Question

In: Accounting

if fixed costs are $728,400, the unit selling price is $42, and the unit variable costs...

if fixed costs are $728,400, the unit selling price is $42, and the unit variable costs are $27, what is the break-even sales (units) if target profits are increased by $330,930?

A) 26,498

B) 22,062

C) 48,560

D) 70,622

if the contribution margin ratio for 4 Zsons Company is 30%, sales were $843,000 and fixed costs were $113,295, what was the income from operations?

A) 252,900

B) 139,605

C) 158,200

D) 377,650

Period Costs:

A) are expensed as costs are incurred for direct labor, direct material and factory overhead

B) appear on both the income statement and balance sheet

C) appear only on the income statement and balance sheet

D) appear only on the balance sheet

If sales are $740,000, variable costs are $466,200, and operating income is $31,500, what is the contribution margin ratio?

A) 63.0%

B) 32.7%

C) 41.3%

D)37.0%

Solutions

Expert Solution

Part 1

Fixed cost = $728,400

Selling price per unit = $42

variable costs per unit = $27

Target profit = $330,930

Contribution margin per unit = Selling price per unit - variable costs per unit

= 42 - 27

= $15

break-even sales (units) if target profits are increased by $330,930 = (Fixed cost + Target profit)/Contribution margin per unit

= (728,400 + 330,930)/15

= 1,059,300/12

= 70,620 units

Correct option is (D)

Part 2

Selling price = $843,000

Fixed cost = $113,295

Contribution margin ratio = 30%

income from operations = Sales x Contribution margin ratio - fixed cost

= 843,000 x 30% - 113,295

= 252,900 - 113,295

= $139,605

Correct option is (B)

Par 3

Period cost appear only on the income statement .

Correct option is (c)

Period cost do not appear on the balance sheet.

Part 4

Sales = $740,000

Variable cost = $466,200

Operating income = $31,500

Contribution margin = Sales - Variable cost

= 740,000 - 466,200

= $273,800

Contribution margin ratio = Contribution marginSales

= 273,800/740,000

= 37%

Correct option is (D)

kindly give a positive rating if you are satisfied with the solution. Please ask if you have any query related to the question, Thanks.

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

If fixed costs are $247,000, the unit selling price is $116, and the unit variable costs...
If fixed costs are $247,000, the unit selling price is $116, and the unit variable costs are $73, what are the break-even sales in units (rounded to a whole number)?
For the coming year, Cleves Company anticipates a unit selling price of $84, a unit variable cost of $42, and fixed costs of $399,000.
Break-Even Sales and Cost-Volume-Profit ChartFor the coming year, Cleves Company anticipates a unit selling price of $84, a unit variable cost of $42, and fixed costs of $399,000.Required:1. Compute the anticipated break-even sales (units).units2. Compute the sales (units) required to realize a target profit of $159,600.units3. Construct a cost-volume-profit chart, assuming maximum sales of 19,000 units within the relevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even.$1,117,200$999,600$798,000$596,400$478,8004. Determine...
19) If fixed costs are $274,000, the unit selling price is $124, and the unit variable...
19) If fixed costs are $274,000, the unit selling price is $124, and the unit variable costs are $79, the break-even sales (units) is a.3,468 units b.1,350 units c.6,089 units d.2,210 units 18) Strait Co. manufactures office furniture. During the most productive month of the year, 3,400 desks were manufactured at a total cost of $83,000. In the month of lowest production, the company made 1,140 desks at a cost of $64,400. Using the high-low method of cost estimation, total...
Variable Direct Costs Machine Hours Fixed Production Costs Fixed Overhead Costs Units Sold Unit Selling price...
Variable Direct Costs Machine Hours Fixed Production Costs Fixed Overhead Costs Units Sold Unit Selling price Machine Hours per Unit Total Sales Dollars Variable Cost per Unit Total Contribution Dollars Contribution Dollars per Unit Contribution Margin Percentage Item #1 $65,000 10000 $25,000 $2,000 22500 $10 Item #2 $55,000 20000 $22,000 $2,500 23000 $8 Item #3 $42,000 7500 $15,000 $1,750 27500 $7 Item #4 $27,000 5000 $5,000 $500 11000 $6 Complete the grey cells in the above table Which product would...
Variable Direct Costs Machine Hours Fixed Production Costs Fixed Overhead Costs Units Sold Unit Selling price...
Variable Direct Costs Machine Hours Fixed Production Costs Fixed Overhead Costs Units Sold Unit Selling price Machine Hours per Unit Total Sales Dollars Variable Cost per Unit Total Contribution Dollars Contribution Dollars per Unit Contribution Margin Percentage Item #1 $65,000 10000 $25,000 $2,000 22500 $10 Item #2 $55,000 20000 $22,000 $2,500 23000 $8 Item #3 $42,000 7500 $15,000 $1,750 27500 $7 Item #4 $27,000 5000 $5,000 $500 11000 $6 Complete the grey cells in the above table Which product would...
Steven Company has fixed costs of $239,080. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $239,080. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price per unit Variable Cost per unit Contribution Margin per unit X $1,248 $468 $780 Y 473 253 220 The sales mix for products X and Y is 60% and 40% respectively. Determine the break-even point in units of X and Y combined. Round answer to nearest whole number. units...
Steven Company has fixed costs of $239,080. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $239,080. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price per unit Variable Cost per unit Contribution Margin per unit X $1,248 $468 $780 Y 473 253 220 The sales mix for products X and Y is 60% and 40% respectively. Determine the break-even point in units of X and Y combined. Round answer to nearest whole number. units
Given the following information: Selling Price (per unit): $10,000 Variable Costs (per unit): $7,000 Fixed Costs:...
Given the following information: Selling Price (per unit): $10,000 Variable Costs (per unit): $7,000 Fixed Costs: $200,000 Required Each of these are separate situations: What is the break-even point in total sales in dollars? How many units need to be sold to make a profit of $20,000? How many units need to be sold to make a profit of $20,000 if fixed costs increase from $200,000 to $250,000? How many units would they need to sell if they wanted to...
Given the following information: Selling Price (per unit): $10,000 Variable Costs (per unit): $7,000 Fixed Costs:...
Given the following information: Selling Price (per unit): $10,000 Variable Costs (per unit): $7,000 Fixed Costs: $200,000 Required Each of these are separate situations: What is the break-even point in total sales in dollars? How many units need to be sold to make a profit of $20,000? How many units need to be sold to make a profit of $20,000 if fixed costs increase from $200,000 to $250,000? How many units would they need to sell if they wanted to...
20-Spice Inc.'s unit selling price is $54, unit variable costs are $33, fixed costs are $120,000,...
20-Spice Inc.'s unit selling price is $54, unit variable costs are $33, fixed costs are $120,000, and current sales are 9,300 units. How much will operating income change if sales increase by 5,500 units? 30 The contribution margin ratio is the a.same as the variable cost ratio b.portion of equity contributed by stockholders c.same as the profit-volume ratio d.same as profit
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT