At a break-even point of 1,000 units sold, total variable expenses were $4,000 and total fixed expenses were $5,000. What will net income be if 1010 units are sold? Select one: $50. O $5.00 O not enough information is given to answer this question O $22.50 Last year, Perry Company reported net income of $10,000. Its variable expenses totalled $60,000 or $6 per unit. The unit contribution margin was $3.00 per unit. The break-even point in units for Perry Company is: Select one: not enough information is given to answer this question 3,333.33 units 8,000 units STUCY to search N 近 0 F10 F12 83

At a break-even point of 1,000 units sold, total variable expenses were $4,000 and total fixed expenses were $5,000. What will net income be if 1010 units are sold? Select one: $50. O $5.00 O not enough information is given to answer this question O $22.50 Last year, Perry Company reported net income of $10,000. Its variable expenses totalled $60,000 or $6 per unit. The unit contribution margin was $3.00 per unit. The break-even point in units for Perry Company is: Select one: not enough information is given to answer this question 3,333.33 units 8,000 units STUCY to search N 近 0 F10 F12 83

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....

See similar textbooks

Similar questions

Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)
Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
Khaling Company sold 27,150 units last year at $15.60 each. Variable cost was $11.40, and total fixed cost was $118,020. Required: 1. Prepare an income statement for Khaling for last year. 2. Calculate the break-even point in units. 3. Calculate the units that Khaling must sell to earn operating income of $10,080 this year.
Miller Company’s most recent income statement follows: Total Per Unit Sales (15,000 units) $ 300,000 $ 20 Less: Variable expenses 180,000 12 Contribution margin 120,000 $ 8 Less: Fixed expenses 70,000 Net income $ 50,000 Consider each of the following cases independently. Required:1. Prepare a new income statement if the sales volume increases by 15%, and the selling price decreases by $1.00. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.)
Spice Inc.'s unit selling price is $50, the unit variable costs are $36, fixed costs are $118,000, and current sales are 10,900 units. How much will operating income change if sales increase by 5,400 units? Oa. $228,200 increase Ob. $152,600 increase Oc. $152,600 decrease Od. $75,600 increase
Monster Inc. sells 100,000 for $120 a unit. Fixed costs are $300,000, and net income is $200,000. What should be reported as variable expense in CVP income statement?
Last month the Blank Inc. had sales of 5,000 units sold for P40 each. The total variable expenses were P120,000, and fixed costs were P65,000. Required: a. What is the company’s contribution margin (CM) ratio? b. Estimate the change in the company’s net operating income if it were to increase its total sales by P8,000.
Lin Corporation has a single product whose selling price is $120 per unit and whose variable expense is $80 per unit. The company's monthly fixed expense is $50,000. Required: 1. Calculate the unit sales needed to attain a target profit of $10,000. 2. Calculate the dollar sales needed to attain a target profit of $15,000. (For all requirements, do not round intermediate calculations.) 1. Units sales to attain target profit 1,500 units 2. Dollar sales to attain target profit
Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. The total of its variable cost is $150 000. Fixed costs were $180 000. If the current selling price, variable costs, and fixed costs are the same as last year, what net income can be expected from revenue of $500 000 in the current year Select one: A. $1 184 210 B. $346 260 C. $394 737 D. $1 418 216 E. $381 388
Last month, when Holiday Creations, Inc. sold 50,000 units, total sales were $200,000, variable expenses were 60% of sales revenue, and total fixed expenses were $65,000. Required: 1. What is the company’s CM per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 2. Estimate the change in the company’s net income if it were to increase its sales by 1,200 units. (Do not round intermediate calculations.)
Last year Minden Company introduced a new product and sold 38,900 units of it at a price of 598 per unit. The product's variable expenses are $68 per unit and its fixed expenses are $839,400 per year. Required: 1. What was this product's net operating income (loss) last year?