In: Accounting
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% |