Stellar Company has the following sales, variable cost, and fixed cost. If sales increase by $10,000 then their profit increases/ decreases by how much? Sales $50,000 Variable Costs $7,500 Fixed Costs $28,000

Stellar Company has the following sales, variable cost, and fixed cost. If sales increase by $10,000 then their profit increases/ decreases by how much? Sales $50,000 Variable Costs $7,500 Fixed Costs $28,000

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: The following information is for Alex Corp: Product X: Revenue…

A: Given that, Revenue from product X = $12 Variable cost from product X = $4.50 Revenue from product…

Q: Coor. Goed Kelly's Karts, LLC reported the following data: Sales quantity 400 units: Sales $100 per…

A: Break-even analysis is a financial and managerial accounting tool that helps businesses determine…

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: A firm sells a single product for $10. Its variable cost per unit is $6 and fixed costs are $80. If…

A: Let, no. of units sold = X So, Net Profit = (Sales price - variable cost)*No. of units sold - Fixed…

Q: breakeven point in sales dollars is:

A: Given information is: Sales = $200,000 Variable cost = $150,000 Fixed cost = $30,000

Q: Sheridan Company has fixed costs of $2300000 and variable costs are 20% of sales. What are the…

A: Total Sales: The total sales are the fixed cost, variable cost, and profit income. here variable…

Q: Spice Inc.'s unit selling price is $53, the unit variable costs are $34, fixed costs are $101,000,…

A: Income statement is a financial statement that shows the profitability, total revenue and total…

Q: Log Co has an operating gearing ratio of 33.33%. Its sales are currently $100m and its operating…

A: The operating gearing ratio, also known as the operating leverage ratio, measures the extent to…

Q: 7. the maximum that they can increase the fixed cost? Company ET 's fixed costs were $40 000,…

A: Approach: Let FC be the fixed cost, VC as the variable cost, S as the sales, TC as the total cost,…

Q: Rooney Company reported the following data regarding the product it sells: Sales price Contribution…

A: Break even point means a situation where the is neither profit nor loss. Sales revenue is sufficient…

Q: A company has provided the following data: Sales 2,000 units Sales price $50/unit Variable cost…

A: Variable costs are costs which changes along with change in sales activity level. Fixed costs do not…

Q: Papaya Corporation has the following product information: Sales price $9.00per unit $5.00per unit…

A: Calculation of operating income when sale price is $9 CALCULATION PARTICULAR AMOUNT A…

Q: Mazoon Company's variable costs are 75% of the selling price and its fixed costs are $80,00O. To…

A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…

Q: Mazoon Company's variable costs are 75% of the selling price and its fixed costs are $80,000. To…

A: As per CVP equation, Contribution margin ratio = 1 - variable cost ratio Fixed costs + Profits =…

Q: bapu

A: Markup Percentage = 21%21% is the correct. Explanation:Step 1: Markup percentage is the amount added…

Q: • Use the below information to fill out the income statement and answer the questions 4-10 below:…

A: Net income is the amount of profit or loss which is computed by deducting the costs from the total…

Q: sales price of $250 is required to earn a target profit of $45,000 if fixed costs are $1200,…

A: Profit can be calculated by deductions of fixed cost and variable cost from sales.

Q: 3. More-Power Company has projected sales of 75,000 regular sanders and 30,000 mini- sanders for…

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

Q: Find the missing values in the table below with different amount of sales and change in variable…

A: Sales: Sales include a number of goods and services sold by the organization during their accounting…

Q: Ajani Company has variable costs equal to 40% of sales. The company is considering a proposal that…

A: Variable costs on increased sales = Increase in sales x 40% = $10,000 x 40% = $4,000

Q: Hunter Inc. sells a unique product with the following information available: Sales price Variable…

A: Cost volume profit analysis is the technique used by management for decision making. The methods…

Q: Sales revenue from product X is $9,000, variable costs are $6,000, and allocated fixed costs are…

A: Change in profit = New profit - Old profit Fixed cost doesn't change even if the product X is…

Question

Stellar Company has the following sales, variable cost, and fixed cost. If sales increase by $10,000 then their profit increases/ decreases by how much?

Sales $50,000

Variable Costs $7,500

Fixed Costs $28,000

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

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 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

please step by step solution.
A company’s sales figure is £250,000 and its margin of safety ratio is 40%. Assuming that the fixed costs, the variable cost per unit and the selling price per unit do not change, the company’s margin of safety for sales of £325,000 will be: a. £175,000 b. £150,000 c. £100,000 d. £70,000
Zachary Company reported the following data regarding the product it sells: 11 Sales price Contribution margin ratio Fixed costs 48 25% $336,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $48,0000, what must the sales be in dollars? In units? c. If the sales price increases to $60 and variable costs do not change, what is the new break-even point in dollars? In units? a Break-even point in dollars Break-even point in units b. Sales in dollars Sales in units c Break-even point in dollars Break-even point in units
Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 325,000 Variable expenses 195,000 Contribution margin 130,000 Fixed expenses 105,000 Net operating income $ 25,000 What is total contribution margin if sales volume increases by 30%? Multiple Choice $17,500 $130,000 $32,500 $169,000
Total Sales are 500,000 OMR, Total Variable cost is 150000 OMR. Fixed cost is 200000 OMR Calculate Total profit Select one: O a. 265000 OMR O b. 180000 OMR O c. 150000 OMR O d. 500000 OMR
A firm sell a single product for $6. Its variable cost per unit is $4 and fixed costs are $50. Ignoring income taxes, the amount of sales revenue needed for $20 profit is Select one: a. $210. b. $150. c. $35. d. $25.
need answer of this question
Ajani Company has variable costs equal to 40% of sales. The company is considering a proposal that will increase sales by $10,000 and total fixed costs by $6,000. By what amount will net income increase? A. $6,000 B. $4,000 C. $2,000 D. $0
Wok of Fame, Inc., makes and sells woks at a price of $5.00 per unit. Variable cost is $3.00 per unit. The company's total fixed costs are $52,500. How much must total sales be if Wok of Fame wants to earn an operating income of $17,500? $100,000 $70,000 $175,000 $17,500 $26,250
• Use the below information to fill out the income statement and answer the questions 4-10 below: Selling Price per Unit Number of Units Total Dollars Sales Revenue $40.00 Variable Costs |600,000 Contribution Margin Fixed Costs 240,000 Net Income If OPEARATING LEVERAGE is 5 4. What is Net Income ?