62024348PrintMcGrawHillAccents Associates sells only one product, with a current selling price of $70 per unit. Variable costs are 40% of this selling price, and fixed costs are$12,000 per month Management has decided to reduce the selling price to $65 per unit in an effort to increase sales. Assume that the cost of theproduct and fixed operating expenses are not changed by this reduction in selling price.At the reduced selling price of $65 per unit, the contribution margin ratio is (Round the answer to one decimal place.)Multiple ChoiceOO60.0%52.9%431%< Prev6 of 17Next >

The contribution Margin is calculated as difference between sales and variable cost. The…

Answered: Accents Associates sells only one…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 1SEQ: Mario Company is considering discontinuing a product. The costs of the product consist of $20,000...

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Mario Company is considering discontinuing a product. The costs of the product consist of $20,000 fixed costs and $15,000 variable costs. The variable operating expenses related to the product total $4,000. What is the differential cost? A. $19,000 B. $15,000 C. $35,000 D. $39,000
Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true? a. Sales will increase by 300,000. b. Overall operating income will increase by 2,600. c. Overall operating income will decrease by 25,000. d. Overall operating income will not change. e. Common fixed cost will decrease by 27,600.
XYZ Company is facing changes in its cost structure so that fixed costs will increase from $400,000 to $500,000, but variable costs will decrease from $12 per unit to $10 per unitit were to implement these changes at its current production level of 50, 0 units (with no change to selling price ), profit would not change. What would happen to the company's profit if the changes were implemented and production decreased to 45,000 units? a- It will stay the same. b -It will increase . C-none of the given answers d -It will decrease .
Accents Associates sells only one product, with a current selling price of $160 per unit. Variable costs are 20% of this selling price, and fixed costs are $40,000 per month. Management has decided to reduce the selling price to $155 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price. At the current selling price of $160 per unit, the dollar volume of sales per month necessary for Accents to break-even is: $250,000 $50,000 $40,000 Some other amount. Please answer fast i give you upvote.
Blowing Sand Company produces the Drafty model fan, which currently has a net loss of $36,000 as follows: Drafty Model $300,000 210,000 $ 90,000 84,000 $6,000 42,000 $(36,000) Sales revenue Less: Variable costs Contribution margin Less: Direct fixed costs Segment margin Less: Common fixed costs Net operating income (loss) Eliminating the Drafty product line would eliminate $84,000 of direct fixed costs. The $42,000 of common fixed costs would be redistributed to Blowing Sand's remaining product lines. Will Blowing Sand's net operating income increase or decrease if the Drafty model is eliminated? By how much? Total Profit by
XYZ Company is facing changes in its cost structure so that fixed costs will decrease from $600,000 to $500,000, but variable costs will increase from $12 per unit to $14 per unit. If it were to implement these changes at its current production level of 50,000 units (with no change to selling price), profit would not change. What would happen to the ?company's profit if the changes were implemented, and production decreased to 45,000 units It will decrease .a O none of the given answers.b O .It will stay the same .c O It will increase d O
2
XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000. The company is considering increasing the price of its units to $65 per unit. If the price is changed, how many units will the company need to sell for profit to remain the same as before the price change? Select one: а. 10,000 b. 9,000 c. None of the given answers. d. 7,500 е. 11,250
XYZ Company is facing changes in its cost structure so that fixed costs will increase from $400,000 to $500,000, but variable costs will decrease from $12 per unit to $10 per unit. If it were to implement these changes at its current production level of 50,000 units (with no change to selling price), profit would not change. What would happen to the company's profit if the changes were implemented, and production decreased to 45,000 units? O a. It will decrease. O b. It will increase. O c. It will stay the same. O d. none of the given answers VIOUS PAGE NEXT PAGE Type here to search W d) ENG 19:12 07-04-2021 hp 4+ * ゴ "brt se delete home end pg up & 8 9 + backspace Tum lock R T home F G K enter 5 0 pause レ B t shift 2 end alt ctrl ins
The following information is available for Titan Based on this information, the management is considering eliminating product line C. They assumed that by operating only product lines A and B, they would have higher profits. It was also determined that if product line C is discontinued, 80% of the fixed overhead can be avoided, and 70% of the fixed selling and administrative expenses can also be avoided. Product A Product B Product C Sales P100,000 P300,000 P200,000 Cost of Goods Sold Direct Materials 25,000 75,000 80,000 Labor 20,000 40,000 50,000 Variable Overhead 10,000 20,000 15,000 Fixed Overhead 5,000 15,000 35,000 Total 60,000 150,000 180,000 Gross Profit 40,000 150,000 20,000 Selling and Administrative…
XYZ Company is facing changes in its cost structure so that fixed costs will decrease from $800,000 to $700,000, but variable costs will increase from $10 per unit to $12 per unit. If it were to implement these changes at its current production level of 50,000 units (with no change to selling price )profit would not change. What would happen to the company's profit if the changes were implemented and production increased to 55,000 units?
XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $10 per unit, and fixed costs of $300,000. The company is considering increasing the price of its units to $60 per unit. If the price is changed, how many units will the company need to sell for profit to remain the same as before the price change? Select one: O a. None of the given answers. O b. 7,500 O c. 11,250 O d. 9,000 O e. 12,000

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