Need help Assume the following information:Volume700,000 unitsTotal variable costs $17,500,000Total fixed costs$9,800,000Revenue per unit $50If the company decreases the volume to 650,000 units, what is theprofit per unit assuming both 700,000 units and 650,000 units arewithin the relevant range?a. $10.21b. $9.92c. $8.56d. $7.97

Step 1: Define Variable CostingVariable costing is a type of costing method used by the management…

Answered: Assume the following information:…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter16: Capital Structure Decisions

Section: Chapter Questions

Problem 1P

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Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per unit, and fixed costs are 8,175,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income.
A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the contribution margin per unit? A. $30 B. $50 C. $80 D. $110
Assume the following cost information for Standard Corporation: Selling price per unit Variable costs per unit Total fixed costs $45.00 $25.00 $100,000.00 of stion If Standard's fixed costs increased by 10% and management wanted to maintain the original breakeven point, then the selling price per unit would have to be increasedIto: O a. $49.50 O b. $47.00 O C. $65.00 O d. $48.50
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Compute for what is being asked1. Unit selling price P800 unit variable cost P350 annual sales volume, 620 units, fixed costs and expenses P200,000 per year. Compute the following.a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salee. Operating income (BIT)using the break even salef. Operating income (EBIT) using the annual sales volume
Assume the following cost information for Standard Corporation: Selling price per unit Variable costs per unit $45.00 $25.00 $100,000.00 Total fixed costs If Standard's fixed costs increased by 10% and management wanted to maintain the original breakeven point, then the selling price per unit would have to be increased to: O a. $49.50 O b. $47.00 Ос. O c. $65.00 O d. $48.50
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If fixed costs are $1,200,000, the unit selling price is $240, and the unit variable costs are $110, what is the amount of sales required to realize an operating income of $200,000? Answer a. 12,000 units b. 5,833 units c. 10,769 units d. 9,231 units
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Assume the following: 1. selling price per unit = $25 2. variable expense per unit = $13 3. the total fixed expenses = $20,000 4. net operating income = $14,200 Given these four assumptions, unit sales must be: Multiple Choice 3,420 units. 1,200 units. 2,342 units. 2,850 units.
The selling price of a particular product is $37.00 per unit, fixed costs total $225,600, and the breakeven sales in dollars is $940,000, what will the variable expense per unit be? Question 4 options: $117.17 $28.12 $8.88 $45.88
If the selling price per unit is $50, the variable expense per unit is $20, and total fixed expenses are $260,000, what are the breakeven sales in dollars? A. $433,333 B. $650,000 OC. $185,714 ⒸD. $156,000

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