Spice Inc.'s unit selling price is $50, the unit variable costs are $36, fixed costs are $118,000, and current sales are 10,900 units. How much will operatingincome change if sales increase by 5,400 units?Oa. $228,200 increaseOb. $152,600 increaseOc. $152,600 decreaseOd. $75,600 increase

Operating Income A company's gross income, which is equal to total revenue less cost of products…

Answered: Spice Inc.'s unit selling price is $50,…

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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Sales (22,200 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 199,800 119,880 79,920 46, 620 $ 33,300 Per Unit $9.00 5.40 $ 3.60 Required: (Consider each of the four requirements independently): 1. Assume the sales volume increases by 3,330 units: a. What is the revised net operating income? b. What is the percent increase in unit sales? c. Using the most recent month's degree of operating leverage, what is the percent increase in net operating income? 2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by 23%? 3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 5%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 7%?…
If fixed costs are $729,000 and variable costs are 60% of sales, what is the break-even point in sales dollars? Oa. $1,822,500 Ob. $2,551,500 Oc. $437,400 Od. $1,166,400
Wiles Inc.'s unit selling price is $40, the unit variable costs is $30, fixed costs are $80,000, and current sales are 10,000 units. How much would operating income change if sales increase by 4,000 units? a. $100,000 increase b. $40,000 increase c. $80,000 decrease d. $60,000 decrease
Variable costs as a percentage of sales for Lemon Inc. are 64%, current sales are $691,000, and fixed costs are $180,000. How much will operating income change if sales increase by $41,800?
Variable costs as a percentage of sales for Lemon Inc. are 77%, current sales are $601,000, and fixed costs are $202,000. How much will operating income change if sales increase by $36,800? a.$8,464 increase b.$28,336 decrease c.$28,336 increase d.$8,464 decrease
Assume the following data for Dodge Company for the coming year: Fixed expenses $280,000 Variable cost per unit Selling price per unit $7 $21 Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. For Unit calculations round your answers up to the nearest whole number. a) How many units must be sold to break even? Break even sales: units b) What would the net income be if 26,200 units were sold? Net income: $ c) How many units must be sold to make a net income of $33,000 assuming selling price per unit is increased by $1.00 Total units to be sold: units
Assume the following information: Amount Per Unit Sales $ 600,000 $ 40 Contribution margin $ 360,000 $ 24 Net operating income $ 240,000 If the selling price per unit increases by 8% and unit sales drop by 6%, then the best of estimate of the new net operating income is: Multiple Choice $263,520. $243,520. $253,520. $233,520.
15.Spice Inc.'s unit selling price is $53, the unit variable costs are $39, fixed costs are $116,000, and current sales are 10,900 units. How much will operating income change if sales increase by 5,200 units? 16.Bryce Co. sales are $840,000, variable costs are $464,300, and operating income is $269,000. The contribution margin ratio is 17.Zeke Company sells 23,600 units at $17 per unit. Variable costs are $8 per unit, and fixed costs are $38,600. The contribution margin ratio and the unit contribution margin, respectively, are 18. If the contribution margin ratio for France Company is 34%, sales are $480,000, and fixed costs are $97,000, the operating income is
If fixed costs are $1,450,000, the unit selling price is $205, and the unit variable costs are $128, what are the break-even sales (units) if fixed costs are increased by $30,300? a. 28,837 units b. 23,070 units c. 19,225 units d. 15,380 units
If fixed costs are $1,300,000, the unit selling price is $208, and the unit variable costs are $105, what is the break-even point in sales units if fixed costs are increased by $42,600? a. 13,035 units b. 15,642 units c. 10,428 units d. 19,552 units
If fixed costs are $860,000 and variable costs are 61% of sales, what is the break-even point in sales dollars? Oa. $524,600 Ob. $3,065,128 Oc. $2,205,128 Od. $1,384,600
Finch Corporation produces products that it sells for $20 each. Variable costs per unit are $5, and annual fixed costs are $318,000. Finch desires to earn a profit of $51,000. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. a. Break-even point in units a. Break-even point in dollars b. Sales volume in units b. Sales in dollars Prev 1 of 16 Next >

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Spice Inc.'s unit selling price is $50, the unit variable costs are $36, fixed costs are $118,000, and current sales are 10,900 units. How much will operating income change if sales increase by 5,400 units? Oa. $228,200 increase Ob. $152,600 increase Oc. $152,600 decrease Od. $75,600 increase