Assume the following (1) variable expenses = $308,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 20 %, and (4) net operating income = $10,000. Given these four assumptions,which of the following is true? Multiple Choice The total contribution margin = $246,400 The break-even point in sales dollars is $335, 000 The total sales = $369,600 The total fixed expenses = $61, 600

The contribution margin is calculated as the difference between the sales and variable costs. The…

Answered: Assume the following (1) variable…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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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?
Assume the following (1) variable expenses = $286,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 20%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? Multiple Choice The total sales = $343,200 The total fixed expenses = $57,200 The break-even point in sales dollars is $307,500 The total contribution margin = $228,800
Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 37%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? Multiple Choice The total fixed expenses = $126,000 The variable expense per unit = $7.40 The total contribution margin = $74,000 The break-even point is 8,077 units
Assume the following (1) variable expenses = $300,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 20%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? Multiple Choice The total fixed expenses = $60,000 The variable expense ratio is 400% The total contribution margin = $240,000 The total sales = $375,000
Assume the following (1) variable expenses = $302,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 20%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? Multiple Choice O O The variable expense ratio is 400% The total sales $377,500 The total contribution margin= $241,600 The total fixed expenses $60,400 =
Assume the following (1) sales = $200,000 , (2) unit sales = 10,000 , (3) the contribution margin ratio = 37%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? a.) the total fixed expense = $64000 b.) the break-even point is 8,077 units c.) the total variable expense = 74000 d.) the total contribution margin = $126000
Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 37%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? a.) the total fixed expense = $126,000 b.) the break-even point is 8,077 units c.) the variable expense per unit = $7.40 d.) the total contribution margin = $74,000
Assume the following (1) selling price per unit = $25, (2) variable expense per unit = $13, (3) unit sales = 2,640, and (4) total fixed expenses = $25,000. Given these four assumptions, net operating income must be: Multiple Choice $9,320. $6,680. $41,000. $27,640.
Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio=41%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? Multiple Choice О The total fixed expenses = $118,000 о The variable expense per unit = $8.20 о The total contribution margin = $82,000 о The break-even point is 7,222 units
Munabhai
Assume the following (1) variable expenses = $294,000, (2) unit sales = 10,000, (3) the contribution margin rotio =25%, ond (4) net operoting income S10,000. Given these four assumptions, which of the following is true? Multiple Cholce The break-even polnt In sales dollars Is $352,000 The total contributlon margin = $220,500 The total sales 5367500 The total fixed expenses= $73,500
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