Question

 

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Pearson Company sold 5,000 units for $50 each. Variable costs were $28 per unit and total fixed expenses were $20,350.

What is Pearson's total contribution margin?

What is the breakeven in terms of units for Pearson?

What is Pearson's net income?

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Ava’s Creations sells two products. A and B. The weighted average per unit is $40 and Ava’s fixed costs are $24,800. The sales mix is 30% for A and 70% for B.

How many units of Product A must be sold by Ava to break-even?

How many units of Product B must be sold by Ava to break-even?

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JS Corp. has a selling price of $34 variable costs of $14 per unit, and fixed costs of $16,290. JS net income is $36,684.

How many units did JS sell?

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Parker Co has sales of $298,200, a contribution margin of $111,000 and net income of $60,850.

Parker’s degree of operating leverage is: ________________ (Round your answer 2 decimal places.)

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Using the high low method, Hadley Company calculated the variable cost as $4.7 per unit. The high level of the activity was 2,770 units and $36,820 of total cost.

Total fixed costs equal $_______ (Enter your answer as a whole number.)

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Joe uses the high-low method of estimating costs. Joe had total costs of $13,841 at its lowest level of activity, when 1,583 units were sold. When, at its highest level of activity, sales equaled 7,423 units, total costs were $32,379.

Joe would estimate fixed costs as: _______ (Give your answer as a whole number but do not round your calculations until you get to the final answer.)

Answer 1