Franklin Producers sells its core product for $9 per unit and has variable costs of $7 per unit. Total fixed costs are $26,000. Suppose variable costs increase by 20% due to an increase in the cost of direct materials. What will be the effect on the breakeven point in units?O A.Decrease from 1,625 units to 1,495 unitsO B.Decrease from 3,714.2857 units to 3,096 unitsO C. Increase from 13,000 units to 43,334 unitsO D.Decrease from 13,000 units to 2,364 units

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Answered: Franklin Producers sells its core…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Currently the unit selling price of a product is $200, the unit variable cost is $110, and the total fixed costs are $585,000. A proposal is being evaluated to increase the unit selling price to $275. Under the proposed plan, the variable cost per unit and the total fixed cost will not change. 1) Calculate the contribution margin per unit. 2) Calculate the contribution margin ratio. 3) Calculate the breakeven point in units under the current scenario.
Connor Company has fixed costs of $400,000, the unit selling price is $25, and the unit variable costs are $15. The break-even sales (units) if the variable costs are increased by $2 is a. 30,770 units b. 50,000 units c. 40,000 units d. 26,667 units
Rooney Company produces a product that sells for $36 per unit and has a variable cost of $12 per unit. Rooney incurs annual fixed costs of $151,200. Required a. Determine the sales volume in units and dollars required to break even. Note: Do not round intermediate calculations. b. Calculate the break-even point assuming fixed costs increase to $235,200. Note: Do not round intermediate calculations. a. Sales volume in units a. Sales in dollars b. Break-even units b. Break-even sales
The following independent situations relate to questions 1.2 and 1.3: 1.2. Novana company has a break-even point of 16 000 units. At break-even point, variable cost is N$25 600 and fixed cost is N$6 400. If one unit over breakeven is sold, what would be the company's total sales.1.3 Motto company's product sells for N$20 per unit. Annual fixed costs are N$56 000 and contribution margin ratio is 40% of selling price. 1.3.1 How many units would Motto company needs to sell to earn a 15% profit before tax on sales.1.3.2 Using the units you computed in (1.3.1), calculate the expected profit before tax on sales.
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $110 per unit, and fixed manufacturing costs are $112,000. Sales are estimated to be 4,200 units. If an amount is zero, enter "0". Do not round interim calculations. Round final answer to nearest whole dollar. a. How much would absorption costing income from operations differ between a plan to produce 4,200 units and a plan to produce 5,600 units? b. How much would variable costing income from operations differ between the two production plans?
Suppose that a company has fixed costs of $22 per unit and variable costs $9 per unit when 15,000 units are produced. What are the fixed costs per unit when 12,000 units are produced? Round your answer to the nearest cent. Fixed costs per unit $fill in the blank 1
On the CVP graph, the intersection between the total costs line and the Y axis represents: O a The loss area Ob. The profit area Oc The margin of safety Od. The total fixed cost Oe None of the given answers XYZ company expects the following in the next month: sales volume 50,000 units, contribution margin ratio 60%, the selling price $2per unit, and the total fixed costs $10,000. What will be the degree of operating leverage in the next month? O a 6 O b. 12 Oc 3 Od. None of the choices given O e 25 on
4.
Need A,B,C answered please
Manufacturing costs for product X include direct materials $18 per unit, direct labor $4 per unit, variable overhead $2 per unit, and fixed overhead $3 per unit, for a total of $27 per unit. If production volume is increased by 10 units, how much will total manufacturing costs change in the short term? Assume that the new production volume is in the relevant range. (hint: the total cost equation might be useful here) increase by $240 not enough information need to know the original volume increase by $220 increase by $250 O increase by $270
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The sole product of Kilo Company sells for $10 and its fixed costs total $220,000. If its break-even point is 170,000 units, what is its variable cost per unit? Select one: A. $8.71 B. $7.41 C. $9.23 D. $1.29 E. The answer cannot be determined by the information given.

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