Sugar Corporation manufactures specialized sugar cubes that are used in tea. The company has a sales price of $28, variable costs of $16 per unit, andfixed costs of $28,500. Sugar expects profit of $319,000 at its anticipated level of sales. If Sugar sells 4,100 units more than expected, how much higherwill its profits be?Multiple Choice$319,000$114,800$49,200$269,800

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

Answered: Sugar Corporation manufactures…

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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Clockmaker Ltd. makes a product called wallet. Managers from Clockmaker Ltd. want to achieve a profit of £82, 800. The wallet price equals £82 per unit. Each unit of wallet has a cost of £36 and annual total fixed costs equal £147, 200. Considering this information, which of the following statements is true? O a. To achieve the desired profit, Clockmaker Ltd. needs to sell 5, 000 units of wallet. O b. Clockmaker Ltd. would need to sell more than 3, 200 units of wallet to have positive profits. O c. Contribution per unit equals £46. O d. All the answers are true.
Bonita Industries sells MP3 players for $40 each. Variable costs are $30 per unit, and fixed costs total $120000. How many MP3 players must Bonita sell to earn net income of $180000? 30000. 12000. 6000. 5000.
Current Attempt in Progress Your answer is partially correct. Cullumber Company incurs a cost of $35 per unit, of which $19 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 5,600 units at $30 each. Cullumber will incur additional costs of $1 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Cullumber will realize by accepting the special order, assuming Cullumber has sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs $ Net income $ Reject $ $ Should Cullumber Company accept the special order? Cullumber company should accept V the special order. Accept 168000 112000 i 56000 $ $ Net Income Increase (Decrease) 168000 112000 56000
Moon Karak sells tea. The average selling price of a cup is OMR 0.200 and the average variable expense per cup is OMR 0.150. The average fixed expense per month is OMR 600. An average of 20,000 cups are sold each month. What is the margin of safety expressed as a percentage of sales? Select one: а. 30% b. 25% c. 35% d. None of the answers given e. 40% The correct answer is: 40%
Frontier Corp. sells units for $45, has unit variable costs of $19, and fixed costs of $177,000. Frontier sells 10,000 units. If sales increase 20%, by how much will profits increase? Multiple Choice 20.00% 31.33% 62.65% 93.98%
Marigold Corp.wants to produce and sell a new flavored water. In order to penetrate the market, the product will have to sell at $2 per 12 oz. bottle. The following data has been collected: Annual sales Projected selling and administrative costs Desired profit The target cost per bottle is O $0.16. O $0.20. $0.80. O $0.64. 55000 bottles $8900 $66000
Flower Depot, Inc. sells a single product for $13. Variable costs are $3 per unit and fixed costs total $100,000 at a volume level of 7,500 units. What dollar sales level would Flower Depot have to achieve to earn a target profit of $400,000? A. $550,000. B. $750,000. C. $450,000. D. $1,000,000. E. $650,000.
On-The-Go Merchandiser sells luxury carry-on travel bags for $1,200 each. The firm's fixed operating costs are $600,000 when 5,000 or fewer bags are produced, and its variable cost ratio is 80 percent (i.e., variable cost per unit is 80 percent of the selling price). What is On-The-Go's operating breakeven point? Group of answer choices A. 2,500 bags B. 6,000 bags C. 750 bags D. 500 bags E. 4,000 bags
Question 2. The marketing manager for Tim Hortons is attempting to price a cup of coffee. She knows that the cost of the coffee is $0.14 per cup, and expenses are 30% of the regular selling price. She would like the coffee to achieve an 88.24% markup on selling price.a) What is the regular selling price for a cup of coffee?b) What is the profit per cup?c) What is the markup on cost percentage?
Narchie sells a single product for $50. Variable costs are 70% of the selling price, and the company has fixed costs that amount to $374,400. Current sales total 20,000 units.If Narchie sells 28,000 units, its safety margin will be: A. $374,400. B. None of the answers is correct. C. $1,400,000. D. $152,000. E. $1,248,000.
Witrox Bhd sells two models of smartphone, the Oppo and the Xiaomi. Oppo RM 60.0 35.0 25.0 Sales price per unit Variable cost per unit Contribution margin per unit Witrox has determined that it would break even at an annual sales volume of 50,000 units, of which 75% would be Oppo. Required: a) What are the contribution margin ratios for each product and the company? b) What is the amount of Witrox's estimated annual fixed costs? Xiaomi RM 85.0 54.0 31.0 c) What is the sales mix? d) Prepare a product line income statement with operating income of RM500,000. Fixed production costs will increase RM45,000 and fixed administrative costs will increase RM22,500 to support the increase in volume.
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.

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