. However, the company only happened to sell 399 computers.What is the net operating income?A. ($200)B. 0C. $200D. $50016. If the company wants to generate $600 of net operating income, how many computers must be sold?A. 399B. 403C. 406D. 408

Lets understand the basics.Break even point is a point at which no profit no loss condition arise.…

Answered: A company generated $250,000 of revenue…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please help me with this accounting homework question, I am having so much trouble.
Tanner Company’s most recent contribution format income statement is presented below: Sales $75,000 Less Variable Expenses 45,000 Contribution Margin 30,000 Less Fixed Expenses 36,000 Net Income ($6,000) The company sells its only product for $15 per unit. There was no beginning or ending inventories. How many units would have to be sold to earn a target profit of $9,000?
A company has three product lines, one of which has the following results: Sales $214000 Variable expenses 127000 Contribution margin 87000 Fixed expenses 130000 Net loss $ (43000) If this product line is eliminated, 60% of the fixed expenses will be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company’s net income will
The margin of safety in the Flaherty Company is $28,400. If the company's sales are $129,000 and its variable expenses are $80,000, what must its fixed expenses be? Question 19Answer a. $129,000 b. $28,400 c. $264,845 d. $38,208
A company requires $1400000 is sales to meet its net income target. Its contribution margin is 50% and fixed costs are $300000. What is the company's target net income?
Wiles Inc.'s unit selling price is $40, the unit variable costs is $30, fixed costs are $80,000, and current sales are 10,000 units. How much would operating income change if sales increase by 4,000 units? a. $100,000 increase b. $40,000 increase c. $80,000 decrease d. $60,000 decrease
Diamond, Inc.'s most recent contribution margin income statement shows the following: Sales @ $10 per unit Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss) $160,000 (120,000) $ 40,000 (50,000) $ (10,000) If Diamond, Inc's advertising costs increased by $5,000, by how much would sales have to increase for the company to achieve an operating income of $4,000? a. $56,000 Ob. $42,000 c. $76,000 Od. $18,000
6. . At a furniture factory, the average selling price of a table is $18, the average variable expense per table is $ 9, and the average fixed expense per month is $ 12,000. On average 2, 000 tables are sold at each month. If sales increase by 20%, by how much should net operating income increase? A. $ 7,200 B. $ 10,000 C. $8,000 D. $3,160
Diamond, Inc.'s most recent contribution margin income statement shows the following: Sales @ $10 per unit Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss) $160,000 (120,000) $ 40,000 (50,000) $ (10,000) If Diamond, Inc's advertising costs increased by $5,000, by how much would sales have to increase for the company to achieve an operating income of $4,000? a. $56,000 b. $42,000 c. $76,000 Od. $18,000
Jake Company has three product lines, one of which has the following results: Sales P215,000 Variable expenses 125,000 Contribution margin 90,000 Fixed expenses 130,000 Net loss P (40,000) If this product line is eliminated, 60% of the fixed expenses will be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, how much will the company's net income or loss be?
25.
Bha

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS