I need questions answers accounting Last month fixed costs and contribution were$50,000 and $75,000 respectively. What is theprofit this month if both increase by 10%?

Step 1: Define Net ProfitNet profit, which is synonymous with net income, is the amount of money a…

Answered: Last month fixed costs and contribution…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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Similar questions

Suppose that there is a customer expected to annually generate $1,500 of gross contribution. With 10% of annual discount factor, the NPV of the expected profits for the next THREE YEARS from this customer is about A) $4,500 B) $4,103 C) $5,462 D) $3,730
The costs and revenue projections for a new product are estimated. What is the estimated profit at a production rate of 20% above breakeven? Fixed cost = $456,000 per year Production cost per unit = $156 Revenue per unit = $342 The estimated profit is determined to be $ per year.
During March, a firm expects its total sales to be $162,000, its total variable costs to be $95,200, and its total fixed costs to be $25,200. What would the contribution margin for March be?
On the average, a company has a work-in-process lead time of 10 weeks and annualcost of goods sold of $30 million. Assuming that the company works 50 weeks a year:a. What is the dollar value of the work-in-process?b. If the work-in-process could be reduced to 5 weeks and the annual cost of carryinginventory was 20% of the WIP inventory value, what would be the annual savings?
If Sales for the last year was Rs. 40,00,000 and variable cost ratio is 80%. What will be the new contribution if the sales increase by 20%? Oa.10,50,000 O b. 9,60,000 O c. 9,20,000 O d. 8,00,000
A machine manufacturer sells each machine for $6,900. The fixed costs are $287,450 per annum, variable costs are $2,050 per machine, and the production capacity is 74 machines in a year. a. What is the break-even volume? Round up to the next whole number b. What is the break-even revenue? Round to the nearest cent c. What is break-even as a percent of capacity per annum? % Round to two decimal places d. What is the profit or loss made if 68 machines are sold in a year?
If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
The fixed cost at Harley motors are $1M annually. The main product has a revenue of $9.90 per unit and $4.50 variable cost What is the annual profit (or loss) if 150,000 units are sold?
Andrea Manufacturing provided the following information for last month. Sales P10,000 Variable cost 3,000 Fixed cost 5,000 Operating Income P 2,000 If sales double next month, what is the projected operating income?
How many customers and what revenue will the resturant need each month to break even? The monthly costs consist of rent of $10,000, interest of $3,500, fixed labor costs of $12,000, other variable costs are 27% of revenue. The guest check average is $14.50.
A total of 50,000 units were sold last year. The contribution margin per unit was $4, and fixed expenses totaled $50,000 for the year. This year fixed expenses are expected to increase BY $20,000, but the contribution margin per unit will remain unchanged. How many units must be sold this year to earn the same profit as was earned last year? O 37,500 O 50,000 O 17,500 O 58,500 O 55,000
A company has $25 per unit selling price, $7.00 per unit in variable production cost and $2.00 per unit in variable selling and administrative cost. The annual fixed production cost is $400,000. The annual fixed selling and administrative cost is $50,000. Complete the table below for each year. Assume a FIFO flow.

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Last month fixed costs and contribution were $50,000 and $75,000 respectively. What is the profit this month if both increase by 10%?