Question

In: Accounting

Amasarcas Inc., is a wholesaler that distributes a single product. The company’s revenues and expenses for...

Amasarcas Inc., is a wholesaler that distributes a single product. The company’s revenues and expenses for the last two months are given below:

Sales in units

5,000 units

6,000 units

Sales revenue

$500,000

$600,000

     Expense A

  10,000

    10,000

     Expense B

125,000

150,000

     Expense C

    50,000

    74,000

     Expense D

    10,000

    18,000

     Expense E

    30,000

    30,000

Net income

$275,000

$318,000

Which of the expenses (A, B, C, D, and E) are variable? How can you tell?

Which of the expenses (A, B, C, D, and E) are fixed? How can you tell?

Which of the expenses (A, B, C, D, and E) are mixed? How can you tell?

Solutions

Expert Solution


Related Solutions

Amasarcas Inc., is a wholesaler that distributes a single product. The company’s revenues and expenses for...
Amasarcas Inc., is a wholesaler that distributes a single product. The company’s revenues and expenses for the last two months are given below: Sales in units 5,000 units 6,000 units Sales revenue $500,000 $600,000      Expense A   10,000     10,000      Expense B 125,000 150,000      Expense C     50,000     74,000      Expense D     10,000     18,000      Expense E     30,000     30,000 Net income $275,000 $318,000 Which of the expenses (A, B, C, D, and E)...
sara Company distributes a single product. The company’s sales and expenses for a recent month follow:...
sara Company distributes a single product. The company’s sales and expenses for a recent month follow: Total Per Unit Sales $560,000 $80 Variable expenses 392,000 56 Contribution margin 168,000 24 Fixed expenses 150,000 Net operating income $ 18,000 Instructions: 1. What is the monthly break-even point in units sold and in sales dollars? 2. What is the company’s CM ratio and the variable expense ratio? 3. Without resorting to computations, what is the total contribution margin at the break-even point?...
Menlo Compant distributes a single product. The company’s sales and expenses for last month follow :...
Menlo Compant distributes a single product. The company’s sales and expenses for last month follow :                                                                                 Total                 Per Unit Sales                                                             $450,000                  $30         Variable Expenses                                         180,000                   12 Contribution Margin                                      270,000                  $18 Field Expenses                                                 216,000 Net Operating Income                                    $54,000 1.       What is the monthly break even point in unit sales and in dollar sales? 2.       Without resorting to computations, what is the total contribution margin at the break even point? 3.       How many units would have to be sold each...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow:    ...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow:     Total      Per Unit Sales   $   628,000      $   40      Variable expenses      439,600         28      Contribution margin      188,400      $   12      Fixed expenses      153,600               Net operating income   $   34,800               Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations,...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per Unit Sales $ 302,000 $ 20 Variable expenses 211,400 14 Contribution margin 90,600 $ 6 Fixed expenses 77,400 Net operating income $ 13,200 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per Unit Sales $ 620,000 $ 40 Variable expenses 434,000 28 Contribution margin 186,000 $ 12 Fixed expenses 148,800 Net operating income $ 37,200 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per Unit Sales $ 612,000 $ 40 Variable expenses 428,400 28 Contribution margin 183,600 $ 12 Fixed expenses 147,600 Net operating income $ 36,000 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per Unit Sales $ 624,000 $ 40 Variable expenses 436,800 28 Contribution margin 187,200 $ 12 Fixed expenses 154,800 Net operating income $ 32,400 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per Unit Sales $ 306,000 $ 20 Variable expenses 214,200 14 Contribution margin 91,800 $ 6 Fixed expenses 76,200 Net operating income $ 15,600 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per Unit Sales $ 608,000 $ 40 Variable expenses 425,600 28 Contribution margin 182,400 $ 12 Fixed expenses 151,200 Net operating income $ 31,200 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT