Complete the following 3 Wk 3 Financial Exercises: Problem Set 2, Part 2 problems using the following ratios: Sales level at which operating income is zero O If sales above breakeven, then profit O If sales below breakeven, then loss O Fixed expenses = total contribution margin Total sales total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio Problem 1. Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $14 per unit. 2. Calculate the break even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%. 3. Calculate the break even number of units with a target profit of $120,000 if the fixed expenses are $15,000 and the contribution margin is $60 per unit. Answer Insert your answer. Insert your answer. Insert your answer.

Complete the following 3 Wk 3 Financial Exercises: Problem Set 2, Part 2 problems using the following ratios: Sales level at which operating income is zero O If sales above breakeven, then profit O If sales below breakeven, then loss O Fixed expenses = total contribution margin Total sales total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio Problem 1. Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $14 per unit. 2. Calculate the break even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%. 3. Calculate the break even number of units with a target profit of $120,000 if the fixed expenses are $15,000 and the contribution margin is $60 per unit. Answer Insert your answer. Insert your answer. Insert your answer.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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elearn.squ.edu.or (Academic) al Accounting || fall20 All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit increases? Select one: Oa. Unit contribution margin decreases while contribution margin ratio increases. b.Both unit contribution margin and contribution margin ratio are unchanged. Oc. None of the given answers. d. Unit contribution margin increases and contribution margin ratio decreases Pe. Both unit .contribution margin and contribution margin ratio decrease.
For CVP analysis calculations, which of the following statements is correct? A. In target profit calculations, sales revenue is less than total costs. B. CVP analysis relies on our knowledge of cost function to express relationships among costs, sales volume, and profit. OC. A company's sales mix is ultimately determined by the management of a company. D. The Break-even point is the point at which operating income is greater than $0. O E. If sales volume is expected to be higher than the indifference point, management should choose the cost structure with the higher fixed costs.
Using terminology Match the following terms with the correct definitions:
Which of the following equations is true? Multiple Choice Dollar sales for company to break even (Traceable fixed expenses Common fixed expenses) + Overall contribution margin (CM) ratio Dollar sales for company to break even - (Traceable fixed expenses-Common fixed expenses) Overall contribution margin (CM) ratio Dollar sales for company to break even (Traceable variable expenses Traceable fixed expenses) Overall contribution margin (CM) ratio Dollar sales for company to break even (Traceable variable expenses-Common fixed expenses) Overall contribution margin (CM) ratio.
The contribution margin income statementa. reports expenses based on cost behavior pattern rather than cost function.b. unitizes fixed costs.c. shows contribution margin rather than operating income as the bottom line.d. is sometimes used for financial reporting purposes.e. none of the above.Use the following information for Questions 9 and 10.O’Brien, Inc.’s, 2013 contribution margin income statement shows thefollowing:Sales @ $10 per unit . . . . . . . . . . . . . $ 160,000Less: Variable expense . . . . . . . . . . . (128,000)Contribution margin. . . . . . . . . . . . . . $ 32,000Less: Fixed expenses . . . . . . . . . . . . (44,000)Operating income (loss) . . . . . . . . . . . $ (12,000)
1. Cost-volume-profit analysis is used for ________. analyzing the effects of changes in costs on profits analyzing the effects of changes in volume on profits determining selling price All of these choices are correct. 2. Contribution margin is the ________. difference between sales and fixed costs difference between sales and total costs difference between sales and variable costs None of these choices are correct.
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of 2 2. Change all of the numbers in the data area of your worksheet so that it looks like this: 1 2 3 4 5 6 7 Chapter 6: Applying Excel A Data Unit sales Selling price per unit Variable expenses per unit Fixed expenses Break-even in dollar sales If your formulas are correct, you should get the correct answers to the following questions. (a) What is the break-even in dollar sales? ✔ Answer is complete and correct. (b) What is the margin of safety percentage? Margin of safety percentage 6 7 Degree of operating leverage ✔ Answer is complete and correct. 20✔ % ✔ Answer is complete and correct. 400,000✔ (c) What is the degree of operating leverage? (Round your answer to 2 decimal places.) Percentage increase in net operating income Data Unit sales 1 Chapter 6: Applying Excel 2 3 4 5 Selling price per unit $ $ $ 240,000 A B 5.00✔ 3. Using the degree of operating leverage and without changing anything in your worksheet, calculate the percentage change in net operating income if unit sales…
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $15 Direct labor 10 Factory overhead $451,600 Selling expenses: Sales salaries and commissions 93,800 Advertising 31,800 Travel 7,100 Miscellaneous selling expense 7,800 Administrative expenses: Office and officers' salaries 91,700 Supplies 11,300 Miscellaneous administrative expense 10,500 Total $705,600 $42 It is expected that 10,800 units will be sold at a price of $140 a unit. Maximum sales within…
(a) What is the gross margin now? (b) What is the net operating income now? (c) What is the contribution margin now?
What can the weighted average contribution margin ratio be used for? Multiple Choice To solve for a measure, at any level of sales volume, of the sensitivity of operating profit to changes in volume. Breakeven and profit planning for sales volume expressed in dollars (Y) rather than units (Q). To calculate an average per-unit contribution margin based on an assumed sales mix. To figure out the relative proportion in which a company’s products (or services) are sold. To determine the extent of fixed costs in an organization’s cost structure.
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $50.00 Direct labor 30.00 Factory overhead $350,000 6.00 Selling expenses: Sales salaries and commissions 340,000 4.00 Advertising 116,000 Travel 4,000 Miscellaneous selling expense 2,300 1.00 Administrative expenses: Office and officers' salaries 325,000 Supplies 6,000 4.00 Miscellaneous administrative expense 8,700 1.00 Total $1,152,000 $96.00 It is expected that 12,000 units will be sold at a price…

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