Suppose the selling price per unit increased from $5.00 to $6.00 without any change in unit...

Suppose the selling price per unit increased from $5.00 to $6.00 without any change in unit variable costs or total fixed costs. What effect would this have on CVP analysis?

The contribution margin would increase.
		Fixed costs would increase.
		The contribution margin would decrease.
		The break-even point in units would increase

A company forecasts sales to be $800,000 for 2017. Fixed costs are $210,000 and the contribution margin percentage for the company is 0.30 (30%). The break-even point in dollars for the firm is:

$450,000
		$700,000
		$300,000
		$240,000

A Company calculated residual income for 200X to be $22,000. The company’s target rate of return was 12%, the turnover was 2.0. If the operating assets invested was $400,000, what was the Company’s net operating income during 200X?

$ 48,000
		$ 70,000
		$118,000
		$ 26,000

Carrol Company has sales of $9,000,000, operating assets of $3,600,000, a return on investment of 15%. The firm’s sales margin is:

6.0%
		15.0%
		37.5%
		2.0%

Expert Solution

ekkarill92 answered 2 years ago

1 If your variable cost per unit INCREASED, then your A selling price per unit would...

1 If your variable cost per unit INCREASED, then your A selling price per unit would decrease. B break-even units would decrease. C selling price per unit would increase. D break-even units would increase. 2 Which of the following explains the key difference between a traditional income statement and a contribution margin income statement? A Only the traditional income statement can correctly compute net income. B Only the contribution margin income statement can correctly compute net income. C Only the...

If exports increased to Canada and imports from Canada to the US also increased, without any...

If exports increased to Canada and imports from Canada to the US also increased, without any other changes in the US and Canada's economies, then what would happen to the US Dollar exchange rate to the Canadian Dollar? Explain. Justify your answer.

Selling price $5.00 and the unit contribution margin is $2.20 and the fixed cost $5000. Calculate...

Selling price $5.00 and the unit contribution margin is $2.20 and the fixed cost $5000. Calculate X Ltd's break-even point in sales dollars?

A shop owner increased the selling price of a shirt from $20 to $26. By what percentage was the price increased?

Monthly Budget Data Selling price per Unit $79 per unit Raw Materials Cost $27 per unit...

Monthly Budget Data Selling price per Unit $79 per unit Raw Materials Cost $27 per unit Packaging Costs $15 per unit Electricity $4 per unit Waste and Other Costs $6 per unit Salary and Wages Costs $560,000 per month Fringe Benefits 50% of salaries Rent Costs $750,000 per month Insurance Costs $50,000 per month Depreciation Costs $370,000 per month Actual Data January February Production (Units) 245000 187000 Revenue $ 19,345,000.00 $ 14,888,000.00 Raw Materials $ 6,545,000.00 $ 4,996,000.00 Package Materials...

Assume the following (1) selling price per unit = $30.

Assume the following (1) selling price per unit = $30. (2) variable expense per unit = $18, and (3) total fixed expenses = $33,900. Given these three assumptions, the unit sales needed to break-even is: Multiple Choice 36,400 units. 5,325 units 35,325 units. 2,825 units Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $300,000 120,000 180,000 111,000 $ 69,000 Per Unit $ 40 16 $24 If the variable expenses increase by $1 per unit, the advertising expenditures...

Given: the following information Variable cost per unit = $1.25 Selling price per unit = $1.00...

Given: the following information Variable cost per unit = $1.25 Selling price per unit = $1.00 Fixed Cost/Month = $40,000 Solve for: A.) How many units per month must be produced to break-even (Q)? Given: The following information: Variable cost per unit = $1.25 Q = Breakeven quantity units per month solved in part a . Fixed Cost/Month = $40,000 New selling price = ?? (Solve for) Solve for: B.) What should the new selling price must be in order to make...

Xion Co. budgets a selling price of $91 per unit, variable costs of $32 per unit,...

Xion Co. budgets a selling price of $91 per unit, variable costs of $32 per unit, and total fixed costs of $290,000. During June, the company produced and sold 12,800 units and incurred actual variable costs of $371,000 and actual fixed costs of $305,000. Actual sales for June were $1,190,000. Prepare a flexible budget report showing variances between budgeted and actual results. List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and...

CVP Analysis Data Unit sales 20,000 units Selling price per unit $60 per unit Variable...

CVP Analysis Data Unit sales 20,000 units Selling price per unit $60 per unit Variable expenses per unit $45 per unit Fixed expenses $240,000 Enter a formula into each of the cells marked with a ? below Review Problem: CVP Relationships Compute the CM ratio and variable expense ratio Selling price per unit ? per unit Variable expenses per unit ? per unit Contribution margin per unit ? per unit CM ratio ? Variable expense ratio ? Compute the...

Shah incorporated manufactures a product with a selling price of $50 per unit. unit and monthly...

Shah incorporated manufactures a product with a selling price of $50 per unit. unit and monthly cost data follow:(20POINT) Variable: Selling and administrative $ 0.4 per unit sold Direct material $10 per unit manufacture Direct Laboure $10 per unit manufacture Variable manufacturing overhead $ 5-unit manufacture Fixed: Selling and admirative $ 15000 per month Manufacturing (including depreciation of $10,000) ……30,000 per month The company pays 75% of the bill in the month incurred and 25% in the following month. All...

Question