Question

In: Accounting

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%

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