Answered: Data for Sylva Corporation are shown…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EA: Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of...

See similar textbooks

Related questions

Question

Data for Sylva Corporation are shown below:

	Per Unit	Percent of Sales
Selling price	$ 80	100%
Variable expenses	$ 52	65%
Contribution margin	$ 28	35%

Fixed expenses are $76,000 per month and the company is selling 4,600 units per month.

How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $10,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,000?

Problem 2

Haywood Products distributes a single product, a woven basket whose selling price is $12 per unit and whose variable expense is $11 per unit. The company’s monthly fixed expense is $2,200.

Calculate the company’s break-even point in unit sales.
Calculate the company’s break-even point in dollar sales.

Note: Do not round intermediate calculations.

Problem 3

Lin Corporation has a single product whose selling price is $134 per unit and whose variable expense is $67 per unit. The company’s monthly fixed expense is $32,100.

Calculate the unit sales needed to attain a target profit of $4,750. (Note: Do not round intermediate calculations.)
Calculate the dollar sales needed to attain a target profit of $9,000.(Note: Round your intermediate calculations to the nearest whole number.)

Expert Solution