Zot Corporation has provided the following contribution format income statement Revenue (500 units) $150,000 Variable Costs $110.000 Contribution Margin $40,000 Fixed Costs $32,000 Operating Proft $8,000 If fixed costs increased by $12,000, how many more units must Zot Corporation sell in order to maintain the same level of operating profit (choose the closest answer)? O 170 units O 50 units O 250 units O 73 units O 80 units 90 units O 100 units D 150 units

Zot Corporation has provided the following contribution format income statement Revenue (500 units) $150,000 Variable Costs $110.000 Contribution Margin $40,000 Fixed Costs $32,000 Operating Proft $8,000 If fixed costs increased by $12,000, how many more units must Zot Corporation sell in order to maintain the same level of operating profit (choose the closest answer)? O 170 units O 50 units O 250 units O 73 units O 80 units 90 units O 100 units D 150 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Durian Corporation has the following sales and costs structure: Unit sales price, P500 Unit variable costs, P300 Total fixed costs, P8 million Sales volume, 75,000 units Required: 1. Based on the original data, determine the CMR, BEP in pesos, operating profit, MSR, and the DOL. 2. Considering the following options to change the variables of profit, determine the new CMR, BEP in pesos, operating profit, MSR, and DOL. a. Unit sales price decreases by 15%.Unit variable costs decrease by 10%. c. Total fixed costs and expenses decrease by P800,000. d. Quantity sold decreases by 10,000.
! Required information [The following information applies to the questions displayed below] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units) $ 10,000 5,500 4,500 2,250 Sales Variable expenses Contribution margin Fixed expenses Net operating income 2,250 6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? Net operating income %24
Remmel Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (6,000 units) Variable expenses Contribution margin Fixed expenses Net operating income If the selling price increases by $3 per unit and the sales volume decreases by 400 units, the net operating income would be closest to: Multiple Choice $13,800 $19,000 $17,733 $ 300,000 240,000 60,000 59,000 $ 1,000 $16,800
A company would like to determine various costs and points to aid them in deciding whether to expand or not. If you are given the following information, compute the required amounts and / or figures.Selling price / unit = P100 Variable cost / unit = P70Annual fixed cost = P500,000 Compute 5. Sales in units to earn a profit of 10% of sales.
! 00 Required information [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 90,000 49,500 40,500 33,210 $ 7,290 10. How many units must be sold to achieve a target profit of $24,300? (Round intermediate calculations to 2 decimal places.) Number of units
ZWYCDL159 Corp. sells a single product. ZWYCDL159 wants to achieve a target income of $105,000 next year. $8 50% Price per unit Contribution margin ratio ID#84756) Annual fixed expenses $155,000 Q.) How many units of the product does ZWYCDL159 have to sell to achieve the target? A.) units
Pls provide solutions The following information pertains J N' J cost-volume-profit relationships:Break-even point in units sold1,000 Variable costs per unit$500 Total fixed costs$150,000 Tax Rate25% How much will be contributed to profit after taxes by the 1,001st unit sold?
! Required information [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 60,000 39,000 21,000 14,700 $ 6,300 Required: 4. If sales increase to 1,001 units, what would be the increase in net operating income? Note: Round your answer to 2 decimal places.
Assume the following data for Mother Earth LLC: Unit Selling Price $ 230.00 Unit Variable Cost $ 145.00 Fixed Cost $ 62,500.00 Target Profit $ 120,000.00 A) Calculate the unit contribution margin ANS: $ B) How many units must be sold to attain an operating income (Target Profit) of $120,000? ANS:UNITS Break Even Point Units C) Calculate the number of units that must be sold to break-even. Round to the nearest unit. ANS: UNITS Break Even Point Dollar's D) Calculate how much money in Sales must be generated to break-even. ANS: $
Patriot Corp has the following contribution format income statement. (Assume all information is within relevant range) What is the Margin of safety in sales dollars? (select closest answer) Sales (10,000 units) $380,000 Variable expenses 190,000 Contribution Margin 190,000 Fixed Expenses 150,000 Net Operating income $ 40,000 $40,000 $39,200 $68,780 O $79,990
Stonebraker Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (9,000 units) $270,000 Variable expenses 189,000 Contribution margin 81,000 Fixed expenses 77,400 Net operating income $3,600 Required: A. What is the breakeven quantity? B. What is the breakeven sales dollar? C. What is the margin of safety in dollars? D. What is the degree of operating leverage? E. If sales increase to 9,400 units, what would be the estimated increase in net operating income? F. If the variable cost per unit increases by $6, spending on advertising increases by $3,000, and unit sales increase by 19,200 units, what would be the estimated net operating income? G. Estimate how many units must be sold to achieve a target profit of $26,100.
Stonebraker Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (9,000 units) $270,000 Variable expenses 189,000 Contribution margin 81,000 Fixed expenses 77,400 Net operating income $3,600 Required: A. What is the breakeven quantity? B. What is the breakeven sales dollar? C. What is the margin of safety in dollars? D. What is the degree of operating leverage? E. If sales increase to 9,400 units, what would be the estimated increase in net operating income? F. If the variable cost per unit increases by $6, spending on advertising increases by $3,000, and unit sales increase by 19,200 units, what would be the estimated net operating income? G. Estimate how many units must be sold to achieve a target profit of $26,100. Please help me to solve remaining sub parts.