Question
In: Accounting
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 fixed costs are
a.$55,018
b.$18,600
c.$64,400
d.$83,000
17)
Variable costs as a percentage of sales for Lemon Inc. are 78%, current sales are $577,000, and fixed costs are $180,000. How much will operating income change if sales increase by $49,600?
a.$10,912 increase
b.$38,688 increase
c.$10,912 decrease
d.$38,688 decrease
Solutions
Expert Solution
Answer 19:
Your required answer is option C i.e. 6089 Units
Explanations:
Contribution per unit = Sales Price - Variable Cost
Contribution per unit = $124-$79
Contribution per unit = $45
Answer 18:
Your required answer is option a i.e. $55,018
Explanations:
Firstly calculate variable cost
Now use this variable cost to find out Fixed cost
Answer 17:
Your required answer is option a i.e. $10,912 Increase
Explanations:
I hope this clear your doubt.
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ekkarill92 answered 2 years agoRelated Solutions
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
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if the contribution margin ratio for 4 Zsons Company is 30%,
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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
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Unit Selling price
Machine Hours per
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Total Sales Dollars
Variable Cost per
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Contribution Margin
Percentage
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$65,000
10000
$25,000
$2,000
22500
$10
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20000
$22,000
$2,500
23000
$8
Item #3
$42,000
7500
$15,000
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27500
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Item #4
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5000
$5,000
$500
11000
$6
Complete the grey cells in the
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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
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$15,000
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27500
$7
Item #4
$27,000
5000
$5,000
$500
11000
$6
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Product
Selling Price
per unit
Variable Cost
per unit
Contribution Margin
per unit
X
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$468
$780
Y
473
253
220
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Determine the break-even point in units of X and Y combined. Round
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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
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How many units need to be sold to make a profit of
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How many units need to be sold to make a profit of
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For the current year ended October 31,...
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