Part 2.Bhiner Company prepared the following contribution format income statement basedon a sales volume of 1,000 units (the relevant range of production is 500 units to1,500 units).Sales$25,000Variable expenses10.000ontribution margin15,000+Fixed expenses8.000Net operating income$ 7.000Required:(Answer each question independently and always refer to the original data unlessinstructed otherwise.) (Show all work/calculations. No credit will be given without f. If the selling price increases by $4 per unit and the sales volume decreases by 200units, what would be the net operating income?If the variable cost per unit increases by $2, spending on advertising increases byg.$1.000, and unit sales increase by 240 units, what would be the net operatingincome?h. What is the break-even point in unit sales?i. What is the break-even point in dollar sales?i. How units must be sold to achieve a target profit of $7,500?many

Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

f. If the selling price increases by $4 per unit and the sales volume decreases by 200 units, what would be the net operating income? g. If the variable cost per unit increases by $2, spending on advertising increases by $1,000, and unit sales increase by 240 units, what would be the net operating income? h. What is the break-even point in unit sales? i. What is the break-even point in dollar sales?

f. If the selling price increases by $4 per unit and the sales volume decreases by 200 units, what would be the net operating income? g. If the variable cost per unit increases by $2, spending on advertising increases by $1,000, and unit sales increase by 240 units, what would be the net operating income? h. What is the break-even point in unit sales? i. What is the break-even point in dollar sales?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Sales Beer sales Food sales Other sales Total sales Less cost of sales Gross margin Less marketing…

A: Break even sales cover all fixed and variable costs and at this point, the business earns neither…

Q: able costs are $4 per unit. How m if sales volume is increased by

A: Price per unit = $5 Variable cost = $4 Fixed cost per unit =$2 If sales volume increased by 10…

Q: lo Company distributes a single product. The company's sales and expenses for last month follow:…

A: The contribution margin is calculated as difference between sales and variable costs. The break even…

Q: In the month of March, Blossom Salon services 620 clients at an average price of $120. During the…

A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…

Q: If a firms expected sales are $256,000 and its break-even sales are $193,000, what will the margin…

A: Margin of safety: The margin of safety indicates how much a company’s sales level can drop before it…

Q: refer to the orginal data. Compute the company's margin of safety in both dollar and percentage…

A: Answer 4) Calculation of Margin of Safety in Dollars Margin of Safety in Dollars = Current Sales –…

Q: Complete the following problems using the following ratios:…

A: Break Even Point is the point where firms earns "No Profit & No Loss". This is the point where…

Q: An economist estimates the demand function as P = 1250 15Q, where P is in dollars and Q is in number…

A: Solution: The given information includes:Demand function: P=1250−15QTotal cost (TC) equation:…

Q: decreases increases remains th

A: When the selling price per unit decreases, the contribution margin per unit decreases because…

Q: I. What is the break- even point in dollar sales? J. How many units must be sold to achieve a…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Study the information given and answer the following questions independently:1. Use the contribution…

A: The answer is provided in the explanation section.Explanation:1. Break-even Sales Value: - Variable…

Q: If the selling price per unit is $80, the variable cost per unit is $20 and the fixed cost is 3600.…

A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…

Q: At this price, we would say the demand is: O Elastic O Unitary O Inelastic Based on this, to…

Q: Complete the following problems using the following ratios:…

A: Break even point is sales at which the operating income is zero that means fixed cost and variable…

Q: Calculate the break even number of units if the fixed expenses are $7,000 and the contribution…

A: Given, Fixed expenses = $7000 Contribution margin per unit = $14

Q: A corporation that is a single product firm is predicting that a price increase next year will cause…

A: The company can decide to increase the sales price. The increase in sales price lower the demand for…

Q: I have the following additional questions: 1) Calculate the breakeven point in dollars under the…

A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of…

A: Contribution Margin is Sales minus Variable Cost and Contribution Margin Ratio is Contribution…

Q: Part 2. Rhiner Company prepared the following contribution format income statement based on a sales…

A: Contribution margin income statement is an income statement which shows contribution margin amount…

Q: What is the break-even point in sales dollars? Break-even point $

A: Formula: Break-even point in sales dollars=Fixed costsUnit selling price-Unit variable costs×Unit…

Q: From the following data, calculate: Fixed Expenses OMR 12000. Break-Even point OMR 20000. (a) P I…

A: Break-even point: The point where there is neither profit nor loss is called the break-even point.…

Q: Which will create the most favorable effect in gross profit A. 10% increase in selling price B. 10%…

A: Assume Selling price. = 120 Costs: Production cost…

Q: ed, hich of the following statements is true? 6. Once the break-even point is A) Variable expenses…

A: The Break-even point is a situation in which there is neither profit nor loss. In other words, this…

Q: the information provided below to calculate the following independently: 3.1 Break - even quantity…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: Sarah Allen owns and operates Blossom, a bakery that creates personalized birthday cakes for a…

A: Break-even units represent the number of units sold to cover the costs like variable and fixed. When…

Q: 1.) refer to the original data. Compute the company's margin of safety in both dollar and percentage…

A: Lets understand the meaning of margin of safety. Margin of safety is a sales over a break even…

Question

Part 2.
Bhiner Company prepared the following contribution format income statement based
on a sales volume of 1,000 units (the relevant range of production is 500 units to
1,500 units).
Sales
$25,000
Variable expenses
10.000
ontribution margin
15,000
+Fixed expenses
8.000
Net operating income
$ 7.000
Required:
(Answer each question independently and always refer to the original data unless
instructed otherwise.) (Show all work/calculations. No credit will be given without

f. If the selling price increases by $4 per unit and the sales volume decreases by 200
units, what would be the net operating income?
If the variable cost per unit increases by $2, spending on advertising increases by
g.
$1.000, and unit sales increase by 240 units, what would be the net operating
income?
h. What is the break-even point in unit sales?
i. What is the break-even point in dollar sales?
i. How units must be sold to achieve a target profit of $7,500?
many

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

1-Due to an increase in labor rates, the company estimates that variable expenses will increase by $3 per ball next year. If this change takes place and the selling price per ball remains constant at $25, what will be the new CM ratio and break-even point in balls? 2. Refer to the data in (2) above. If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $90,000, as last year? 3. Refer again to the data in (2) above. The president feels that the company must raise the selling price of its basketballs. If Northwood Company wants to maintain the same CM ratio as last year, what selling price per ball must it charge next year to cover the increased labor costs?
Now suppose that annual unit sales, variable cost, and unit price are equal to their respective expected values—that is, there is no uncertainty. Determine the company's annual profit for this scenario. Round answer to a whole number, if needed.$
using the price p=20 - .05x, use the Revenue function to find the marginal Revenue function R'(x), Find a. R'(100)= b. R'(175)= c. R'(250)= The marginal Revenue R'(x) approximates how the revenue will change on the sale of the next item. a. Given R(100) = 642 and R'(100)= 18 then R(101) ≈ b. Given R(400) = 16,250 and R'(400)= -10 then R(401) ≈ c. Given R(1000) = 3500 and R'(1000) = 3 then R(1001) ≈
If the selling price per unit is $60, the variable expense per unit is $20, and total fixed expenses are $240,000, what are the breakeven sales in dollars?
I need the answers of 1-6.
P Company has provided the following data: Sales Price per unit: $50. Variable Cost per unit: $30; Fixed Cost: $135,000 Expected Sales: 20,000 units. d. Determine the margin of safety in dollars. e. If the company wants to have net income of $70,000, how many units must they sell.
Assuming all other things are the same, selling price per unit must have even point. Select one: O A. remained the same O B. increased O C. increased first, then decreased O D. decreased if there was a decrease in the break-
How do you calculate the break-even point in sales? Contribution margin fixed costs Fixed costs total sales Profit variable costs Fixed costs contribution margin % 0,000