SUBJECT - ACCOUNT Falcon Acoustic, Inc. produces stereo speakers. The selling price per pair of speakers is $800. The variable cost of production is $300 and the fixed cost per month is $50,000. a. Calculate the contribution margin associated with a pair of speakers. b. In August, the company sold five more pairs of speakers than planned. What is the expected effect on profit of selling the additional speakers? c. Calculate the contribution margin ratio for Falcon Acoustic associated with a pair of speakers. d. In October, the company had sales that were $5,000 higher than planned. What is the expected effect on profit related to the additional sales?

SUBJECT - ACCOUNT Falcon Acoustic, Inc. produces stereo speakers. The selling price per pair of speakers is $800. The variable cost of production is $300 and the fixed cost per month is $50,000. a. Calculate the contribution margin associated with a pair of speakers. b. In August, the company sold five more pairs of speakers than planned. What is the expected effect on profit of selling the additional speakers? c. Calculate the contribution margin ratio for Falcon Acoustic associated with a pair of speakers. d. In October, the company had sales that were $5,000 higher than planned. What is the expected effect on profit related to the additional sales?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

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